We recommend that you budget your buying costs to be approximately 14% of the value of the property. This is broken down as follows: a maximum 11% tax (Spanish equivalent of stamp duty), local taxes, legal fees and notary fees.
In the Balearics the tax payable is tabulated as follows:
Till 400,000€: 8%
From 400,001€ – 600,000€: 9%
From 600,001€ – 1,000,000€: 10%
From 1,000,001€: 11%.
If you require a mortgage there is a 3% charge on the mortgage value made up of 1% arrangement fee, 1% tax and 1% notary charge.
For a non resident applying for a mortgage in Ibiza the maximum borrowing is 70% based on the bank valuation but not exceeding the official price.
For residents this percentage can be increased but is usually not in excess of 80%. A certified bank valuation should cost approximately 500€.
Remember this is Ibiza!, so there can be some small negotiation in these fees.
Disclaimer
Please note that the laws in Ibiza change very often and although I have done all I can to correctly interpret the law the above is in no way full legal advice, but my interpretation of the law, and it does not substitute the legal report of a lawyer.
