Buying a Property in Ibiza with Bazaar Estate

Ibiza Island has remained a highly demanded location for a "home away from home". Since the recent announcement of the Ibiza clubs reopening in April 2022, we are expecting the demand to rise to an incredible height. Some say that this Summer will be our Best Season Yet. Apart from the obvious Mediterranean luxury, Ibiza had always enveloped us with her indescribable magic which we  can never get enough of. 

If you are one of the luckiest people who have connected and fallen in love with Ibiza magic, its notorious social scene and "larger than life" lifestyle, beginning to look at a property to buy in a foreign country as a foreigner can seem intimidating at first, as Ibiza is an independent kingdom that writes its own laws and regulations. 

The key to a successful purchase is a reputable local property agent, like BAZAAR ESTATE. 

At BAZAAR ESTATE we are dedicated to providing a complete spectrum of services from property search, legal process until the moment of you receiving the keys to your new castle.

When you reach out to us our first meeting is designed to discover your dream Ibiza Lifestyle and find a home which perfectly suits your vision. Based on the assessment of your preferences and budget BAZAAR ESTATE will begin to prepare your personal property portfolio.

Our Portfolio at BAZAAR ESTATE consists of 250+ handpicked and carefully curated villas. Our contacts are direct and exclusive. You will find island gems that no other agency will offer to you.

When you’re moving to Spain from a foreign country you may not have had a full immersive Ibiza experience, yet.  In a few words you can describe it as: a socialite’s delight with a business network to boast, surrounded by over 300 beaches with some of the best entertainment in the world as well as an unforgettable gastronomic tour available on demand. When you buy a home in Ibiza you also buy access to the most envied social circles of our time.

Types of Properties You can Expect to Find on the Island of Ibiza 

Front line Beach properties – ranging  from apartments, detached and semi detached houses and villas. Interior design varies from "Country Chic" to "Elegant Minimalism".

Rural finca or Farm–  is the perfect choice for countryside lovers, who adores country chic and desire to enjoy the agricultural abundance of the giving soil of Ibiza that bears the fruit of home grown avocados, oranges and lemons, fig trees, pomegranates and more. Blackstad, our famous island architects take the lead in preserving the authentic Ibiza style, while tastefully merging it with your unique character. 

State of the Art Super Villas – Constructed with internationally renowned architects, facing roaring sunset sea views, remarkable floor planning and unexpected interior pieces. Usually include contemporary entertainment areas such as swimming pools, indoor gym, cinema and more often than not, your very own private night club. 

New developments – edificios are a perfect choice if you are looking for an apartment or penthouse where the pool and garden maintenance is included as well as other amenities such as gym area and tennis courts as well as a short walk to a local beach and the pueblo.

Finca 70s – makes for a perfect renovation project. Ideal to flip, these series of houses were built in the 70’s, all look alike with thick walls, the dark wood finish and a warm tile. 

Legal Advice

Our personal advice for you to hire a local lawyer as Ibiza has its own rules and regulations, different from mainland and all areas. Do not go into Ibiza with a lawyer from Mainland thinking that they will be useful. Ibiza is known to be an alternative island, where the same rules apply.

NIE number is a personal identification number assigned to every expat in Spain. It includes a personal tax code as well as social security number. It will be used during your property purchase, tax payments or while opening a business. Our lawyer will assist you in receiving the NIE number.

Due diligence must be carried out before the signing the reservation contract, as the sum will not be returned.

Necessary check points include: the current legal status of your property, making sure that the property is free of debts, ensuring that there are no outstanding debts on the utilities and the legality of original construction. Due to ongoing reforms in the law you must always carry out your due diligence before signing the contract.

Reservation contract reserves your right to purchase the property. The cost of this contract delivery is calculated at 10% of the total property price. Payment is made during the signing of the reservation contract, certain clauses are open for negotiation. This 10% is considered an advance on the agreed price of the sale. Your chosen legal representative will be overseeing the completion of this process.

Notary fees will vary based on the price of your property approx. 600€ – 875€. At this stage you will need to pay the outstanding balance of the property and receive your "Nota  Simple". Making you officially the new owner of your Ibiza Fortress.

Public Deed Fees

Usually the seller is responsible for the fees associated with the delivery of the public deed and the buyer is responsible for the payment for the first copy of the deed and other copies.

The property registration fees depend directly on the price of your Ibiza property.

VAT / IVA 

In the sale of a new property, VAT as a general rule amounts to 10%.

Resale tax for used homes Tax on Patrimonial Transmissions (ITP) will depend on the property value and on the locality and autonomous community and is expected to be between 6% and 10%.

Agency percentage is usually included in the sale price and is payable by the owner.

Mortgage expenses are expected to be between 1% and 2.5%. In house mortgage advice is available on demand at BAZAAR ESTATE.

In total we would suggest to calculate an additional cost of 10% -15% into the agreed selling price. 

If you choose to rent your property you will need to obtain a Tourist License and pay a separate tax, that will be calculated based on the yearly income total.

Taxes

BAZAAR ESTATE  will provide a private consultation regarding the tax payment on your chosen property purchase.

If you have questions our team will be happy to answer any of them. Contact us now.