The property market in Ibiza is characterised by limited supply, high value stability and one of the most sought-after locations in Spain. The Balearic Islands offer a €3 million wealth tax allowance; with the right structuring, this is fiscally attractive. Financing for non-residents covers up to 70 % of the lower of the purchase price and the tasación; the remaining 30 % and the purchase costs of 10–13 % must be covered by equity.
The Balearics' progressive ITP runs from 8% and in several tiers up to 13% in the higher price bands. Budget around 11 to 13% in total costs. Banks finance the purchase price, not the incidental costs, and lend against the lower of purchase price and tasación, so you cover the ITP from equity.
Not every bank lends against income in a foreign currency — we approach the ones that do. For the full evaluation, enter your income converted into euros.
Our brokerage focus starts at a loan amount of around €300,000 — we arrange smaller loans too and will give you an honest read on whether it makes sense in your case.
Estimate, no guarantee. The interest rate is the calculation basis for this example, not a market rate or commitment — the rate you actually achieve depends on your credit profile, the property and the bank. Spain: max. 70 % LTV for non-residents. Purchase costs by region as on our purchase-costs page; the other items are guide values.
To buy property on Ibiza, non-residents borrow up to 70% and pay the 8–13% ITP from their own funds.
The ITP is the largest single cost item; reckon on around 10 to 13 % in purchase costs overall, correspondingly more in prime locations. With high-priced properties in particular, it pays to work out the tax band before the private contract. As of 07/2026.
Three financings a branch cannot handle: Spanish banks only pay for a new build once it has been signed off (Bauabnahme), they finance purchases but not equity release, and they cannot value a German property. Of the 30+ institutions on the market, one finances the stage payments during construction and two lend against unencumbered existing property (Perini Market Check, as of 08.10.2026).
Supply on Ibiza is tight island-wide, hence rising prices. Spanish banks lend non-residents up to 70% loan-to-value, and 30–40% equity plus 10–13% costs is realistic.
Two typical Ibiza scenarios in the upmarket island market — as guidance for your own plan.
Calculate your costs quickly: Pre-filled with typical values for this region — just adjust the figures and the calculation updates instantly; the region and tax rate are already set.
Full analysis by email: Everything that the calculator on the page does not show: equity requirement including purchase costs, all purchase costs listed individually, total interest and total costs — and, based on your income, how much you can afford under the 35 % rule. We work with 15–20 out of over 30 banks and will make enquiries with at least 2 of them regarding your situation; we’ll discuss which ones are suitable during our conversation.
Everything the calculator does not show on the page: equity needed including purchase costs, every cost item, total interest and total cost — and, with your income, how much you can afford under the 35 % rule.
We approach at least 2 of the 15–20 banks we work with for your case; which ones fit, we discuss in person.
Sample calculation for Ibiza: New-build villa from a developer in Es Cubells, €4,500,000, 24-month construction period. Without a structure, you’ll need to pay €1,350,000 out of your own pocket until the Escritura. With payments made as construction progresses, the figure is €405,000 — otherwise the Spanish bank only pays out at the notary.
A model calculation, not a case report — the assumptions and cross-checks are set out in full on the structure page.
What you’ll have to pay out of your own pocket in Ibiza: Ibiza is part of the Balearic Islands and is therefore subject to the tiered ITP under Decreto Ley 4/2023 — the rate increases in line with the purchase price.
As prices in Ibiza are at the higher end of the scale, a typical purchase regularly falls into the higher bands, and the tax is higher both in absolute and relative terms than on the mainland. It is not financed: the bank lends against the property, not the acquisition costs.
On top of that, there are the notary, Registro, Tasación and your own legal representation. If you submit your finance application before making a reservation rather than afterwards, you’ll see this figure in good time — and can negotiate the purchase price with a reliable figure in mind.
Mallorca: The most popular destination for Germans in Spain.
Mortgage requirements: What you need for a non-resident mortgage.
Procedure and sequence: Why the condición suspensiva is the lever.
View calculation example: stage payments during the construction period
Ibiza falls under the same Balearic rules as Mallorca and Menorca — what counts is where the property lies, not where the owner lives. A paid-off property in Ibiza does not have to be sold to free up capital — it can be mortgaged instead.
Inheritance tax, Balearic Islands: 100% relief on the tax due, with no cap, since 18.07.2023 — groups I and II, meaning parents, children and spouses (Decreto Ley 4/2023, confirmed by Ley 11/2023). Ley 11/2023 makes clear that the relief applies to non-residents as well.
