Ibiza was always famous as a tourism destination and then it shaped into becoming the trance capital of Europe and now it is considered as one of the emerging real estate markets in Europe and the world. But if you are planning to buy real estate property in Ibiza then you need to be well informed regarding property costs and taxes. As a standard, around 10% to 11% is added to the cost of a property in Ibiza and Majorca to cover the tax liabilities as well as other miscellaneous costs.

This cost will include IVA, which is the Spanish equivalent of VAT. IVA is calculated at 6% of the actual value of any pre-owned home or at 7% of the actual value of a new real estate property chosen by you. This cost will cover stamp duty (0.5% is charged presently), which is a fee that you will need to pay to the Spanish property registration office. You will also be charged 1% of the sale value of your property as a charge towards the copies of the ‘escritura publica’ as well as legal fees.

Another important thing to note is that if you are buying a particular property from a non-Spanish living in Spain then you will need to deposit 5% of the actual sale price of the property with the local tax office in Mallorca or Ibiza. Situated 52 miles from the Spanish coast, the Balearic Island of Ibiza is in spite of the property taxes and other costs, is still a hot real estate market. It is an island where you will find a healthy mix of the Spanish culture and modern lifestyle. This is one of the biggest reasons why investors are queuing up to buy properties in different parts of Ibiza from the beaches to the mountains.

Properties in Ibiza are from expensive to affordable and it all depends on the type of property, size, and most importantly the location. Most people like to invest in villas overlooking the sea or in apartments and small homes high up in the mountains. Off late, there has been an increase in the price of upper-segment homes but apartments on the Island are still affordable and you can buy a nice 2bed/2bath studio apartment for as less as €100,000. In spite of the recession across world real estate markets, there seems to be a stability in the Real estate in Ibiza and this promises a favorable growth in the years to come.