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Ibiza: A Comprehensive Guide

The Island of Ibiza

Ibiza (Eivissa in Catalan) is one of the Balearic Islands, located in the Mediterranean Sea, off the eastern coast of Spain. It is world-renowned for its vibrant nightlife, electronic music scene, and stunning beaches and coves. Beyond the party reputation, Ibiza offers a rich cultural heritage, picturesque villages, beautiful natural landscapes, and a tranquil side that attracts a diverse population, from international jet-setters to families and those seeking a more relaxed lifestyle.

The island enjoys a typical Mediterranean climate, with hot, dry summers and mild winters. Its economy relies heavily on tourism, but also on real estate, services, and local commerce.

Ibiza Island Districts and Municipalities

Ibiza is divided into five municipalities, each with its distinct character:

  • Eivissa (Ibiza Town): The capital and largest city on the island. It boasts the historic walled city of Dalt Vila (a UNESCO World Heritage site), a bustling port, diverse nightlife, and a wide array of shops and restaurants. It’s the administrative and commercial heart of the island.
  • Sant Antoni de Portmany: Famous for its sunsets, lively promenade, and vibrant nightlife, particularly popular with younger tourists. It also has beautiful coves nearby and a well-developed tourist infrastructure.
  • Santa Eulària des Riu: Known for being more family-friendly and tranquil, with a charming promenade, a river (the only one in the Balearics), and a good selection of restaurants and shops. It attracts those seeking a more relaxed atmosphere.
  • Sant Josep de sa Talaia: The largest municipality by area, covering the southwest coast, including some of the most famous beaches and coves like Cala Comte, Cala Bassa, and Ses Salines. It’s also home to Ibiza’s highest point, Sa Talaiassa. This area combines luxury villas with rural charm.
  • Sant Joan de Labritja: The most northern and least developed municipality, preserving much of Ibiza’s traditional and rural essence. It’s characterized by its natural beauty, secluded beaches, and a more bohemian and spiritual vibe. It’s ideal for those seeking tranquility and contact with nature.

Why Ibiza?

Ibiza offers a unique quality of life for several reasons:

  • Natural Beauty: Breathtaking beaches, crystal-clear waters, pine forests, and stunning sunsets. The island’s natural parks and protected areas offer diverse landscapes.
  • Lifestyle: A blend of cosmopolitan glamour, bohemian tranquility, and a vibrant international community. It offers something for every taste, from world-class nightlife to yoga retreats and quiet rural living.
  • Climate: Over 300 days of sunshine a year, with mild winters, making it enjoyable year-round.
  • Cuisine: A rich gastronomic scene, combining traditional Ibizan dishes with international haute cuisine. Fresh seafood and local produce are highlights.
  • Connectivity: Ibiza Airport (IBZ) offers excellent national and international connections, especially during the high season, making it easily accessible.
  • Safety: Generally a safe destination, especially outside the main party zones.

Ibiza vs. Other Cities

Comparing Ibiza to other Spanish cities involves distinct differences due to its island nature and unique character:

  • Ibiza vs. Valencia:
    • Climate: Both have Mediterranean climates. Valencia’s is slightly more continental, while Ibiza’s is purely insular, with a milder maritime influence.
    • Size and Atmosphere: Valencia is a large, vibrant, and traditional Spanish city, a provincial capital with a diverse economy beyond tourism. Ibiza is an island with a smaller population, a highly seasonal tourist economy, and a much more international, luxurious, and party-oriented (in certain areas) atmosphere.
    • Cost of Living: Ibiza generally has a significantly higher cost of living, especially for housing, due to its island status and high demand from international residents and tourists. Valencia is much more affordable.
    • Nature: Both offer beaches, but Ibiza’s natural landscapes are more varied in a smaller area, with dramatic cliffs, coves, and protected natural parks. Valencia is surrounded by agricultural land (huerta) and flatter terrain.
    • Connectivity: Valencia is a major transport hub with excellent road, rail, and port connections to mainland Spain. Ibiza relies on air and ferry connections.
  • Ibiza vs. Madrid/Barcelona:
    • Size and Pace: Madrid and Barcelona are major European metropolises with bustling city life, vast cultural offerings, and fast-paced environments. Ibiza is a small island, offering a much more relaxed pace, even in its busiest areas.
    • Cost of Living: Housing and general cost of living in Ibiza can rival or exceed that of Madrid/Barcelona for luxury properties, but daily expenses in general can be lower in the big cities for non-luxury goods/services.
    • Opportunities: Madrid and Barcelona offer far more diverse and numerous job and business opportunities across all sectors. Ibiza’s economy is predominantly tourism and real estate focused.
    • Environment: Ibiza offers constant proximity to beaches and natural landscapes; the big cities offer urban parks but require travel to reach extensive natural areas or beaches.
  • Ibiza vs. Marbella:
    • Focus: Both are luxury destinations. Marbella is part of a larger coastal strip (Costa del Sol) with a focus on golf, luxury resorts, and a more established, year-round luxury tourism. Ibiza is an island with a unique “bohemian-chic” vibe, famous for its electronic music, exclusive beach clubs, and stunning natural coves.
    • Clientele: Marbella attracts a global luxury clientele, often with a more traditional “glamour.” Ibiza attracts a younger, more fashion-conscious, and international crowd, along with those seeking a spiritual or wellness retreat.
    • Seasonality: Both have a strong high season, but Ibiza’s is more intensely focused on the summer months, with a quieter winter, whereas Marbella maintains a more consistent, albeit lower, level of activity year-round.
    • Geography: Marbella is on the mainland with mountains behind it; Ibiza is an island.

Living and Working in Ibiza

Living and working in Ibiza presents a unique set of opportunities and challenges. While tourism is the main economic driver, the island’s diverse community also supports other sectors.

  • Job Market: The job market is highly seasonal, with abundant opportunities in hospitality, tourism, retail, and services during the summer months (May-October). Off-season, jobs are scarcer, though there’s a growing push for year-round tourism and other sectors like real estate, construction, and remote work. Fluency in multiple languages (English, German, French, Italian, and Spanish/Catalan) is a significant advantage.
  • Cost of Living: Ibiza is one of the most expensive places to live in Spain, particularly regarding housing. Rental prices, especially during the high season, can be extremely high. Food and services are also generally more expensive than on the mainland. However, the unique lifestyle and beautiful surroundings often compensate for this for residents.
  • Public Transport: Ibiza has a public bus network connecting the main towns, villages, and beaches, though service frequency varies significantly between summer and winter. Many residents rely on private vehicles, especially to reach more remote areas.
  • Services: The island has well-developed services, including public and private health centers, hospitals (Can Misses Hospital), schools, and sports facilities.

