For Residents in the Balearic Islands, and also similar situations in the rest of Spain.

If you’re planning to sell a property in 2026, it’s essential to understand the costs and taxes involved. For residents in the Balearic Islands, the total expenses from the sale — including taxes and associated fees — typically range from 5% to 15% of the final sale price.

This guide breaks down all the relevant taxes, deductions, and paperwork involved in the process of selling a home in Spain.

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🧾 Pre-Sale and Sale-Related Expenses

When selling a home, it’s not just about finding a buyer and signing a contract. There are several costs you may need to cover before and during the sale:

• Energy Certificate: Required to list the property. The cost usually ranges between €60 and €130.

• Cédula de Habitabilidad: May be required by the Balearic local authorities. Costs between €60 and €160.

• Nota Simple: A brief legal summary of the property status from the land registry. Around €9–10.

• Mortgage Cancellation:

  • If done manually: around €400.

  • Via a gestor: €480–€1,000 depending on the bank’s involvement.

• Deposit Contract (Contrato de Arras): Optional but common. Drafting this contract can cost between €100 and €400.

• Notary Fees: For the public deed (escritura). Typically between €600 and €875 depending on the property value.

• Real Estate Agency Commission: If an agency is involved, expect to pay a percentage of the sale price.

These pre-sale and sale-related expenses can easily account for a few thousand euros, even before tax liabilities are considered.

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🧮 Main Taxes When Selling Your Property in 2026

Here are the primary taxes you must pay as a tax resident in Spain:

IRPF – Personal Income Tax on Capital Gains

If you sell the property for more than you originally paid (plus documented costs and investments), you are required to pay tax on the gain. This tax is part of your annual income declaration.

The rates for 2026 are:

You can reduce the taxable gain by deducting justified expenses such as:

• Notary and registration fees from the original purchase

• Costs of documented renovations or improvements

• Sale-related expenses (agency fees, certificates, mortgage cancellation, etc.)

Exemptions and Reductions:

• If you’re over 65 and selling your habitual residence

• If you reinvest the proceeds in another main residence

• In some cases of dependency or inheritance

Plusvalía Municipal (Municipal Capital Gains Tax)

This tax applies to the increase in the value of the land during the period of ownership and is paid to your local municipality.

• Based on cadastral land value and years of ownership

• Sellers can choose between two calculation methods (actual gain or fixed coefficients)

• You may owe this tax even if you don’t make a profit on the sale overall

IBI (Property Tax)

The IBI for the full year is usually the responsibility of the owner as of January 1. However, it is common to agree to split the cost proportionally with the buyer depending on the closing date.

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🏠 Sample Calculation – Selling a Flat in the Balearics in 2026

Let’s say you bought a flat for €150,000 fifteen years ago. You made €10,000 in improvements and you sell it now for €250,000.

• Purchase cost + improvements + sale expenses: €150,000 + €10,000 + €8,000 = €168,000

• Net gain: €250,000 – €168,000 = €82,000

• IRPF: falls in the 23% bracket → approx. €18,860 in tax

• Plusvalía Municipal: could range from €500 to €4,000 depending on cadastral value and local coefficients

• Other costs (agency, certificates, notary, etc.): approx. €7,000–€12,000

Total cost of sale: potentially €25,000–€35,000, or around 10–14% of the sale price.

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📝 Documents Needed for the Tax Process

To complete your tax filings properly, make sure you have the following:

• Property purchase deeds

• Improvement and renovation invoices

• Sale agreement and notary deeds

• Proof of mortgage cancellation

• Certificate of energy efficiency

• Plusvalía municipal settlement

Note: Copia DNI; TIE/ Certificado Ciudadano EU, o en su defecto, daremos una cita para obtener el número referencia de Renta Web.

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✅ Tips for Sellers in the Balearic Islands

• Prepare early: collect and scan invoices, certificates, and contracts

• Review the cadastral value and municipal coefficients for Plusvalía

• Check whether any IRPF exemptions apply to your case

• Talk to a tax advisor before signing the sale deed

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🧾 Conclusion

Selling a home in the Balearic Islands in 2026 involves much more than finding a buyer. Between capital gains tax, municipal taxes, and administrative fees, many sellers face final costs that range from 5% to 15% of the sale price. Proper planning and documentation can save you thousands in taxes.

If you’re unsure how much you would owe after a sale, we can help you estimate it in detail.