Buying on Ibiza follows the Spanish process, but the checks that matter are local. The steps are the same as anywhere in Spain: a tax number, a lawyer, a reservation, a deposit contract, the deed before a notary and registration. What makes Ibiza different is what your lawyer has to check before you commit: whether every part of a country villa was built with a licence, whether it can still be let to holidaymakers after the 2025 rules, and how it gets its water. This guide takes international buyers through each step in order.
Nothing happens without it
The usual arras contract
Completion by public deed
Licences, letting, water
Last updated: October 2026
By: Alexander Thornbury
What do you need before you start?
A Spanish tax number, a lawyer of your own and a Spanish bank account. The tax number, the NIE, is needed for the deed, the taxes and the utilities, so apply for it first. Your lawyer should be independent of the agent and the seller: they run the checks, draft or review the contracts and handle the payments to the tax office. A Spanish account makes paying the taxes and the running costs simpler.
If you’re borrowing, start with the bank early. Spanish lenders do lend to non-residents, usually at lower loan-to-value ratios than to residents, and many buyers at prime prices pay cash. Either way, decide before you reserve, because the deposit contract sets a completion date you have to meet. Our main Ibiza guide sets out what the purchase costs in total.
How do the reservation and deposit work?
In two stages. Once you agree a price, a small reservation payment, often around 1%, takes the property off the market while your lawyer starts the checks. Then comes the arras contract, the private deposit agreement, with a deposit that is usually 10% of the price. Under the Civil Code’s penitential arras, a buyer who walks away loses the deposit, and a seller who pulls out pays it back twice over.
That makes the arras the real point of commitment, so don’t sign it before your lawyer’s checks are done. The contract should set the price, the completion date, what is included and what happens if a licence or registration problem comes to light. Agree in writing who pays for any legalisation work the checks turn up.
| Step | What happens | What you pay |
|---|---|---|
| 1. NIE, lawyer, bank account | Set up before you make an offer | Legal fees agreed with your lawyer |
| 2. Reservation | Property off the market; checks begin | Often around 1% |
| 3. Arras contract | Binding deposit agreement, completion date set | Usually 10%, less the reservation |
| 4. Deed at the notary | Ownership passes; balance paid | The balance; 3% withheld if the seller is non-resident |
| 5. Taxes and registration | Transfer tax paid, deed registered | ITP 8% to 13%, or 10% VAT plus 2% stamp duty on a new build |
What should your lawyer check on Ibiza?
The usual Spanish checks, and three that matter more here. The usual ones: that the seller owns the property, that no mortgage or charge is registered against it, that the land registry, the Catastro and the house on the ground all match, and that the IBI and any community fees are paid up. On Ibiza, start with the licences. Many of the island’s villas sit on rustic land, where an extension, pool or outbuilding put up without a licence becomes the buyer’s problem. The island council opened a three-year window in April 2025 to legalise existing works that meet its conditions, so find out whether anything needs it and who pays.
Then the letting position. Since 2025, no new tourist places can be created in apartment buildings anywhere in the Balearics, and no home on rustic land built after 1956 can be let to tourists on Ibiza. If letting matters to you, confirm the property already holds a valid registration, for how many places, and that it passes with the sale. Finally, water: ask how the house is supplied, and whether its pool is licensed, because the 2025 plan change bars new pool licences where the aquifer is in poor condition.
| Check before the arras | Why it matters on Ibiza |
|---|---|
| Title and charges (land registry extract) | Confirms the seller owns it and nothing is secured on it |
| Registry, Catastro and the house all match | Extensions are not always recorded on country villas |
| Licences for every building and the pool | Unlicensed works pass to the buyer; a legalisation window runs from April 2025 for three years |
| Tourist registration | No new places in apartment buildings; none on rustic land for homes built after 1956 |
| Water supply and pool licence | No new pool licences over aquifers in poor condition |
| IBI and community fees paid | Debts can follow the property |
What happens at the notary?
Completion. Buyer and seller, or their representatives, sign the public deed, the escritura, before a Spanish notary, and you pay the balance, usually by banker’s draft or bank transfer arranged through your lawyer. The notary checks identities, reads the deed and confirms the payments, but acts for neither side, which is why you need your own lawyer.
Two payments go to the tax office on the seller’s behalf if the seller is not resident in Spain. You withhold 3% of the price as an advance on their capital gains tax. If the seller is a non-resident individual, you are also responsible for the municipal plusvalía on the land, so that amount is held back from the price too. After signing, your lawyer pays the transfer tax and registers the deed at the land registry, which is what protects your ownership against third parties.
What do you pay, and when?
