Buying Guide Details

Buying Property in Ibiza

Where to buy property in Ibiza

Buyers looking for a property in Ibiza will find the island has a split personality: hedonistic and wild in its popular summer resorts but calm, rural and scenic elsewhere, with property prices to match. The fantastic climate, excellent beaches and infamous nightlife, together with a generally very sensitive approach to property development, keep prices in Ibiza among the highest in Spain.

Ibiza Town (Eivissa) has a wonderful, medieval Old Town area of winding alleys and whitewashed properties with great rental potential. It is one of the main tourist locations on the island, home to some of the superclubs and well-located to reach the other beach resorts of the south coast such as Platja d’en Bossa and its family-friendly water park, Aguamar.

Most of the package holiday crowd head for San Antonio (Sant Antoni) in the northwest. There are some excellent, and quieter, resorts in the east, including Santa Eulalia del Rio and Cala Llonga. The coastline between here and Ibiza Town is one of the most coveted property locations on the island. Portinatx, at the island’s northern tip, is an up-and-coming hotspot. The islands picturesque interior offers rural seclusion in stark contrast to the big beach destinations.

Restrictions on development mean that the island is still largely unaffected by poor quality, high-density construction. It is this unspoilt quality that helps to fuel the buoyant property market and high prices on the island.

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The Process of Buying Property in Ibiza

Anyone wishing to buy (or sell) a property in Ibiza 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 in Ibiza 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 in Ibiza
Taxes payable depend on whether the property in Ibiza being purchased is new-build or resale. Currently, transfer tax of around 7% is applied on resales, which includes stamp duty. For new-build property in Ibiza, 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 flights to Ibiza direct from all over the UK.

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