Taxes on the purchase
| Property | Main tax | Notes |
|---|---|---|
| Resale home or country house | Transfer tax (ITP) | Balearic progressive rate starting at 8% and rising with value |
| New-build home | VAT 10% + stamp duty (AJD) | On the first sale by the developer |
| Plots and commercial premises from a business | VAT 21% + stamp duty | Depending on seller and property |
Your lawyer calculates the exact transfer tax before you commit, as the band depends on the price.
Notary, registry and legal fees
Notary and Land Registry fees follow official scales and depend mainly on the price. Legal fees are agreed freely: many firms quote a percentage plus VAT, others a fixed fee. A complete quote should cover due diligence, contracts, NIE, completion, taxes and registration.
Mortgage costs
The bank charges a valuation and may charge other fees; under current law most notary and registry costs of the mortgage deed are borne by the bank.
Non-resident sellers
If the seller is not resident in Spain, you must withhold 3% of the price and pay it to the tax office. It is not an extra cost, but failing to pay it can make you liable for the seller's tax.
Yearly costs in Menorca
| Cost | Who pays |
|---|---|
| IBI | All owners |
| Waste collection tax | All owners, by municipality |
| Non-resident income tax | Non-residents, on imputed or rental income |
| Wealth tax | Owners above the thresholds |
| Community fees | Apartments and developments |
When you sell
Sellers pay capital gains tax and the municipal plusvalía; purchase costs usually reduce the taxable gain. See selling property in Menorca and the guide to buying in Menorca. Published by Menorca.law, part of Castell.law.
An illustrative example
Based on situations we commonly see; not a specific client. A buyer of a resale country house near Alaior had budgeted only for the price. Our estimate added transfer tax, notary, registry, legal fees and mortgage valuation. Knowing the full figure before the arras contract, the buyer adjusted the offer and the mortgage request.
Other costs to plan for
Beyond taxes and fees, budget for an architect's survey on older houses, sworn translations if documents are in another language, the NIE and powers of attorney, bank charges for international transfers, utility connections and, for country houses, possible works on wells or septic systems. On a resale purchase, also check the IBI and community receipts so that debts are not passed on to you.
Before you sign or pay, ask a lawyer
Send us the document, the listing or a short summary of the problem. A lawyer will tell you what matters, what it could cost you and what to do next.
Frequently asked questions
How much is transfer tax in Menorca?
It follows the Balearic progressive scale starting at 8%; your lawyer calculates the exact amount.
Do new builds pay transfer tax?
No; the developer's first sale pays VAT and stamp duty.
Who pays the notary?
Usually the buyer, unless agreed otherwise.
Do non-residents pay tax every year?
Yes, non-resident income tax on their Spanish property, even if not rented.