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The property market on the island is both attractive and complex. This is where an Ibiza property lawyer comes in.

A solicitor specialising in property law who will advise and protect you throughout the buying and selling process.

From properties with planning irregularities to hidden tax liabilities, buyers can face numerous challenges.

In this article we explain what a property lawyer in Ibiza does, why they are essential and when you should use their services.

Why is a Property Lawyer Essential When Buying in Ibiza?

Purchasing a property in Ibiza is not as simple as signing a contract.

The legal and tax intricacies can turn the transaction into a risky process if you do not have the right guidance.

A Property Lawyer protects you from legal and financial risks, ensuring a smooth and secure transaction.

Is hiring an Ibiza property lawyer compulsory?

It is not legally required, but it is highly recommended, especially in Ibiza.

Without a specialised lawyer, you could end up purchasing a property with hidden liabilities or in an uncertain legal situation.

The real estate market is complex, and there are specific risks involved.

Risks of Not Having Legal Advice in Ibiza

• Buying a property with planning issues.
• Failing to detect outstanding debts or liens.
• Not complying with local tax and regulatory obligations.
• Properties with hidden charges.
• Contracts with unfair clauses.
• Issues with licences and permits.

Essential Services of a Property Lawyer in Ibiza

Legal Review and Real Estate Due Diligence

A Property Lawyer conducts a thorough review of the property’s documentation, verifying its legal status, charges, debts, and potential planning issues.

Contract Negotiation and Drafting

The Property Lawyer handles the drafting and negotiation of purchase agreements, protecting your interests.

Tax Management and Real Estate Fiscal Advice

Providing guidance on applicable taxes (ITP, VAT, Plusvalía) and handling tax procedures with up-to-date information on housing laws in the Balearic Islands.

Regularisation of Properties and Urban Planning Licences

Many properties in Ibiza have planning irregularities. A lawyer can help you regularise them and obtain the necessary licences.

Common Mistakes When Buying a Property in Ibiza (And How to Avoid Them)

Properties Without a Licence or With Planning Issues

Verify the property’s legality and its licences before purchasing. It is common to find homes on rural land without the necessary building permits.

Hidden Charges, Liens, and Debts on Properties

A Property Lawyer will check the Land Registry to avoid unpleasant surprises. Conducting thorough Due Diligence is crucial to identify potential issues.

Discrepancies Between the Deed and the Actual Property

Some properties have undergone undeclared modifications, which can lead to legal complications. Ensure that the property description in the deed matches the physical reality.

“Smoothly helped me out selling and buying villas whilst sourcing the relevant documentation and helping to navigate my tax exposure and capital gains.” Daniel Plant

Frequently Asked Questions About Ibiza Property Lawyers.

What Taxes Must Be Paid When Buying a House in Ibiza

The taxes depend on whether the property is a resale or a new-build. The main ones include:

Resale Properties:Transfer Tax (ITP), applied progressively:

• Up to €400,000 → 8%
• €400,001 to €600,000 → 9%
• Over €600,001 → 10%

New-Build Properties: VAT (10%) plus Stamp Duty (AJD), which ranges between 1.5% and 2%.

Additionally, the Municipal Plusvalía Tax is levied on the increase in land value, usually paid by the seller unless otherwise agreed.

It is important to note that tax rates may vary, so consulting a professional for accurate and up-to-date information is recommended.

How Long Does the Buying Process Take in Ibiza?

The duration varies depending on the complexity of the transaction and the required documentation. Generally:

• The process typically takes 6 to 12 weeks.
• Delays can occur due to financing issues, permits, or outstanding charges on the property.
• High demand and overloaded registries in Ibiza can sometimes extend these timelines.

Can a Foreigner/Non-Resident Buy a Property in Ibiza?

Yes, foreigners can purchase properties in Ibiza without restrictions. However, they must:

✔ Obtain a NIE (Foreigner Identification Number).

✔ Open a Spanish bank account (recommended for managing payments and taxes).

What Documents Are Needed to Buy a Property?

Among the essential documents are:

• Nota Simple: Provides legal information on the property, confirming ownership and any charges.
• Title Deed: The official document proving ownership.
• Deposit Agreement (Contrato de Arras): Establishes a commitment between buyer and seller and outlines purchase conditions and deposit payment.
• Deed of Sale (Escritura de Compraventa): Formalises the property transfer.
• Energy Performance Certificate: Mandatory for sale.
• Latest Property Tax (IBI) Receipt: Ensures no outstanding tax debts.
• Official Identification: Valid ID, passport, or NIE.
• Community Fees Certificate: Confirms there are no outstanding payments to the property owners’ association.

When Should You Hire a Property Lawyer in Ibiza?

If you are buying, selling, or regularising a property in Ibiza, hiring a Property Lawyer is a wise decision.

Whenever you engage in a real estate transaction in Ibiza, avoid unnecessary risks and ensure a smooth, secure process.

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