1. Introduction: Why Ibiza is a unique investment destination
Ibiza is not only a world-class holiday destination but also one of the most attractive real estate markets in Europe. Every year, numerous foreign investors purchase properties on the island for holiday use, rental income, or long-term investment.
However, buying a property in Ibiza, especially if you are not a Spanish resident, requires following several legal, fiscal, and administrative steps to avoid risks and unnecessary costs.
2. Step 1: Obtain your NIE (Foreigner Identification Number)
- Mandatory to sign the deed and pay taxes.
- Can be requested in Spain or at the Spanish consulate in your home country.
- At Roig Ruiz Lawyers & Advisors, we manage the NIE quickly and efficiently to save you time.
3. Step 2: Real Estate Due Diligence in Ibiza
Before signing any contract or paying a deposit, it is crucial to carry out due diligence to verify:
- Ownership and registered charges.
- Urban planning situation (watch out for properties built without proper licenses or on protected land).
- Cadastral situation and discrepancies.
- Outstanding payments for property tax (IBI), community fees, and utilities.
In Ibiza, it is common to find properties with unregistered renovations or planning irregularities, so this check is essential to protect your investment.
4. Step 3: Deposit Agreement (Contrato de Arras)
- A private contract securing the operation with a deposit, usually 10% of the price.
- Must include deadlines, conditions, and penalties for breach of contract.
- Recommendation: always have it drafted or reviewed by a lawyer specialised in Ibiza real estate transactions.
5. Step 4: Signing the Deed before a Notary
- Done at a notary office in Ibiza.
- If you don’t speak Spanish fluently, a sworn translator is required.
- The notary will check the documentation and compliance with legal requirements.
6. Taxes When Buying a Property in Ibiza
If you buy a resale property:
- ITP (Property Transfer Tax): 8% to 13% depending on the property value in the Balearic Islands (2025 rates).
If you buy a new property:
- VAT: 10%
- Stamp Duty (AJD): 1.5%
Also consider:
- Notary and Land Registry fees.
- Lawyer and agency fees.
7. Annual Taxes for Non-Resident Owners
- IBI: Annual municipal property tax.
- Non-Resident Income Tax (IRNR): payable even if the property is not rented.
- Rubbish collection fees and other local taxes.
8. Common Mistakes to Avoid
- Not verifying urban planning compliance before purchase.
- Signing a deposit agreement without protective conditions.
- Underestimating total purchase costs.
- Failing to declare taxes in Spain as a non-resident owner.
- Buying without specialised legal advice in Ibiza.
9. How We Can Help You
At Roig Ruiz Lawyers & Advisors, based in Ibiza, we guide both national and international clients through all stages of the purchase:
- Obtaining your NIE.
- Full due diligence.
- Drafting and negotiating contracts.
- Assistance at the notary.
- Tax management and returns.
Our expertise in the Ibiza and Formentera real estate market ensures your investment is safe, smooth, and hassle-free.
If you are considering buying a property in Ibiza as a foreigner, contact our firm and we will guide you through every step.
📞 971 19 77 33| 📧 info@roigruiz-abogados.com | 🌐 Contact form at roigruiz-abogados.com