Immigration Office in Ibiza (Balearic Islands): NIEs, Visas, Permits, etc.

The management of immigration procedures (NIE, visas, residence and work permits, etc.) in Ibiza is handled through the Foreigners Office (Oficina de Extranjería), which is part of the Government Delegation in the Balearic Islands. While the main office is in Palma de Mallorca, Ibiza has a local police station that processes many documents.

  • Foreigners Office (Oficina de Extranjería) in Ibiza:
    • Location: Comisaría de la Policía Nacional de Ibiza, Avinguda de la Pau, s/n, 07800 Eivissa, Illes Balears.
    • Services: Issuance of NIE (Foreigner Identification Number), fingerprinting for the TIE (Foreigner Identity Card), extensions of stay, and some initial applications for residency. It is crucial to check the specific services offered at this location, as some more complex procedures might require a trip to Palma.
    • Appointment: A prior appointment (cita previa) is almost always required for any procedure, booked online through the Spanish government’s Public Administrations portal.
  • Foreigners Office in Palma de Mallorca (Government Delegation):
    • Main Location: Carrer del Foment, 4, 07008 Palma, Illes Balears.
    • Services: This is the main office for the Balearic Islands and handles a wider range of services, including complex residence, work, family reunification, arraigo (rooting), and visa applications.

Tip: For any immigration procedure, it’s essential to consult the official website of the Ministry of Interior or the Government Delegation in the Balearic Islands for updated requirements and appointment procedures. Due to high demand, getting appointments can sometimes be challenging.

Best Banks in Ibiza City and Island

The banks with the largest presence in Ibiza, offering a wide network of branches and services for individuals and businesses, are the same as those nationwide, plus some with a strong local Balearic presence:

  • CaixaBank: Very extensive network throughout the island.
  • Banco Santander: Strong presence in major towns.
  • BBVA: Also widely available.
  • Banc Sabadell: With branches in key areas.
  • Bankinter: Growing presence, often preferred for online services.
  • Globalcaja: While not as large as the national banks, some local savings banks or cooperatives may have a presence.
  • Local Banks (e.g., Caixa Colonya, Banca March): These are Balearic banks that have a good understanding of the local market and often offer personalized services.

In addition to traditional banks, online banking options (N26, Revolut, ING, Openbank, Wise, etc.) are increasingly popular, especially among the international community, and offer competitive services. The “best” bank will depend on your specific needs, including fees, international transfer services, mortgages, and customer service.

Connecting Flights from Ibiza Airport (IBZ)

Ibiza Airport (IBZ) is the only airport on the island and is excellently connected, especially during the peak season. It’s located about 7 km southwest of Ibiza Town.

Airlines with regular presence:

  • Vueling: One of the main operators, connecting with numerous Spanish and European cities.
  • Ryanair: Extensive network of budget flights to various European destinations.
  • Iberia / Air Nostrum / Iberia Express: Essential for connecting to Madrid, a major international hub, and other Spanish cities.
  • EasyJet: Strong presence connecting to the UK and other European countries.
  • Jet2.com: Popular for flights to the UK.
  • British Airways: Offers direct flights to London.
  • Transavia: Connects to the Netherlands.
  • Eurowings: Connects to Germany.
  • Wizz Air: Growing presence with connections to Eastern Europe.
  • Luxair: Connects to Luxembourg.
  • Air France / KLM: Seasonal flights to Paris and Amsterdam.
  • Swiss / Edelweiss Air: Seasonal flights to Switzerland.
  • TUI Fly (various countries): Connects to various European holiday destinations.

Key National Destinations:

  • Madrid
  • Barcelona
  • Palma de Mallorca (frequent inter-island flights)
  • Valencia
  • Alicante
  • Seville
  • Malaga
  • Bilbao
  • Santiago de Compostela
  • Gran Canaria / Tenerife (Canary Islands)

Direct International Destinations (highly seasonal, with more routes in summer):

  • United Kingdom: London (Heathrow, Gatwick, Stansted, Luton), Manchester, Birmingham, Bristol, Glasgow, Edinburgh, Liverpool, Newcastle, Leeds, Belfast.
  • Germany: Berlin, Munich, Frankfurt, Düsseldorf, Hamburg, Cologne.
  • Italy: Rome, Milan, Naples, Venice, Bologna.
  • France: Paris, Lyon, Marseille, Bordeaux, Nice.
  • Netherlands: Amsterdam, Eindhoven.
  • Belgium: Brussels.
  • Switzerland: Zurich, Geneva, Basel.
  • Ireland: Dublin.
  • Portugal: Lisbon, Porto.
  • Nordic Countries: Copenhagen, Stockholm, Oslo, Helsinki (seasonal).
  • Eastern Europe: Warsaw, Krakow, Prague, Budapest (seasonal).

Airport Access from Ibiza Town: There are regular public bus services (L10) connecting the airport with Ibiza Town and other major tourist areas. Taxis and private transfer services are also readily available.


Education in Ibiza

International Schools in the Ibiza Area

Ibiza has a growing number of international residents, which has led to an increasing demand for and offering of international education. While the options are not as extensive as in major mainland cities, quality international schools exist:

  • Morna International College (Santa Gertrudis): This is the most established and well-known international school on the island. It offers a British curriculum from nursery to Sixth Form (ages 3 to 18) and prepares students for IGCSEs and A-levels. It attracts a diverse international student body.
  • Lycée Français d’Ibiza (Eivissa): Offers a French curriculum, part of the AEFE (Agency for French Education Abroad) network, catering to the French-speaking community on the island.
  • Colegio Mestral (Eivissa): A private Spanish school that offers a strong bilingual program (Spanish-English) and often incorporates international teaching methodologies, although it follows the Spanish curriculum.
  • Colegio Sant Jordi (Sant Jordi de ses Salines): Another private school with a focus on English language learning within the Spanish curriculum.
  • Language Schools and Tutoring: Many families also complement local schooling with private language lessons and international tutoring services available on the island.

For those seeking a specific international curriculum (e.g., American curriculum or International Baccalaureate not offered by Morna), they might need to consider online schooling options or schools in Mallorca or mainland Spain.

