German buyers get one of the cleanest tax positions of any nationality on Ibiza, with one large exception. The Spain-Germany treaty leaves the rental income and the gain on a Spanish home to Spain, so the Finanzamt largely steps back. Inheritance is the exception: German inheritance tax reaches the villa in full, and the Balearic relief does nothing to stop it. Germans made 6.11% of all foreign home purchases in Spain in the second quarter of 2026, and Germany sent 694,734 passengers to Ibiza in 2025. This guide is for German buyers of prime homes on the island.
Germany-Ibiza passengers, 2025
Rent and gains taxed in Spain
Spanish tax on net rent and gains
German inheritance tax still applies
Last updated: October 2026
By: Alexander Thornbury
What does Spain charge a German owner?
EU rates, set out below, and in practice they are the main tax you’ll pay on the property, because the treaty sends both the rent and the gain to Spain. The line that surprises German owners is the annual wealth tax: Germany hasn’t levied one since 1997, but the Balearics charge it in full above EUR 700,000. Our Ibiza property tax guide works through every line.
| Spanish tax for a German owner (2026) | Rate |
|---|---|
| Transfer tax on a resale | 8% to 13% in Balearic bands: EUR 600,000 on EUR 5M |
| New build | 10% VAT plus 2% stamp duty from EUR 1M |
| Home kept for own use | 19% of a notional 1.1% of cadastral value |
| Rental income | 19% of the net rent |
| Gain on sale | 19%, with 3% of the price withheld by the buyer |
| Wealth tax | Spanish assets above EUR 700,000: about EUR 53,500 a year on EUR 5M |
What does Germany tax on an Ibiza home?
Less than most German buyers expect. Under the Spain-Germany double tax treaty, signed on 3 February 2011 and in force since 18 October 2012, rental income from Spanish property is taxed in Spain under Article 6, and Germany doesn’t tax it again. It does apply the progression clause, the Progressionsvorbehalt: the exempt Spanish rent is counted only to set the rate on your other German income, which can nudge that rate up.
The gain on a sale is taxed only in Spain, under Article 13(1). Germany has no taxing right over it, even when the seller lives in Germany. So you declare the Spanish rent at home for the progression calculation, but you pay the tax on the property itself in Spain.
| Tax on the Ibiza home | Spain | Germany (if German-resident) |
|---|---|---|
| Rental income | 19% of net rent | Exempt, but counted for the rate (progression clause) |
| Gain on sale | 19%, with 3% withheld at completion | No taxing right (Article 13(1)) |
| Wealth tax | Above EUR 700,000 | None |
| Inheritance | Close family: 100% Balearic relief | German inheritance tax on worldwide assets, with credit for Spanish tax |
Does the 10-year rule apply?
Not in the way it does at home. In Germany, a private property sold within 10 years of purchase is taxed on the gain, and one held longer is tax-free: the Spekulationssteuer. Because the treaty gives the gain on a Spanish home to Spain alone, that German rule doesn’t reach your Ibiza villa. Spain’s 19% applies however long you have owned it.
That cuts both ways. A German owner who sells a Spanish villa after 12 years still pays Spanish tax on the gain, where a German property would be tax-free. Purchase costs and documented improvements reduce the taxable gain, so keep the invoices from the start.
How does German inheritance tax reach the villa?
In full, and this is the part German buyers most often miss. German inheritance and gift tax, the Erbschaftsteuer, covers worldwide assets where either the person who dies or the heir is resident in Germany, so a villa on Ibiza is in scope. There is no separate inheritance tax treaty between Germany and Spain. Under Section 21 of the German inheritance tax act, Germany credits any Spanish inheritance tax paid on the Spanish asset.
Here the Balearic relief works against intuition. Since July 2023, children, spouses and parents get 100% relief from Balearic inheritance tax, so there is no Spanish tax to credit, and the German bill falls in full. German citizens should also know the extended rule: someone who has lived abroad for less than five continuous years can remain within unlimited German inheritance tax liability. Plan ownership and the will with advisers on both sides before you buy.
Can you move to Ibiza?
Yes, freely. As EU citizens, Germans live on the island by right, registering after three months for a registration certificate. Buying property brings no residence rights since Spain closed its golden visa in April 2025, but a German buyer doesn’t need them.
