When buying property in Mallorca as a foreigner, understanding the associated costs and available tax deductions is essential. This guide will help you navigate purchase expenses and optimize your tax savings.
1. Purchase Costs
Foreign buyers face several costs when purchasing property in Mallorca:
- Property Transfer Tax (ITP): 8-11% of the property value.
- Value-Added Tax (VAT): 10% for new properties.
- Legal and Notary Fees: 1-2% of the purchase price.
Buying Property in Mallorca: Costs and Tax Deductions for Foreigners
2. Tax Deductions
You may be eligible for tax deductions:
- Mortgage Interest: Deductible if you finance the property.
- Renovations: Certain repair or improvement costs can be deducted.
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