Ibiza Becomes a Tax Haven for Gifts and Inheritances
After abolishing inheritance tax for close relatives two
years ago, the Balearic government is now extending the reform to include gift tax.
The..
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Pre-emption Rights in Real Estate Practice on Ibiza
When purchasing any property on Ibiza, the buyer should thoroughly review the property’s complete legal status. If the property for sale is..
Changes in the Spanish Civil Law Procedures
Spanish Law 1/2025 came into force on April 3, 2025, and it introduces numerous changes to procedural law, with particular importance for Spanish..
New regulations for Holiday Rentals in Ibiza
Holiday rentals on Ibiza have experienced a major “boom” in recent years. The greater demand stems from an increase in the percentage of..
Does My Car with Foreign Plates need to be Registered in Spain?
People who purchase a property in Ibiza often bring their car or other vehicle that is registered in their home country. However, anyone driving..
New Regulation of Estate Agents on the Balearic Islands
Anyone who wants to buy or sell a property on Ibiza will sooner or later have to deal with two professions: estate agents and lawyers usually..
The Importance of the Register Certificate
Starting this year, as part of the digital modernisation of Ibiza’s land registry offices, the land registrar (“registrador”) has been..
“Legalisation Amnesty” for rural properties?
In May 2024, the government of the Balearic Islands passed a decree to simplify and speed up administrative procedures. One of the important..
Selling inherited property in Ibiza
Anyone who inherits a property in Ibiza and plans to sell it directly to a third party must first settle the estate. To do this the inheritance..
The Spanish Money Laundering Law
Some laws seem so far removed from the lives of normal citizens that people believe they can safely ignore them. The “Law on the Prevention..
Some Notary Functions are possible via Video Conference
Digitalisation in Ibiza is progressing rapidly, and it is making the work of international lawyers much easier. An amendment to Spanish law that..
Is a seasonal rental contract Ok for holiday rentals?
Apartments are generally not allowed to be used for holiday rentals in Ibiza a restriction that some landlords deliberately ignore. Some people..
Understanding the New Balearic Inheritance Tax Laws
As reported in the media this summer, the new government in the Balearic Islands has implemented one of its electoral promises by adopting changes..
Tax for Non-Resident Homeowners
Non resident owners of second homes here on Ibiza not only have to pay property tax (IBI) in Spain, but are also subject to a limited income..
The Importance of the Energy Efficiency Certificate
Anyone on Ibiza who has wanted to sell or rent their property in recent years, is familiar with the necessity of getting the “certificado de..
Changes in the Property Transfer and Wealth Taxes
Beginning on January 1, 2023, the real estate transfer tax (“ITP” Impuesto sobre Transmisiones Patrimoniales) on the Balearic Islands has..
The Spanish Land Registry
In addition to the notary, the head of the land registry office (“registrador”) provides the legal basis that is crucial for the purchase..
Do You Need an Electronic Signature?
The electronic signature (firma electrónica or certificado electrónico/digital in Spanish) has gained importance in recent years as a way for..
The Functions of a Spanish Notary
As of 2022 there are nine notary offices distributed throughout the various communities on Ibiza and Formentera. A Spanish notary is obligated..
Does the simple land registry note provide all the necessary information?
In Spain anyone is free to consult the land register on the website www.registradores.org. You can find the details of the property you are interested..
Changes to the Tax Declaration of Foreign Assets
With Law 5/2022, which was published in the Official Gazette (“BOIB”) on 10 March, 2022, the legislature has adapted the controversial tax..
Applying the new real estate market reference values
Since the beginning of 2022 there have been significant changes in the valuation of real estate, which have a direct impact on the real estate..
Municipal capital gains tax is temporarily repealed
The Spanish Constitutional Court (“Tribunal Constitucional”) de¬clared the method for calculating the “plusvalía tax” to be inadmis¬sible..
Tourist rentals in 2021
Those who purchase a property in Ibiza these days often think of reducing the costs of buying and maintaining the house through holiday rentals.
Since..
Real Estate Taxation Values to change in 2022
On July 10, 2021, Law 11/2021 on Measures to Prevent and Combat Tax Fraud (Ley de Medidas de Prevención y Lucha contra el Fraude Fiscal) was..
What to be aware of when buying an apartment
When purchasing an apartment, there are a number of special features that the prospective buyer should be aware of.
These are in addition to..
New mortgage laws protect consumers
Since the summer of 2019, the process of real estate financing in Spain has changed in favour of consumers. On the basis of a European directive,..
Is it sensible to donate property?
This is a question we are often asked by property owners in Ibiza.
To find the right answer we must look at the fiscal consequences (taxes)..
Changes related to real estate auctions
In 2015, legislation regarding the forced sale of jointly owned properties changed and the electronic judicial auction was brought in. This procedure..
Difficulties when building on rustic land in Ibiza
Those of us who love the beauty of the island do not want to see it destroyed by uncontrolled building. Obviously, Balearic lawmakers and the..
Additional costs when buying and selling property
When you are buying a home, itis often the case that both buyer and seller do not pay enough attention to the additional costs incurred. In this..
Legal Advice for Newly Built Homes
What do you need to bear in mind when declaring a newly built home at the Notary?
Thirty years ago there were very few laws in Spain that regulated..
