Buying Guide Details

Buying Property in Formentera

Where to buy property in Formentera

Property on Formentera is not easy to come by as the island is small and largely undeveloped for tourism – it is reached only by sea from Ibiza Town and effectively shuts down for winter! During the summer there are frequent ferries from its neighbour, mostly daytrippers enjoying the beaches on the UNESCO ‘World Treasure’ – there’s a significant naturist element in the visitors that come here.

For those who yearn for its remote charms, including the long, sandy beaches and clear waters of common to its fellow Balearics, this ‘undiscovered’ gem of only 5,000 inhabitants might provide a genuine getaway – but only if you can find any

Process of Buying Property on Formentera

Anyone wishing to sell or buy a property for sale in Formentera must first obtain from the state – in person – a fiscal number for foreigners known as NIE (numero de identificacion de extranjeros)
Once the buyer has received the NIE number, the buyer’s lawyers can make an offer on their behalf. When a price has been agreed, it is recommended that both parties sign a preliminary agreement which outlines details such as the completion date
A deposit of 10% is the normal amount placed to secure the deal. After this, if the buyer pulls out they lose the full deposit but, should the seller decide not to go ahead, he/she must return double the amount of the deposit – i.e. 20% – to the buyer
If a property on Formentera is purchased off-plan, it is usual for payments to be broken into stages, the balance being paid when construction finishes
On completion, when all the necessary checks have been carried out, both parties sign the escritura (title deeds) in the presence of a notary. The buyer then pays the balance, plus all other fees and taxes. Copies of the deeds are sent to the Land Registry and the tax office.

Homes Overseas Property Club

Homes Overseas has joined forces with a collection of IFA specialists to form the Homes Overseas Property Club (HOPC), designed for existing and prospective overseas property homeowners.

The Club – which has access to international lawyers in no fewer than 43 different countries - has been set up in order to guide people through some of the various issues relating to buying and maintaining a property overseas. It offers advice on a range of topics, including financial, legal, insurance, taxation, property management and foreign currency matters.

For further information please telephone 0845 838 7142 or email info@homesoverseaspropertyclub.com

Fees & Taxes

Taxes and fees usually amount to around 10% of the total purchase price of the property on Formentera
Taxes payable depend on whether the property on Formentera being purchased is new-build or resale. Currently, transfer tax of around 7% is applied on resales, which includes stamp duty. For new-build properties on Formentera, VAT (IVA) of 7% is payable in addition to 1% stamp duty
On top of this there is also plusvalia (capital gains tax), which is set by the local authorities and depends on the area concerned and the amount of profit being made on the sale. This is usually paid by the seller
If the buyer is purchasing land or commercial property rather than residential, VAT is 16% as opposed to 7%. Stamp duty remains the same
Most Spanish lawyers charge around 1% of the final purchase price, and notary fees are around 0.5%
Agents’ fees can vary anywhere between 2% and 15% – so be careful not to be ripped off

Getting there

There are no flights to Formentera, you’ll need to fly to Ibiza and get the ferry.

There's also a range of articles for you to read about buying property in Spain:

as well as overseas news stories affecting the property market in Spain or view our range of property for sale in Formentera.