From the moment you arrive in Ibiza, by plane, by boat, or by car, you feel the flow of Love, Peace, and Happiness. Is this the magic of the hippies who took possession of this island in the sixties as a sanctuary for enjoyment, in every possible way? Or is it the spirit of the famous local Pirates of Ibiza that still haunts, as a legacy for an optimal sense of freedom?
On Ibiza, everyone seems to be not worried about anything. And why should you? There are zones to party and dance like you never danced before with world-famous Top DJs that love Ibiza too. But above all Ibiza offers a lot of natural beauty wonderfully clear seawater and romantic creeks and coves. The real Ibiza is therefore the mecca for the weary who want to escape the hectic life on the mainland. For a week, a month, or forever (as long as you have good Internet). It is for a good reason that having a home in Ibiza is a wish for many.
Welcome to Ibiza! Info about home, real estate costs, and tourism
Put a flower in your hair, roll up your trousers to your knees and drink a beer while standing in the sea, listening to a local band plays covers from the sixties. Life can be so beautiful and simple. Ibiza is also a paradise for children; Where can you play on the beach until midnight while your parents are chilling and staring in love at the stars? In Ibiza everyone is chill. This has been the case for many years and will not change in the future.
The tourist industry in Ibiza
The tourists that come to Ibiza come here for a good reason; to enjoy the island. The tourist industry is one of the largest industries on the island; 2019 showed an increase of tourists of almost 5%, making it 338,390 people that visited the island. The British are the majority with 134,795 people. Followed by 42,148 Spanish guests from the mainland. Italy is a good third with 36,251 people and the German are close behind with 36,511 visitors to Ibiza. The Dutch came with 17,569 people and then the French with 12,066. (source The Ibizan)
For your marketing good to know who to aim at when you buy a property in Ibiza and you want to rent it out. If you need some marketing assistance, you can always contact JuniorSenior in the Netherlands. They work for hotels and real state developers and have extensive expertise in getting new clients using the Internet.
Real Estate in Ibiza
Buying a house in Ibiza is almost impossible without an official Ibiza local estate agent and a lawyer. The rules in Spain are more extensive than in the South of France and you will need (and appreciate) the extra expertise of a lawyer. In our network, we have selected partners who do business in the same way as we do business; transparent and professional. There are two markets; the ‘real’ housing market where prices per square meter are in proportion to the apartment or villa offered. But there is also an ‘unreal’ market where a square meter price is no longer the benchmark. Supply and demand rule here. The seller is asking 5 million for a 150 sqm villa because they have paid a similar amount for it. During the sale, the house is rented for a hefty amount, until someone comes along who wants to pay the selling price. Exclusive to Ibiza is scarce and therefore has a high price.
In our offer of a house in Ibiza, we mainly look at the housing market with prices that are comparable to, for example, the Côte d’Azur. For a renovated Finca, a sleek new contemporary villa, or a simple apartment within walking distance of the sea and your favorite beach, you can search our site for the range of houses on Ibiza. Follow us on Facebook too, where the new listings will be placed immediately.
When you find the property of your dreams in Ibiza, the agreed price still has to be adjusted with a maximum of 10-12% on the purchase price to cover all extra costs, depending on your situation and agreements.
Extra fees when you buy a home in Ibiza
Notary expenses
As a buyer, you have to pay 0.5-1% of the purchase price declared in the deeds of sale.
Property registration
Your new house in Ibiza must be registered in the land registry and are calculated in relation to the purchase price declared on the deeds of sale. In general, this is roughly 1% of the purchase price.
Banking costs
To pay for the property, you will need a Spanish bank account. You then transfer money from your home country to the Spanish bank account and transfer the money from the bank in your country. The cost of the transfer can be as much as 0.4%.
Property transfer tax – Impuesto sobre transmisiones patrimoniales (ITP)
This ITP is only applied to second-hand properties. New builds are charged the standard IVA. The ITP is charged at between 8% and 11% depending on the purchase price.
Up to € 400,000 8%
From € 400,000 to € 600,000 9%
From € 600,000 to € 1,000,000 10%
From € 1,000,000 11%
When you buy a new property on Ibiza, you pay another VAT (IVA, Impuesto sobre el Valor Añadido) and Stamp Duty (AJD, Actos Juridicos Documentados). The IVA is the same as VAT / Valued Added Tax.
Currently, the VAT is 10% of the purchase price of residential houses (apartments, houses, villas, etc.). The Stamp Duty is 1.2% of the purchase price. On commercial real estate, land/plots/land, a tax of 21% VAT or 8-11% transfer tax applies, and that depends on whether you are buying from a company or privately.
Local property taxes (IBI) – Impuesto sobre bienes inmuebles
There is no standard rule for these costs. They are fixed by the local town hall (Ayuntamiento) of the area of residence and is calculated on the basis of the notional rental value (Valor Catastral) of the property. You can ask what the previous owner paid.
Mortgage costs
If you need a mortgage, the bank will most likely ask for an expert report to estimate the real value of your Ibiza property. These costs can be around 500-800 euros plus the bank costs for obtaining a mortgage; often 1% of the mortgage.
Legal fees
We advise to always use an independent lawyer to do all the necessary checks on paperwork and agreement. Legal fees usually will cost you around 1% (including VAT) of the purchase price.
We love Ibiza
Contact Ab and Jo for more information about Ibiza properties. We are living on the Côte d’Azur but we love Ibiza just as much! You can find us in Ibiza every summer, searching for new properties like this one. With our local partner, we will set up a meeting for you to visit this property when you come to the magical Island. You can find all the Ibiza flights here. If you miss Ibiza, here are some great Ibiza videos to enjoy the island from a distance.
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