Universities in Ibiza

Ibiza does not have a full-fledged university campus with a wide range of degrees in the same way as large mainland cities like Valencia or Barcelona. The main university for the Balearic Islands is located in Mallorca.

  • University of the Balearic Islands (Universitat de les Illes Balears – UIB):
    • The main campus of the UIB is in Palma de Mallorca. It offers a broad range of undergraduate and postgraduate degrees.
    • The UIB does have a small satellite center in Ibiza (often referred to as the UIB-Ibiza extension). This center primarily offers specific courses, some initial years of degrees, or distance learning support, mainly for degrees related to tourism, business administration, and some humanities. Students often start their studies in Ibiza and then transfer to the Palma campus to complete them.
  • National University of Distance Education (UNED): Ibiza is home to an associated center of UNED, which allows students to pursue a wide variety of degrees and master’s programs online and blended, with tutorials and exams available locally. This is a popular option for residents who wish to pursue higher education without leaving the island.
  • Vocational Training (Formación Profesional – FP): Ibiza has several vocational training centers offering mid- and higher-level training cycles in various areas relevant to the island’s economy, such as hospitality, tourism, administration, and health. These programs are practical and often lead directly to employment.
  • Specific Hospitality and Tourism Schools: Given Ibiza’s strong tourism sector, there are also specialized private schools or academies offering courses in hospitality, gastronomy, and tourism management.

The universities you listed for Valencia (Catholic University of Valencia Saint Vincent Martyr, European University of Valencia, CEU Cardinal Herrera University, Valencia International University (VIU), Florida Universitària, Berklee College of Music) are based on the mainland and do not have campuses in Ibiza.

List of Consulates and Embassies in Ibiza

Generally, Consulates and Embassies of foreign countries are established in national capitals (Madrid) or in major regional capitals (like Palma de Mallorca for the Balearic Islands, or Barcelona for its proximity and importance).

Ibiza does not host permanent full consulates or embassies of foreign countries.

  • Honorary Consulates: Ibiza does have a number of honorary consulates for countries with a significant presence of their nationals or tourists on the island. These are typically managed by local citizens (often businesspeople) and offer very limited consular services, mainly assistance in emergencies, passport renewals (sometimes), or notarization of simple documents. They are not diplomatic missions.
    • Examples of countries that typically have honorary consulates in Ibiza include the UK, Germany, France, Italy, and the Netherlands, among others. However, their presence and services can change, so it’s always best to verify directly with the respective embassy in Madrid.
  • Consulates General or Embassies: For most comprehensive consular procedures (visas, passports, complex civil registrations, etc.) and for diplomatic representation, residents and visitors in Ibiza must go to:
    • Palma de Mallorca: Many countries have a Consulate General in Palma that covers the entire Balearic Islands.
    • Madrid: Where the vast majority of Embassies and Consulates General in Spain are located.
    • Barcelona: For some countries, Consulates General in Barcelona may have jurisdiction that includes the Balearic Islands.

Therefore, the extensive list of consulates you mentioned for Valencia does not directly apply to Ibiza. If you need consular services for a specific country, you should first check if they have an honorary consulate in Ibiza and what services it offers, or otherwise, contact their Consulate General in Palma or their Embassy in Madrid.

Official Chambers of Commerce in Ibiza

Yes, Ibiza, as a key economic hub within the Balearic Islands, has an important Chamber of Commerce.

  • Chamber of Commerce, Industry, Services and Navigation of Ibiza and Formentera (Cambra de Comerç d’Eivissa i Formentera):
    • Location: C. de Canàries, 37, 07800 Eivissa, Illes Balears.
    • Functions: Offers a wide range of services to businesses and entrepreneurs on both islands, including:
      • Business consulting and training.
      • Support for internationalization and foreign trade.
      • Project and subsidy management.
      • Issuance of certificates and commercial documents.
      • Organization of business events, fairs, and missions.
      • Promotion of local trade and tourism.
      • Economic studies and statistics for the islands.

This Chamber is a vital resource for anyone looking to start a business, invest, or simply gain insight into the economic landscape of Ibiza and Formentera.


Buying, Investing, or Renting Property in Ibiza

The real estate market in Ibiza is highly dynamic and unique, characterized by high demand, limited supply, and premium prices, especially for luxury properties and those with sea views or in prime locations. It’s a highly sought-after destination for international buyers.

  • Buying: Property purchase in Ibiza is a significant investment. The market offers a range from charming traditional fincas and modern luxury villas to apartments in towns or beachfront locations. Prices have steadily increased over the years due to high demand from both national and international buyers.
  • Investing: Real estate investment in Ibiza can offer excellent returns, particularly in the tourist rental sector, given the island’s immense popularity. However, it requires careful navigation of tourist license regulations and a strong understanding of market seasonality. Long-term rentals can also be profitable due to the scarcity of year-round housing.
  • Renting: The rental market is highly competitive and seasonal. During the summer, short-term tourist rentals dominate, often at very high prices. Long-term rentals for residents are scarce and expensive, making securing accommodation a challenge, especially if you arrive without prior arrangements.

Typology of Construction in Ibiza

The construction typology in Ibiza reflects its history, cultural influences, and modern development:

  • Fincas (Traditional Rural Houses): These are iconic, historic farmhouses, often stone-built with whitewashed walls, flat roofs, and characteristic Sabina wood beams. Many have been beautifully restored and extended, maintaining their original charm while offering modern comforts. They are typically found in rural areas and often come with large plots of land.
  • Luxury Villas: Abundant throughout the island, especially in desirable areas like Sant Josep, Es Cubells, and Santa Eulària. These range from modern minimalist designs with infinity pools to renovated fincas, often featuring stunning sea views, expansive grounds, and high-end amenities.
  • Apartments and Townhouses: Predominant in the main towns (Ibiza Town, Sant Antoni, Santa Eulària). These range from older buildings in the historic centers to modern complexes. Many come with communal pools and gardens.
  • “Adosados” (Terraced Houses): Common in residential urbanizations, offering a blend of privacy and community.
  • Hotels and Tourist Complexes: Especially along the coast, ranging from budget-friendly options to luxury boutique hotels and large resorts.