Moving changes the tax basis. More than 183 days a year in Spain, or a move of your economic centre, makes you Spanish tax-resident, taxed on worldwide income, with worldwide assets in the Balearic wealth tax above a EUR 3M allowance. Our residency guide runs through what changes.
What should a German buyer plan for?
Three things: the Spanish wealth tax, which Germany doesn’t have; the inheritance position, where the German bill is the one that counts; and the local checks every Ibiza villa needs. On rustic land, confirm that every part of the house and the pool is licensed, and that it holds a valid tourist registration if you plan to let, since no home on rustic land built after 1956 can be let to tourists on Ibiza.
Our buying guide sets out those checks step by step, our prime areas guide covers where to look, and our main Ibiza guide covers the market.
Key takeaways
- Germany is one of Ibiza’s biggest markets: 694,734 passengers in 2025 and 6.11% of Spain’s foreign home purchases.
- The 2012 treaty leaves rent and gains to Spain; Germany only counts the rent for the rate.
- The German 10-year rule doesn’t apply to the Spanish villa; Spain’s 19% does.
- Spanish wealth tax is a new cost: about EUR 53,500 a year on EUR 5M of net Spanish assets.
- German inheritance tax reaches the villa in full, because the Balearic relief leaves no Spanish tax to credit.
- EU citizens move freely; 183 days makes you Spanish tax-resident.
Frequently asked questions
Can Germans buy property in Ibiza freely?
Yes. EU citizens face no restrictions. All you need is a Spanish tax number, the NIE, and preferably a lawyer of your own.
Is rental income from an Ibiza villa taxed in Germany?
No. Under the treaty it is taxed in Spain, at 19% of the net rent. Germany counts it only to set the rate on your other income, through the progression clause.
Does Germany tax the gain when I sell my Ibiza home?
No. Article 13(1) of the treaty gives the gain to Spain alone, which taxes it at 19%.
Does the German 10-year speculation rule apply to a Spanish property?
Not to the gain on a Spanish home, which only Spain can tax. Spain charges 19% however long you have owned it.
Do German owners pay Spanish wealth tax?
Yes, on Spanish assets above EUR 700,000. That works out at about EUR 53,500 a year on EUR 5M of net Spanish assets. Germany has no wealth tax to offset.
Does German inheritance tax apply to a villa in Ibiza?
Yes, where the deceased or the heir lives in Germany. Germany credits Spanish inheritance tax under Section 21 of the inheritance tax act, but the Balearic relief usually leaves no Spanish tax to credit.
Is there an inheritance tax treaty between Germany and Spain?
No. Relief for double taxation comes from German domestic law, Section 21 of the inheritance tax act.
Do Germans need a visa to live in Ibiza?
No. As EU citizens, Germans can live in Spain freely, registering after three months.
When does a German owner become Spanish tax-resident?
Once they spend more than 183 days a year in Spain, or their main economic interests are there.
How many Germans fly to Ibiza?
Germany was Ibiza airport’s third-largest international market in 2025, with 694,734 passengers.
What tax does a German buyer pay to buy in Ibiza?
The Balearic transfer tax on a resale, 8% to 13% in bands, or 10% VAT plus 2% stamp duty on a new build from EUR 1M, the same for every buyer.
Sources
- BOE – Spain-Germany double tax treaty, signed 3 February 2011, in force 18 October 2012
- Gesetze im Internet – Inheritance tax act, Section 21 (credit for foreign inheritance tax)
- BOE – Non-Resident Income Tax Act, Royal Legislative Decree 5/2004
- BOE – Balearic Legislative Decree 1/2014 (transfer tax, wealth tax, inheritance relief)
- EUR-Lex – EU Succession Regulation 650/2012
- Aena – Ibiza airport 2025, passengers by market
- Colegio de Registradores – foreign buyers by nationality, Q2 2026
- Agencia Tributaria – Wealth tax for non-residents (EUR 700,000 allowance)
Figures current at October 2026. Take German and Spanish advice before you buy.
About the author
Alexander Thornbury is a published author who writes on international property, tax and residency for high-net-worth buyers across Europe. His work focuses on the practical mechanics of cross-border purchase: what a buyer actually pays, owes and signs. More at alexanderthornbury.com.