For inheritance, the rules of the autonomous community holding the highest value of the Spanish estate apply. With a single Spanish property that is simply its region. The relief must be claimed within the filing deadline — miss it and it becomes contentious.
How far a Spanish bank will go on an unencumbered property, what changes with the owner's age, and what the released money may be used for is set out in full under releasing capital from a Spanish property.
A gift of the released money to a child is taxed in Germany, not in Spain — see inheritance and gift tax in Spain. Scope: inheritance tax, groups I and II (parents, children, spouses). Regional tax law changes regularly.
What was actually paid in this area. Portal prices are what sellers ask. What was recorded at the notary is published by the Spanish notaries themselves: the Portal Estadístico del Notariado — free, no registration, and searchable down to postcode level.
In the first quarter of 2026 the prices paid ran 29 per cent below asking prices, the widest gap since 2007. For a mortgage that is the figure that counts: the bank's valuer works from completed sales, not from listings. → Portal Estadístico del Notariado · What that means for your financing · Where the numbers come from
Mallorca — mortgage for non-residents: Financing in the region.
Valencia & Costa Azahar — mortgage for non-residents: Financing in the region.
Portugal — mortgage for non-residents: Algarve, Madeira, Lisbon and Porto at a glance.
| Item | Amount |
|---|---|
| Equity | €340,000 (40%) |
| Mortgage | €510,000 (60%) |
| Purchase costs (~12%) | ~€100,500 (Balearic ITP is banded — around 8.8% here) |
| Loan-to-value | 60% LTV |
| Example payment (20 yrs, 2.4%) | ~€2,680/month |
| Bank type | Major Spanish bank · non-resident |
| Item | Amount |
|---|---|
| Equity | €750,000 (50%) |
| Mortgage | €750,000 (50%) |
| Purchase costs (~14%) | ~€210,000 (Balearic ITP is banded — 10% here) |
| Loan-to-value | 50% LTV (conservative) |
| Example payment (20 yrs, 2.4%) | ~€3,940/month |
| Bank type | Private bank · wealth management |
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
Due diligence is usually charged by the lawyer, commonly around 1 % of the purchase price; the fee varies. As of 2026; to be confirmed in each case.
Very difficult — a licence freeze has applied on Ibiza since 2018. Anyone who wants to let to tourists should buy a property with an existing ETV licence. A price premium of up to 20% is common.
Balearic Islands tax-free allowance: €3 million per person (as of 2026). Wealth tax is only payable on amounts exceeding this threshold (0.28 % to 3.45 %). This is not an issue for most buyers. Mortgages are deducted from the value of the assets — but, according to the Tribunal Supremo (judgment 167/2023), only if they were taken out for the purpose of purchase or renovation.
Several major Spanish banks finance non-residents on Ibiza; at premium level international private banks come into play. From purchase prices of approx. €500,000, private banks also offer better terms.
6–10 weeks is usual. With private banks (very high purchase prices) possibly longer due to extensive credit assessment. Faster for standard properties and a good credit profile.
Value stability has been above average for decades. Anyone focused on return optimisation will find better places. Anyone seeking a wealth investment with a degree of personal use, who believes in the Ibiza brand, will find one of Europe's most stable addresses here.
Start with an independent mortgage broker rather than a single bank branch — for luxury properties (above approx. €500,000) international private banks often outperform the standard non-resident programmes of the major Spanish banks. Have your income documentation, tax returns and a proof-of-funds statement ready before making an offer; credit assessment at private banks is more thorough and takes longer.
Use the mortgage calculator further down this page — it covers the purchase price, ITP transfer tax (8–13% tiered on the Balearics), notary, land registry, lawyer and NIE fees, giving you the total investment and required equity in one result, not just the loan amount.
The Ibiza property transfer tax ITP is levied at the Balearic Islands scale: 8 % up to €400,000, 9 % between €400,000 and €600,000, and 10 % on the portion above €600,000.
Planning a purchase on Ibiza? A free initial consultation in English — also German, French, Spanish, Russian. We review your situation and find the right bank in Spain.
This is not tax advice.
The regional licence, the national registration number — and what the owners' association may decide.
Monthly payment, loan and purchase costs by region straight away; total cost and equity needed by email.
Content by Siegfried Perini — local brand representative since 2019, active in real estate since 1992, entered in the German intermediary register (§ 11a GewO) as a person directly involved in brokerage and advice. Point of contact for German-speaking buyers in Spain and Portugal. Brokerage by Olga Nikushkina, mortgage credit intermediary under § 34i German Trade Regulation (GewO); in Portugal through a locally licensed intermediary.