Cities and Villages Surrounding Ibiza

Ibiza’s relatively small size means that all its towns and charming villages are easily accessible from any point on the island:

  • Ibiza Town (Eivissa): The capital, as described.
  • Sant Antoni de Portmany: Lively port town, known for sunsets.
  • Santa Eulària des Riu: Family-friendly, tranquil, with a charming promenade.
  • Sant Josep de sa Talaia: Municipality covering the stunning southwest coast.
  • Sant Joan de Labritja: Northern, most rural, and authentic part of the island.
  • Santa Gertrudis de Fruitera: A charming, bohemian inland village, popular with expats, known for its art galleries, restaurants, and central plaza.
  • Es Cubells: A picturesque village perched on a cliff, offering stunning views, known for its quiet, traditional charm.
  • Sant Carles de Peralta: Home to the famous Las Dalias Hippy Market, a village with a bohemian past and quiet rural surroundings.
  • Portinatx: A more developed tourist resort in the north, known for its beautiful beaches.
  • Cala Llonga: A family-friendly resort town with a beautiful bay.
  • Formentera: The smaller, pristine sister island, accessible by a short ferry ride from Ibiza Town, known for its Caribbean-like beaches.

Cadastral Office and Property Registry Offices in Ibiza

  • Cadastral Office (Gerencia Regional del Catastro de Illes Balears):
    • The main office for the Balearic Islands is in Palma de Mallorca (Carrer del Temple, 2).
    • However, Ibiza has a Local Cadastre Office (Oficina de Gestión Catastral) where inquiries can be made, and some procedures handled. It’s usually located within or near the Tax Agency or City Council offices in Ibiza Town. For full details and complex procedures, it’s often easiest to use the Cadastre’s Electronic Headquarters online or visit the Palma office.
  • Property Registry Offices in Ibiza:

 

How to Obtain a Certificate of Habitation in Ibiza

The Certificate of Habitation (Cédula de Habitabilidad or Licencia de Segunda Ocupación) and the First Occupancy License are essential documents for any dwelling in the Balearic Islands, including Ibiza. These procedures are regulated by regional (Balearic Islands) and municipal (Ibiza City Council or other municipalities) regulations.

  • What is the Certificate of Habitation in Ibiza?

      It is an administrative document issued by the Consell Insular de Ibiza (Island Council) or the relevant municipal authority that certifies that a dwelling meets the minimum habitability conditions (health, hygiene, structural soundness, size, equipment) required by current regulations to be legally inhabited. It is necessary for contracting utilities (water, electricity, gas) and for the legal sale or rental of the dwelling.

  • What is the “Licencia de Primera Ocupación” or “First Occupation License”?

    This is the administrative permit granted by the relevant municipality (e.g., Ibiza Town Council) to a newly constructed building. It certifies that the building work has been completed in accordance with the approved project and urban planning regulations, and that the property meets the habitability conditions for its first use. It is a prerequisite for connecting new utilities.

  • What are the documents needed to obtain a Certificate of Habitation in Ibiza for resales?

    For existing properties (resales), you generally need a “Licencia de Segunda Ocupación” (Second Occupation License) or, in some cases, a “Declaración Responsable de Segunda Ocupación” (Responsible Declaration for Second Occupation).

    1. Hire a Qualified Professional: An architect or technical architect must inspect the property and prepare a Technical Certificate of Habitability, confirming that the dwelling complies with current habitability regulations (minimum areas, ventilation, natural light, access, installations, etc.).
    2. Property Documentation:
      • Property deed (Escritura de Propiedad).
      • Simple Note from the Property Registry (Nota Simple).
      • Cadastral reference (Referencia Catastral).
      • Previous First Occupation License (if available).
    3. Applicant’s DNI/NIE.
    4. Application Form / Responsible Declaration: Obtainable from the relevant municipal Urban Planning Department (Ayuntamiento) or the Consell Insular d’Eivissa.
    5. Payment of Municipal Fees.
  • Submit the Application: The application (along with the technical certificate and other documents) is submitted to the Urban Planning Department of the corresponding municipal council (e.g., Ayuntamiento de Eivissa, Ayuntamiento de Sant Antoni, etc.) or, for some specific cases, to the Consell Insular d’Eivissa.
    • What is the license of occupation? Is it the same as Certificate of Habitation?

      “License of Occupation” is a general term often used interchangeably with “Certificate of Habitation” or “Cédula de Habitabilidad.” Functionally, they serve the same purpose: to certify that a property is fit for habitation.

    • What is the “Licencia de Primera Ocupación” (First Occupation License), and what are the differences with the “Licencia de Segunda Ocupación” (Second Occupation License)?

      • First Occupation License: Required for newly built or completely renovated properties. It certifies that the finished construction complies with the approved building project and urban planning regulations for its initial use.
      • Second Occupation License: Required for existing dwellings that have been previously occupied, to ensure they continue to meet habitability standards. It is necessary for resales or for reactivating utilities after a long period of disuse.
    • What is the responsible declaration for second occupation?

      In the Balearic Islands, for some second occupation cases, a “Declaración Responsable de Segunda Ocupación” has been implemented. This allows the owner, under their own responsibility and backed by a qualified technician’s report, to declare that the property meets habitability requirements, enabling immediate connection of utilities without waiting for a specific license resolution. The administration may later carry out inspections to verify the declared information. This streamlines the process considerably compared to requiring an explicit “Licencia de Segunda Ocupación.”

What is the Cadastral Value in Ibiza

The **Cadastral Value** is an administrative value assigned to each property by the General Directorate of the Cadastre, an agency of the Spanish Ministry of Finance. It is based on various factors such as the property’s location, surface area, construction quality, age, and any reforms.

  • In Ibiza, the cadastral value is a public record and serves as the basis for calculating several taxes, including:
    • IBI (Impuesto sobre Bienes Inmuebles – Real Estate Tax): An annual municipal tax.
    • Municipal Capital Gains Tax (Plusvalía Municipal): A tax paid on the increase in the value of urban land when a property is sold.
  • You can obtain a property’s cadastral value through the Cadastre’s Electronic Headquarters (Sede Electrónica del Catastro) using a digital certificate or by visiting the local Cadastre office in Ibiza.

What is the Fiscal Value in Ibiza?

The **Fiscal Value**, or **Reference Value (Valor de Referencia)**, is a new value introduced in Spain since January 1, 2022, by Law 11/2021 on measures to prevent and combat tax fraud. This value is determined by the General Directorate of the Cadastre based on the average prices of property sales made before a Notary Public and collected in the Cadastre’s databases.

