Selling property in Ibiza
With high prices, the 3% retained by the buyer from a non-resident seller is a large sum, and so is any refund due. Timing also matters in Ibiza: residents selling their main home may be exempt if they reinvest, and the choice between selling before or after a change of residence can change the tax substantially. We model the options before you sign.
The taxes of a sale
| Tax | Who pays | When |
|---|---|---|
| Capital gains tax | Seller | Non-residents within four months; residents in the annual return |
| 3% retention | Buyer, on the non-resident seller's account | Within one month |
| Plusvalía municipal | Seller | Within 30 working days |
| IBI of the year | Usually split by days | At completion |
How we help sellers
We calculate the gain and the net proceeds before you agree the price, review the invoices that reduce the gain, file the plusvalía and the capital gains return after the sale, and claim back the 3% when it exceeds the tax. We work alongside your lawyer and the notary so completion goes smoothly.
Our general service page explains the rules in more detail: Tax on selling property in Spain. We also advise in Mallorca, Menorca.
An illustrative example
Based on situations we commonly see; not a specific client. A German owner planned to leave Ibiza and sell her main home. We showed that selling while still resident, with reinvestment in a new main home in Germany, left the gain exempt, whereas selling after leaving would have cost 19%.
This page is published by Castell.tax, the tax practice of Castell.law in Palma de Mallorca. It is general information; tax rules and rates change, so check your case with us before filing.
Not sure what you owe? Ask before the deadline
Send us your situation or the letter you received. A tax adviser will tell you what applies, what it could cost and what to file.
Frequently asked questions
How much is the 3% retention on an Ibiza villa?
3% of the price, which is credited against the tax or refunded.
Can I reinvest abroad and avoid tax?
Residents can reinvest in a main home in the EU or EEA, subject to conditions.
How much tax will I pay when I sell my home in Ibiza?
It depends on the gain; we calculate it before you sign.
Can I recover the 3% retention?
Yes, if it exceeds the tax due on the gain.