Tight supply, high value stability, one of Spain's best addresses. Balearics wealth-tax allowance €3m — tax-attractive when structured correctly.
Very difficult — a licence freeze has applied since 2018. To let, buy a property with an existing ETV licence; a price premium of up to 20% is common.
Major Spanish banks finance non-residents up to 70% of the lower of purchase price and tasación.
From around €1.5m, international private banks offer better terms.
Ibiza belongs to the Balearics, which levy a progressive ITP — from 8 % and, in several tiers, up to 13 % in the higher price bands. As Ibiza is one of Spain's most expensive property markets, many properties reach the higher tiers; the effective rate here is often well above the 8 % entry point. One offset: the Balearics grant an increased wealth-tax allowance of €3m per person. The ITP is the largest single item; budget around 11 to 13 % in total costs, more in premium locations. Important for financing: banks finance the purchase price, not the incidental costs, and lend against the lower of purchase price and tasación — you cover the tiered ITP from equity. Especially for high-priced properties it pays to calculate the tax tier before the private contract. As of 07/2026.
Ibiza Town (Eivissa) — the cultural centre. Santa Eulària des Riu — a family-friendly premium segment. Sant Josep de sa Talaia — exclusive villas, Cala Tarida, Cala Vadella. Supply is tight island-wide, hence rising prices.
Spanish banks: up to 70% loan-to-value for non-residents. On Ibiza often valued more conservatively — the tasación can come in below the purchase price. 30–40% equity plus 11–13% costs is realistic.
Wealth-tax allowance in the Balearics region: €3m. Even a €2m villa stays below the tax threshold. Unlike Andalusia (effectively €0 wealth tax), Ibiza is nonetheless more attractive than Catalonia (€500,000 allowance).
Tourist letting only with a valid ETV licence (Estancias Turísticas en Viviendas). On Ibiza a licence freeze since 2018 — existing licences are valuable, a purchase-price premium is common.
Direct flights May–October to Cologne, Düsseldorf, Munich, Berlin. Off-season mostly via Madrid/Barcelona — slightly less well connected than Mallorca.
British, German, US and Dutch buyers dominate. Price per square metre: €5,000–15,000/m² in top locations.
Concrete sample calculations for typical foreign buyers — as a guide for your own plan.
| 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, 3.2%) | ~€2,815/month |
| Bank type | Major Spanish bank · non-resident |
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
| 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, 3.2%) | ~€4,140/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.
Pre-filled with typical values for this region — adjust and calculate.
Guide value without guarantee. Spain: max. 70%, Portugal: max. 80% loan-to-value for non-residents. Purchase costs = ITP/IMT + notary + land registry + lawyer + NIE/NIF. Total outlay = equity + purchase costs + all payments over the term. For a binding offer, contact us.
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
The complete breakdown with your exact figures — loan, equity required, total interest — straight to your inbox.
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.
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. This is not tax advice; Inheritance tax, groups I and II (parents, children, spouses). Autonomous tax law changes; review quarterly.
Planning a purchase on Ibiza? A free initial consultation in English — also German, French, Dutch, Spanish, Russian. I review your situation and find the right bank in Spain.
Monthly instalment, total cost and equity requirement for your exact figures.