Taxes on the capital gains of a property sale
Many owners in Ibiza bought their property years ago, for a price declared on the deeds that was well below present market prices. As a consequence,..
The visit sheet
What is the point of this document, which is signed when you visit a property?
In Ibiza, when a real estate agency shows a property to a possible..
Succession Agreement: Planning for an anticipated inheritance
An important concern for many homeowners in Ibiza is how their property will be inherited.
The covenant known as an “succession agreement”..
An obstacle for non-EU buyers: obtaining a military authorization
Did you know that a Canadian citizen can freely buy an attic apartment in the centre of Ibiza, but is not allowed to buy an inland property,..
How can we reduce the Wealth Tax bill?
The wealth Tax was abolished in Spain in 2008, but a few years ago it was brought back again at national level, and thus, also in Ibiza. This..
What are the mortgage costs that the Spanish banks will need to repay?
There has been much talk in the press recently about the latest rulings stating that the banks should have to pay back to their customers at..
The function of the Land Registry
Even a layman knows the importance of checking the Land Registry when buying a property in Ibiza. This institution is based on the principle..
Property tax (IBI) and its settlement
Anyone who has a property in Ibiza must pay their local council the corresponding annual property tax.
This tax makes no distinction between..
Municipal Added Value Tax
There are few concepts in the Spanish legal jargon that can lead to as much misinterpretation as the term “plusvalía”, which can be translated..
The Acquisition Of Property In Ibiza 2018
A buyer faces several questions when dealing with a real estate transaction: has the property been regularised? Is the building in keeping with..
The new Urban Planning Law
On December 29 of last year, the new Urban Planning Law of the Balearic Islands (LUIB) was published in the BOIB, the Official Gazette of the..
Spanish rental legislation
Whoever is renting a home in Ibiza should be up to date with Spanish rental legislation, not just when the end of the contract is approaching,..
The new Tourist Law – what kind of tourist rental will be legal in the future?
At the end of July 2017, the Balearic Government published the new rules on vacation rentals in the BOIB, the Official Gazette of the Balearic..
The inheritance and gift tax system currently in force in Ibiza
Following the ruling of the European Court of 3 September 2014, Spanish lawmakers equated non residents to residents with regard to inheritance,..
The first occupancy license and the habitation certificate
Before buying a property in Ibiza, one should take into account and verify a number of things: building permits, possible charges registered..
BUILDING & RENOVATING IN IBIZA
In this article we will explain the conditions and legal framework for construction work and building renovations in Ibiza. 1. THE CONTRACT..
More stringent BUILDING REGULATIONS IN IBIZA
The Ibiza Island Council approved a set of amendments to the Territorial Plan for Ibiza (PTI) at the end of 2016 which will mean tougher building..
Life interest or usufructo - Basic principles
Setting up a life interest or usufruct and inscribing it in the Property Registry is a strategy for capital protection that is used quite frequently..
DO YOU KNOW WHICH PRE-NUPTIAL AGREEMENT GOVERNS YOUR MARRIAGE?
When the Notary who draws up the deed to purchase a property in Ibiza asks you which economic regime you chose for your marriage celebrated abroad,..
6 golden rules when buying a property in Ibiza
1. Check that the seller is indeed the owner of the property, either requesting to see the sales deed or asking for what is called a Nota Simple..
How to reclaim a debt in Spain
It would be best for a creditor in Spain to attempt an out of court settlement to retrieve a debt as trials in court can be long, complicated..
Tax rises in the Balearics for 2016
As from the 1st of January, the Balearic Government has raised some taxes, affecting the Property Transfer Tax that has to be paid when buying..
Which costs are charged to the seller of a property?
If a resident or non resident sells his Spanish property, this may mean he has made a profit and capital gain which he has to pay taxes on.
In..
Cadastral and registration regularization
At the end of 2010, the Spanish government decided to update the Cadastral database.
This gave property owners in Ibiza the opportunity to regularize..
How much is my property actually worth?
Many home owners in Ibiza would like to know the answer to this question but, unfortunately, it’s not that easy to find it. The valuation..
Information about the Property Registry and the Land Registry
When preparing to buy or sell a property, it is often discovered that the entry in the Property Registry does not coincide with the Land Registry..
Homeowners’ Association meetings in Ibiza
The members of an association of homeowners located in Ibiza will meet at least once a year at their annual general meeting to decide, amongst..
Holiday rentals on private houses made easier
A law passed by the Balearic Government in 2012 is facilitating holiday rentals from private houses.
Thanks to this law, house owners in Ibiza..
Some advice when purchasing new-build homes
For anyone interested in buying a property in Spain, and particularly in Ibiza, buying a new build directly from the developer can be an interesting..
Advice when selling a property
In this article we will deal with what is worth bearing in mind if you wish to sell a property, and how sellers can prepare for an uncomplicated..
The new EU inheritance regulation
In August 2015, a new European inheritance regulation came into effect that will be applicable to all member countries with the exception of..
Clarity about building regulations
When someone is thinking of buying a piece of land to build a house on it, it is quite logical that they first want to know if they can in fact..
Where do the boundaries of my property lay?
In Ibiza, it is frequent to find that a large part of a property of ours is not registered at the Property Registry nor at the Records Office.
As..
Homebuying tips in Ibiza
Nowadays many people can make their dream of buying a property in Ibiza come true.
Thanks to good communications by air, travelling to the “white..
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