  • In Ibiza (and throughout Spain), the Reference Value serves as the **tax base** for the following taxes in real estate transfers:
    • ITP (Impuesto de Transmisiones Patrimoniales – Property Transfer Tax): Applied to the purchase of second-hand properties.
    • ISD (Impuesto de Sucesiones y Donaciones – Inheritance and Gift Tax): Applied to inheritances and gifts of real estate.
  • If the declared purchase price is lower than the Reference Value, the Reference Value will be taken as the minimum tax base. This means buyers and heirs will pay taxes based on this value, even if the actual transaction price is lower.
  • The Reference Value can be consulted on the Cadastre’s Electronic Headquarters. It is distinct from the cadastral value and the market value, although it aims to approximate the market value.

How to Obtain a Building License in Ibiza?

To carry out any type of construction work in Ibiza, from a minor renovation to a new build, a municipal license is required, or a prior communication/responsible declaration must be submitted, depending on the scale and nature of the work. This is handled by the Urban Planning Department of the specific municipality where the property is located (e.g., Ayuntamiento de Eivissa, Ayuntamiento de Sant Josep, etc.).

General steps:

  1. Define the type of work:
    • Minor Work (Obra Menor): Small renovations that do not affect the structure, volume, or main use of the building (e.g., changing windows, bathroom/kitchen renovations, painting facades). These often require a “Prior Communication” (Comunicación Previa) or “Responsible Declaration of Minor Work” (Declaración Responsable de Obra Menor).
    • Major Work (Obra Mayor): New construction, extensions, structural rehabilitation, changes of use, significant modifications to the facade or volume. These always require a “Major Work License” (Licencia de Obra Mayor) and a technical project endorsed by an architect.
  2. Hire a Qualified Professional: For major work, an architect or technical architect must draft the project (basic and execution project) in accordance with the specific urban planning regulations of the municipality and the Balearic Islands’ regional regulations (e.g., LUIB – Ley de Urbanismo de las Islas Baleares) and the Technical Building Code (CTE).
  3. Documentation:
    • Official application form from the relevant municipal council.
    • Technical project (if applicable, endorsed by the professional college).
    • Applicant’s DNI/NIE.
    • Property deed and cadastral reference.
    • Proof of payment of municipal fees and taxes (ICIO – Tax on Constructions, Installations, and Works).
    • Other specific reports or permits (e.g., environmental impact, archaeological studies, if the property is in a protected area or affects heritage).
  4. Submission: Submit all documentation to the Urban Planning Department of the corresponding City Council (either in person or through their electronic portal).
  5. Resolution: The City Council will review the documentation and project. If everything is correct and compliant, the license will be granted (this can take several months for major work) or the prior communication/responsible declaration will be accepted.
  6. Start and End of Work: Once the license/acceptance is obtained, work can commence. Upon completion, the City Council must be notified, and for major work, the “Licencia de Primera Ocupación” (First Occupation License) must be requested.

Important Note: Due to Ibiza’s unique environment and urban planning sensitivity, regulations can be strict, especially regarding new builds in rustic land or protected areas. Professional advice is crucial.

Water, Electricity, and Gas Suppliers in Ibiza City and Island

Utilities in Ibiza are managed by different companies, similar to the rest of Spain.

  • Water Supply:
    • Companies: The water supply in Ibiza is managed by municipal or concessionaire companies, which can vary by municipality. For Ibiza Town and some surrounding areas, the main company is Aqualogia (Gestionar S.L.). Other municipalities may have their own public or private companies (e.g., Hidrobal in some areas).
    • Steps to Connect: For a new connection, you’ll need the First Occupation License or Responsible Declaration. For existing properties, it’s typically a change of ownership. You’ll need the holder’s DNI/NIE, property details, and bank account information for direct debit.
  • Electricity Supply:
    • Distributor: The electricity distribution company in the Balearic Islands, including Ibiza, is Endesa Distribución Eléctrica (part of the Endesa Group). They are responsible for the infrastructure (power lines, meters) and ensuring the quality and continuity of supply. You cannot choose your distributor.
    • Retailers (Comercializadoras): You can choose from numerous retailers to contract electricity. These are the companies that will bill you for your consumption. Major retailers include:
      • Endesa Energía: The retail arm of the Endesa Group.
      • Iberdrola: Another large national company.
      • Naturgy: Also a major player.
      • Repsol, TotalEnergies, Holaluz, Som Energía, etc.: Many other options are available, including those focused on green energy.
    • Steps to Connect Utilities: You will need the CUPS (Universal Supply Point Code) of the dwelling (found on previous bills), DNI/NIE of the holder, a valid Electrical Installation Certificate (CIE – Certificado de Instalación Eléctrica) if it’s a new installation or significant changes have been made, and bank details. Contact your chosen retailer to set up the contract.
  • Gas Supply:
    • Distributor: While natural gas infrastructure is less widespread than on the mainland, it is available in some urban areas of Ibiza. The main gas distributor in the Balearic Islands is Redexis (for natural gas via pipeline).
    • Retailers: You can contract gas with retailers such as Naturgy, Repsol, Endesa, Iberdrola, etc.
    • LPG/Butane/Propane: In many areas, especially rural ones, gas is supplied via bottled butane/propane gas (Repsol Butano, Cepsa) or large individual propane tanks.
    • Steps to Connect: Similar to electricity, you’ll need the universal gas supply point code (if applicable), holder’s data, and the gas installation certificate (IGR – Instalación de Gas Receptor).

Choosing a Provider:

It’s advisable to compare rates (fixed, variable, with time-of-use tariffs), customer service, and additional services offered by different retailers. Online comparators are a useful tool.

Additional Points:

Internet and telephone services are widely available from major national providers (Movistar, Orange, Vodafone, MásMóvil, etc.), as well as local providers. Fiber optic internet is increasingly common in urban and semi-urban areas.

How to Obtain a License for a Well in Ibiza?

In Ibiza, due to its island nature and the importance of groundwater resources, the drilling and use of water wells are strictly regulated. Authorization is required from the Direcció General de Recursos Hídrics (Directorate General of Water Resources) of the Balearic Islands’ regional government (Conselleria del Mar i del Cicle de l’Aigua), in addition to municipal permits for the civil works involved.

