Balearic Islands transfer tax: 8% to 13% and AJD 2%

How the Balearic average rate is built

Article 10.a of the Balearic tax decree uses a scale on the value of the property, “valor real o declarado –si éste último es superior al real–“:

The scale is not used directly. The decree calculates an average rate: the tax from the scale, divided by the total value of the property, times 100, expressed with two decimals (the second decimal is rounded up when the third is above 5, down otherwise). That average rate is then applied to each buyer’s taxable base (art. 10.b, last paragraphs). For one buyer owning 100% the result equals the scale applied band by band.

Garages that are separate properties have their own, lower scale (8% up to €30,000 and 9% above), except that up to two garages attached to a home follow the general rule.

Worked example (calculation, not a quote)

These figures apply the published scale to round prices.

• €300,000: all in the first band, 8% = €24,000 (average 8.00%).
• €500,000: €32,000 + 9% × €100,000 = €41,000, an average of 8.20%, so tax €41,000.
• €800,000: €50,000 + 10% × €200,000 = €70,000, average 8.75%, so tax €70,000.
• €1,500,000: €90,000 + 12% × €500,000 = €150,000, average 10.00%, so tax €150,000.
• €270,000 main residence at the 4% rate: 4% = €10,800, instead of 8% = €21,600.
• New home at €1,200,000: 10% VAT = €120,000; AJD at 2% = €24,000 on the whole value.

The reduced rates and their conditions

4% (art. 10.c), all of these together:

• the value, real or declared (whichever is higher), is €270,151.20 or less;
• the home becomes the buyer’s vivienda habitual when acquired, as defined by the personal income tax rules;
• the buyer acquires at least 50% of full ownership or of the right to use it;
• the buyer does not own 50% or more of any other home.

2% (art. 10.d) for the same buyers and the same €270,151.20 ceiling, in three cases: a buyer under 36 acquiring a first home; a buyer entitled to the disability allowance for ascendants or descendants in income tax; and a parent or parents of a large or single-parent family (the value limit there is tied to a regional order plus 15%; the 2% applies to the first €270,151.20 and 8% to the excess). The third case was reworded by Ley 4/2026, in force since 14 June 2026.

Failing the conditions (art. 10.c): if the home is not actually the main residence, the buyer must file a corrective self-assessment within one month and pay the tax at the scale rate plus late-payment interest.

Article 14 quater: a 100% bonus, with a residence test

Buyers under 30, or with a disability of 33% or more, may get a 100% bonus on the tax of a first main residence (art. 14 quater). Conditions include habitual residence in the Balearic Islands for at least three years before the purchase, a value no higher than €270,151.20, an income tax base of the last return of no more than €52,800 (individual) or €84,480 (joint), and a mortgage loan of 60% or more of the appraised value. It does not remove the duty to file the self-assessment.

The three-year residence requirement means a buyer who has just arrived, or who lives abroad, cannot use this bonus. The 4% and 2% rates have no such past-residence test in the text, only the main-residence test at the time of purchase.

AJD on new homes: the €1 million line

For the deed of a new home, art. 15 sets the general AJD at 1.5%. Article 17 has 1% for a main residence up to €270,151.20 (with the same ownership conditions as above), and 0.5% in the under-36 and similar cases. Article 17 bis adds a higher rate: when the value is €1,000,000 or more (“igual o superior”), the deed pays 2%. The line is inclusive: a €1,000,000 value already pays 2%, and the rate covers the whole value.

What non-resident and foreign buyers should know

The articles read set the scale, 4%, 2% and the AJD rates for everyone, with no distinction by residence, except for art. 14 quater, which needs three years of habitual residence in the islands. The average-rate scale hits expensive purchases hard, which is where many foreign buyers operate: at €1,500,000 the effective rate is 10%. The tax base uses the higher of the price, the declared value and the national Catastro reference value (art. 10 national text); see the Catastro guide. The buyer is the taxpayer of ITP under art. 8.a of the national text.

Filing

ITP and AJD are self-assessed. The regional body is the Balearic tax agency (Agencia Tributaria de las Illes Balears), named in the decree in the context of technical collaboration; its filing forms and deadlines were not read here, so confirm them with the agency or the professional who files.

Areas popular with foreign buyers

Payotte’s zone data for the Balearic Islands includes Palma, Calvià, Eivissa (Ibiza Town), Santa Eulària des Riu and Maó (Mahón). The tax rules above are regional and apply on all four islands.

Which professional to consult

A lawyer registered with a Spanish bar association (colegio de abogados) can test the €270,151.20 ceiling and the 50% ownership rule on a joint purchase; see property lawyers. A valuer can help when the price and the Catastro value differ; see property valuers.