Most of it at completion. On a resale you pay ITP, the Balearic transfer tax, which runs from 8% to 13% in bands: EUR 275,000 on a EUR 2.5M villa and EUR 600,000 on EUR 5M. On a new home from a developer you pay 10% VAT instead, plus 2% stamp duty once the value reaches EUR 1M. The tax falls on the higher of the price and the Catastro’s reference value. Notary and registry fees are small next to the tax, and your lawyer’s fee is agreed in advance.
After that come the running costs: non-resident income tax, the municipal IBI and, in the Balearics, wealth tax on Spanish assets above EUR 700,000. Our Ibiza property tax guide works through each one with figures.
Can you buy without being there?
Yes. You can give your lawyer a power of attorney, signed before a notary at home and legalised for use in Spain, and they can sign the deed for you. Many international buyers come for the viewings and the reservation, then complete remotely. Spend the time on the island before the arras, not after it.
Buying doesn’t give you the right to live on Ibiza; our residency guide covers that separately. If you’re still choosing where to buy, our guide to Ibiza’s prime areas compares the island’s municipalities, and British buyers will find the extra steps in our guide for buyers from the UK.
Key takeaways
- Get the NIE, an independent lawyer and a Spanish account before you make an offer.
- The arras contract is the real commitment: usually a 10% deposit, lost if you walk away, repaid twice over if the seller does.
- On Ibiza, check licences, letting and water before you sign the arras.
- Completion is a public deed before a notary, then registration at the land registry.
- Withhold 3% for the tax office if the seller lives outside Spain.
- You can complete through a power of attorney without being on the island.
Frequently asked questions
What is the first step to buying property in Ibiza?
Getting a Spanish tax number, the NIE, and appointing an independent lawyer. The NIE is needed for the deed, the taxes and the utilities, and the lawyer runs the checks before you commit.
How much deposit do you pay to buy in Ibiza?
Usually 10% of the price under an arras contract, often after a smaller reservation payment of around 1%. A buyer who withdraws loses the deposit; a seller who withdraws repays it twice over.
What is an arras contract?
The private deposit agreement signed before completion. It fixes the price and the completion date, and under the Civil Code’s penitential arras the deposit is forfeited by a buyer who pulls out or repaid double by a seller who does.
Why do licences matter so much on Ibiza?
Because many of the island’s villas sit on rustic land, where extensions, pools or outbuildings built without a licence become the buyer’s problem. The island council opened a three-year legalisation window in April 2025 for works that meet its conditions.
Can I let a villa I buy in Ibiza to tourists?
Only if it already holds a valid tourist registration that passes with the sale. Since 2025 there are no new places in apartment buildings, and no tourist lets on rustic land for homes built after 1956.
What does the notary do?
Witnesses and formalises the public deed, checks identities and confirms the payments. The notary acts for neither party, so you still need your own lawyer.
What is the 3% withholding when buying in Spain?
If the seller is not resident in Spain, the buyer withholds 3% of the price and pays it to the tax office as an advance on the seller’s capital gains tax.
Who pays the plusvalía tax on an Ibiza sale?
The seller owes it. If the seller is a non-resident individual, the buyer becomes responsible for paying it, so the amount is normally held back from the price at completion.
Can I buy a property in Ibiza without travelling there?
Yes. A power of attorney signed before a notary in your own country and legalised for Spain lets your lawyer sign the deed on your behalf.
Can non-residents get a mortgage in Ibiza?
Yes. Spanish banks lend to non-residents, usually at lower loan-to-value ratios than to residents. Arrange it before you sign the arras, because the completion date is fixed in the contract.
When does the property become legally mine?
Ownership passes when the deed is signed before the notary. Registering it at the land registry afterwards protects your ownership against third parties.
Sources
- BOE – Spanish Civil Code (art. 1454, penitential arras)
- BOE – Non-Resident Income Tax Act, Royal Legislative Decree 5/2004 (3% withholding on purchases from non-residents)
- BOE – Local Finance Act, Royal Legislative Decree 2/2004, art. 106 (plusvalía: buyer as substitute taxpayer)
- BOE – Balearic Legislative Decree 1/2014 (ITP and stamp duty rates)
- BOE – VAT Act, Law 37/1992 (10% on new homes)
- Govern de les Illes Balears – Decree-Law 4/2025 on tourism containment
- Consell d’Eivissa – Final approval of modification no. 2 of the Ibiza territorial plan (1 August 2025)
- BOIB no. 106, 9 August 2025 – publication of the Ibiza territorial plan modification
Figures current at October 2026. Confirm the process and every check with your own Spanish lawyer before you sign.
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.