  • Procedure: This is a complex process that requires a technical project drafted by a qualified engineer (geologist or agricultural engineer) justifying the need for the well, its location, the planned volume of extraction, and its impact on aquifers.
  • Key Steps:
    1. Technical project preparation.
    2. Application for authorization from the Direcció General de Recursos Hídrics.
    3. Application for municipal building license for the well structure.
    4. Execution of the well.
    5. Legalization and registration of the well.
  • Important: Illegal wells are subject to significant penalties. Given the water scarcity in Ibiza, regulations are very strict, and obtaining a new well license can be challenging.

Can I have solar panels in my house in Ibiza?

Yes, you can absolutely install photovoltaic solar panels for self-consumption in your house in Ibiza. The Balearic Islands, with their abundant sunshine, are an ideal location for solar energy, and regional and national regulations have significantly simplified the procedures and offer incentives.

  • Requirements:
    • Technical Project: For most installations, a technical project drafted by a qualified engineer is required.
    • Municipal License/Prior Communication: Depending on the size and type of installation, a building license (licencia de obra) or a prior communication (comunicación previa) will be needed from your local municipal council (Ayuntamiento).
    • Legalization: The installation must be legalized before the Conselleria de Transició Energètica, Sectors Productius i Memòria Democràtica (or relevant department) of the Balearic Islands government and registered in the relevant registries.
    • Connection to Grid (for self-consumption with surpluses): If you plan to inject surplus energy back into the grid, you’ll need to sign a contract with your electricity retailer.
  • Incentives: The Balearic Government often offers grants and subsidies for self-consumption installations. There are also tax benefits, such as IBI deductions, at the municipal level.
  • Tip: It is highly advisable to work with a specialized company that can handle the entire process, from design and installation to legalisation and subsidy applications.

What are the requirements to install a septic tank in my house in Ibiza?

If your property in Ibiza is not connected to the municipal sewage network, you will need a septic tank or, more commonly for new installations, a wastewater treatment system. The installation of septic tanks is strictly regulated by environmental and urban planning laws of the Balearic Islands and local municipalities.

  • Requirements:
    • Technical Project: An engineer must design the system, including calculations for capacity based on the number of residents, the type of treatment, and the discharge method (e.g., to a leach field).
    • Municipal Building License: A license from your local municipal council (Ayuntamiento) is required for the civil works.
    • Environmental Authorization/Discharge Permit: Authorization from the Direcció General de Residus i Educació Ambiental (Directorate General of Waste and Environmental Education) or the Direcció General de Recursos Hídrics (for discharge into water bodies or subsoil) of the Balearic Islands government is mandatory. This ensures compliance with discharge quality standards.
    • Type of System: Modern regulations often require more than just a basic septic tank. They typically demand advanced compact wastewater treatment plants (Estaciones Depuradoras de Aguas Residuales – EDAR compactas) that offer a higher level of purification before discharge.
    • Maintenance: Regular maintenance and emptying by authorized companies are mandatory to ensure proper functioning and avoid environmental pollution.
  • Location: The septic tank or treatment plant must be located at a sufficient distance from wells, watercourses, and neighboring properties, according to regulations.
  • Tip: Engaging a specialized engineering firm is crucial to ensure compliance with all technical, urban planning, and environmental regulations, as non-compliance can lead to significant fines.

Can I have pets, cats or dogs in my Ibiza house?

Yes, you can certainly have pets (dogs or cats) in your house or apartment in Ibiza, provided you comply with national and local regulations regarding animal welfare and responsible ownership.

  • Key Regulations:
    • Animal Welfare Law: Spain’s national Animal Welfare Law (Ley de Bienestar Animal) establishes general guidelines for responsible pet ownership, including identification, vaccination, and prevention of abandonment.
    • Balearic Islands Regional Regulations: The Balearic Government has its own animal protection laws that complement the national law.
    • Municipal Ordinances: Each municipal council in Ibiza (Eivissa, Sant Antoni, Santa Eulària, Sant Josep, Sant Joan) will have its specific ordinances regarding pets. These typically cover:
      • Mandatory Identification: Microchipping for dogs (and often cats) is compulsory.
      • Vaccinations: Rabies vaccination is mandatory for dogs.
      • Registration: Pets must be registered with the municipal pet registry (Censo Canino or Censo de Animales de Compañía).
      • Leashing and Muzzling: Dogs must be walked on a leash in public. Potentially Dangerous Dogs (PPP – Perros Potencialmente Peligrosos) require specific licenses, muzzles, and strict control.
      • Excrement: Owners are obliged to collect and properly dispose of their pets’ excrement in public areas.
      • Noise: Ensuring your pet does not cause nuisance to neighbors (excessive barking).
  • Apartment Buildings: In community apartment buildings, the homeowners’ association (comunidad de propietarios) statutes may include specific rules regarding pets (e.g., use of common areas), but generally, they cannot prohibit pet ownership outright unless there’s a very strong, justified reason.

Can I have horses in my house in Ibiza?

Having horses on your property in Ibiza is possible, but it is generally restricted to properties on **rustic land (suelo rústico)** with sufficient acreage and requires strict adherence to specific regulations. It is not feasible in urban residential areas.

  • Requirements:
    • Zoning: Your property must be classified as rustic land that permits livestock activities. Urban plots are strictly out of the question.
    • Minimum Plot Size: There are typically minimum plot size requirements per animal to ensure adequate space for welfare and manure management.
    • Municipal License: A municipal license from the local City Council will be needed for the construction or adaptation of any stables, paddocks, or facilities for the horses.
    • Environmental and Health Permits: You will need permits from the Conselleria d’Agricultura, Pesca i Alimentació (or relevant department) of the Balearic Islands government, covering animal welfare, health (veterinary inspections, vaccinations), and waste management (manure disposal plans).
    • Registration: Both the facilities and the animals must be registered in the official livestock registries.
    • Distance Regulations: Stables and manure pits must be located at specific distances from dwellings, water sources, and public roads to prevent nuisances and contamination.
  • Professional Advice: Given the complexity and strict environmental regulations in Ibiza, it is highly recommended to consult with a specialized architect or engineer and a lawyer who can advise on the feasibility and legal requirements for keeping horses on your specific property.

