mallorca property tax calculator

How to use this Mallorca property tax calculator

This tool helps you estimate two things: your upfront purchase costs and your ongoing annual taxes. Enter your expected purchase price, choose whether the property is a resale or new build, and then tune assumptions like legal fees and IBI percentage.

The calculator is designed for quick planning. It is especially useful when comparing several apartments, fincas, or villas in different price ranges.

What taxes are included?

1) Resale property: ITP (Impuesto de Transmisiones Patrimoniales)

For resale homes in the Balearic Islands, ITP is generally applied using progressive bands. This means different slices of the price are taxed at different rates. In this calculator, the estimate uses:

• 8% up to €400,000
• 9% from €400,000 to €600,000
• 10% from €600,000 to €1,000,000
• 13% above €1,000,000

2) New build property: VAT + AJD

For new developments, buyers usually pay:

• VAT (IVA): 10% of purchase price
• AJD (stamp duty): estimated at 1.5%

This is different from resale purchases, where ITP usually applies instead of VAT.

3) Closing and setup costs

The calculator also includes editable estimates for legal, notary, land registry, and optional mortgage setup costs. These can vary by deal structure, property type, and lender requirements.

Annual ownership taxes in Mallorca

Besides purchase taxes, owners should plan for annual holding costs:

• IBI: local municipal property tax based on cadastral value.
• Waste/collection fee: municipal service fee.
• Non-resident imputed income tax: applicable for many non-resident owners even when the property is not rented out.

For non-resident estimates, this tool applies common assumptions:

• Imputed base: 1.1% of cadastral value if recently revised, otherwise 2.0%.
• Tax rate: 19% for EU/EEA non-residents, 24% for non-EU/EEA non-residents.

Worked example

Suppose you buy a resale apartment in Palma for €500,000. The ITP is not a flat rate on the full amount; it is progressive. That usually results in a lower tax than simply multiplying €500,000 by the highest bracket rate.

Then add legal/registry costs (for example 1.5%), optional mortgage setup costs, and annual IBI plus municipal fees. This full view helps prevent cash-flow surprises at completion and during the first year of ownership.

Important planning tips for buyers

Budget beyond the listing price

Many buyers underestimate transaction costs. A practical rule is to model multiple scenarios (base case, conservative case, high-cost case) before making an offer.

Check municipality-specific details

IBI rates and certain local charges vary by town. If you are comparing properties in Palma, Calvià, Andratx, or Alcúdia, do not assume annual costs are identical.

Ask for professional confirmation

This calculator is a planning tool, not legal or tax advice. Before completion, request a written estimate from your gestor, lawyer, or tax advisor to confirm current law, exemptions, and buyer-specific circumstances.

Frequently asked questions

Is this calculator only for Mallorca?

It is optimized for Mallorca/Balearic assumptions. If you buy elsewhere in Spain, rates and rules may differ.

Does this include rental income tax?

No. This version estimates purchase costs and standard annual ownership taxes only. Rental tax treatment depends on residency status, deductible expenses, and treaty rules.

Can rates change?

Yes. Tax legislation and regional policies can change. Always validate rates for the exact completion year.