Buying a House in Ibiza

General tips and recommendations

Buying a property in Ibiza, while exciting, requires careful consideration due to the island’s unique market and legal specificities. Here are general tips and recommendations:

  • Hire a local Valencian qualified Lawyer: This is **essential** for any property purchase in Spain, especially in Ibiza due to its high value properties and international clientele. A lawyer specializing in real estate law in Ibiza (or the Balearic Islands) will be your strongest advocate.
  • Check the Property’s Legal Status – Legal Searches: Your lawyer will perform thorough due diligence (due diligence) on the property:
    • Simple Note from the Property Registry (Nota Simple): To verify true ownership, identify any encumbrances (mortgages, liens, easements), and confirm the exact legal description of the property (size, boundaries). This is fundamental.
    • Community Debt Certificate: If it’s part of a community of owners, to ensure there are no outstanding debts with the homeowners’ association.
    • IBI Debt Certificate (Real Estate Tax): To confirm that the annual property tax is up to date.
    • Utilities Debts: Check for any outstanding water, electricity, or gas bills.
  • Review the Property’s Building Specifications: Beyond the legal status, your lawyer or a technical expert should check:
    • The general condition of the building, common areas, approved or pending special assessments (derramas) in community buildings.
    • For villas/fincas, the condition of the structure, roof, installations, and any potential issues.
  • Ensure Urban Compliance: This is crucial in Ibiza. Your lawyer will verify that:
    • The property has all necessary building licenses (licencia de obra) for its original construction and any subsequent extensions or renovations.
    • It complies with the current General Urban Planning Plan (Plan General de Ordenación Urbana – PGOU) of the specific municipality and the regional land planning laws of the Balearic Islands.
    • There are no open urban planning infractions or demolition orders. Unregistered extensions are common and can cause significant problems.
    • The property has a valid Certificate of Habitation (Cédula de Habitabilidad or Licencia de Primera/Segunda Ocupación).
  • Secure a Mortgage Pre-Approval: If you need financing, obtain pre-approval from a bank before you start seriously looking. This clarifies your budget and strengthens your offer.
  • Review and Understand All Contracts: Your lawyer will meticulously review all contracts, especially the reservation contract, earnest money contract (contrato de arras), and the final purchase agreement.
  • Pay Attention to the Deposit Agreement: This contract (Contrato de Arras) is legally binding and establishes the terms of the reservation and the penalties if either party backs out.

DO NOT SIGN THE DEPOSIT AGREEMENT WITHOUT THE PREVIOUS CONSENT OF YOUR LAWYER!!

This is critical. Once signed, backing out can mean losing your deposit or facing legal action.


  • Arrange for a Property Survey: For significant investments like villas or fincas, consider hiring a technical expert (architect or quantity surveyor) for a detailed inspection of the structural condition, installations (plumbing, electricity), and detection of any hidden defects.
  • Plan for Additional Costs: Besides the purchase price, budget an additional **10-15%** for taxes, notary and registry fees, and legal fees. In Ibiza, these can be substantial due to the higher property values.
  • Purchase Title Insurance: While not as common as in some countries, some lawyers may recommend it or explain its equivalents in Spain. Your lawyer’s due diligence is your primary protection.
  • Completion and Registration: The purchase is formalized before a notary (Escritura Pública de Compraventa), and then the new ownership is registered in the Property Registry.
  • NIE Number: This is essential for any foreigner (resident or non-resident) who wants to buy property or carry out economic transactions in Spain. It is requested at a National Police Station (by appointment) or at Spanish Consulates abroad.
  • Post-Purchase: After the purchase, you’ll need to change utilities (water, electricity, gas) to your name, register with the local council (empadronamiento), inform the homeowners’ association, and set up direct debits for recurring payments like IBI.
  • Cultural and Linguistic Considerations: While Spanish (Castellano) is the official language, Catalan (specifically the Ibizan dialect, Eivissenc) is co-official and widely spoken. All legal documents will be in Spanish and/or Catalan, so if you’re not fluent, an English-speaking lawyer is invaluable.

Expenses and taxes when buying a house in Ibiza

The taxes and expenses when buying a property in Ibiza are determined by national and Balearic Islands regional regulations. The rates of the **Balearic Islands Autonomous Community** will apply, which are generally higher than in some other regions of Spain.

  • Buying a New Build Property (Obra Nueva): These are properties sold directly by the developer/promoter.
    • VAT (IVA – Impuesto sobre el Valor Añadido): 10% of the purchase price for residential property.
    • Stamp Duty (AJD – Actos Jurídicos Documentados): 1.5% of the purchase price in the Balearic Islands.
  • Buying a Resale Property (“Segunda Mano”): These are properties sold by an individual.
    • Property Transfer Tax (ITP – Impuesto de Transmisiones Patrimoniales): This is the main tax, applied to the purchase price or the Reference Value (whichever is higher). In the Balearic Islands, the rates are progressive and generally higher than the national average:
      • Up to €400,000: 8%
      • From €400,001 to €600,000: 9%
      • From €600,001 to €1,000,000: 10%
      • Over €1,000,000: 11%
      • There are reduced rates for certain groups (e.g., young people, disabled, large families) and for social housing, so it’s important to check eligibility.
  • Common Expenses in Both Cases:
    • Notary Fees: According to legal tariffs, based on the property price (approximately 0.2% – 0.5% of the purchase price).
    • Property Registry Fees: According to legal tariffs, based on the property price (approximately 0.1% – 0.25%).
    • Lawyer’s Fees: Negotiable, typically around 1% (plus VAT) of the purchase price, or a fixed fee. Essential for due diligence and protecting your interests.
    • Gestoría Fees (optional): If you hire a gestoría to process taxes and registration after the notary signature (approx. €300-€600).
    • Appraisal Fees (if there is a mortgage): Necessary for the bank to value the property (€300-€600+).
    • Mortgage Expenses: Since the new mortgage law (2019), most mortgage setup costs (notary, registry, gestoría, and mortgage stamp duty) are borne by the bank. The client typically only pays for the appraisal and their own copy of the deed.

Important Tips:

  • Budget an additional **10-15%** (or even more for very high-value properties due to the progressive ITP) on top of the purchase price to cover all these taxes and expenses.
  • A lawyer or tax advisor can provide a precise calculation based on the specific property and your situation.

Example or costs, taxes and expenses when buying a house in Ibiza – Mortgage expenses also!

An example, for a €1,000,000 resale property, you’d calculate 10% ITP (€100,000) + Notary/Registry fees (say 0.4% = €4,000) + Lawyer’s fees (say 1% = €10,000). So total additional costs would be around €114,000.


Owning a house in Ibiza – Taxes, maintenance, and costs

Once you own a property in Ibiza, there are ongoing annual expenses and taxes to consider:

Taxes and expenses to own a house in Ibiza

  • IBI (Impuesto sobre Bienes Inmuebles – Real Estate Tax):

    An annual municipal tax paid to your local municipal council (e.g., Ayuntamiento de Eivissa, Sant Josep, etc.). It’s based on the cadastral value of the property. The tax rate in Ibiza varies by municipality but is typically between 0.4% and 1.1% of the cadastral value.

  • Income Tax (Impuesto sobre la Renta de las Personas Físicas – IRPF):

    • If it’s your main residence (for residents): Generally, no imputed income is taxed for your primary home.
    • If it’s a second residence (not rented, for residents): An annual imputed income (generally 1.1% or 2% of the cadastral value, depending on its update) is taxed on your income tax return.
    • If it’s rented (for residents): Rental income is declared under IRPF. You can apply deductions, and if rented for permanent housing, a significant reduction (e.g., 50% or more under new housing laws, check current regulations).
  • Non-Resident Income Tax (IRNR – Impuesto sobre la Renta de No Residentes):

    • If you are a non-resident and the property is not rented: You must pay IRNR annually on an imputed income (1.1% or 2% of the cadastral value).
    • If you are a non-resident and the property is rented: You must declare rental income quarterly via IRNR.
  • Municipal Capital Gains Tax (Plusvalía Municipal – Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana):

    This tax is only paid when a property is SOLD, not annually. It taxes the theoretical increase in the value of the urban land component of the property from the date of purchase to the date of sale. Paid by the seller.

  • Wealth Tax on Ibiza Assets (Impuesto sobre el Patrimonio):

    This is a state tax devolved to the Autonomous Communities. In the Balearic Islands, it applies to net assets (assets minus debts) exceeding a certain exemption threshold (currently €700,000 per person, with an additional exemption for the main residence up to €300,000). The tax rate is progressive. This can be significant for high-value properties in Ibiza.

  • Community Fees:

    If the property is part of a community of owners, you will pay monthly or quarterly fees for the maintenance of common areas (cleaning, elevator, electricity, gardens, swimming pool, security). These can be substantial in luxury developments.

  • Utilities:

    Water, electricity, gas (if applicable), internet, and telephone.

  • Insurance:

    Home insurance is mandatory if you have a mortgage; highly recommended in any case to protect your investment.

  • Maintenance:

    Regular upkeep of the property, especially important for villas with gardens and pools, given Ibiza’s climate.

What is the Income Tax in Ibiza and how to pay

The Income Tax is part of the **Impuesto sobre la Renta de las Personas Físicas (IRPF)** for residents or **Impuesto sobre la Renta de No Residentes (IRNR)** for non-residents.

  • For Residents: You declare all your worldwide income (employment, self-employment, capital gains, rentals, etc.) annually in your IRPF declaration, which is filed with the **Agencia Tributaria (AEAT)**. The tax rates are progressive and include state and regional (Balearic Islands) components.
  • For Non-Residents (property owners):
    • If the property is **not rented**, you pay annual IRNR on the imputed income (1.1% or 2% of cadastral value).
    • If the property is **rented**, you pay quarterly IRNR on the rental income.

How to Pay:

  • IRPF is typically paid via direct debit if filed online, or at collaborating banks.
  • IRNR forms can be paid at collaborating banks or online via the AEAT’s electronic headquarters.

Tax offices in Ibiza and Balearic Islands Province

While the overall tax authority is the **Agencia Tributaria (AEAT)**, tax offices are distributed across the Balearic Islands.

  • Tax Agency (AEAT) in Ibiza:
    • Administración de la Agencia Tributaria en Ibiza: C/ Múrcia, 16, 07800 Eivissa, Illes Balears. This office handles most national tax matters (IRPF, VAT, Corporate Tax, IRNR).
  • Tax Agency (AEAT) – Special Delegation of the Balearic Islands:
    • Delegación Especial de la AEAT en Illes Balears: Carrer de les Caputxines, 4, 07003 Palma, Illes Balears. This is the main regional office.
  • Agency of Tax Administration of the Balearic Islands (ATIB – Agència Tributària de les Illes Balears):
    • This is the regional tax agency responsible for collecting taxes specific to the Balearic Islands Autonomous Community, such as the Property Transfer Tax (ITP), Inheritance and Gift Tax (ISD), and Wealth Tax.
    • ATIB Office in Ibiza: You can find a local ATIB office in Ibiza Town (e.g., C/ Aragó, 14, 07800 Eivissa, Illes Balears) where you can process regional taxes. Always check their official website for updated addresses and services.
  • Local Municipal Councils (Ayuntamientos): Your local municipal council (e.g., Ayuntamiento de Eivissa) is responsible for collecting municipal taxes like IBI and Municipal Capital Gains Tax.

The list of numerous tax offices you provided (Alzira, Catarroja, etc.) pertains to the province of Valencia, not Ibiza. In Ibiza, you primarily deal with the AEAT office in Ibiza and the ATIB office in Ibiza.

Selling a house in Ibiza

Selling a property in Ibiza involves various taxes and expenses, which can be substantial given the high property values.

How much taxes to pay when selling a house in Ibiza?

  • Municipal Capital Gains Tax (Plusvalía Municipal – Impuesto sobre el Incremento del Valor de los Terrenos de Naturaleza Urbana): Paid by the seller to the local municipal council (Ayuntamiento). It taxes the increase in the value of the urban land during the period the property was owned. The calculation considers the cadastral value of the land and the number of years the property was held.
  • Capital Gains Tax (IRPF – Impuesto sobre la Renta de las Personas Físicas):
    • For Residents: If you make a profit from the sale (sale price minus purchase price and related expenses), this capital gain is taxed in your annual IRPF declaration. The rates are progressive, ranging from 19% to 28% (for 2024) depending on the amount of the gain. Exemptions apply for reinvestment in a main residence (under certain conditions) or for sellers over 65 years old (for the sale of their main residence).
  • Income Tax for Non-Residents (IRNR – Impuesto sobre la Renta de No Residentes):
    • For Non-Residents: If the seller is a non-resident for tax purposes in Spain, the buyer is legally obliged to withhold and pay 3% of the sale price to the Spanish Tax Agency (AEAT) on behalf of the seller. This is a payment on account of the non-resident’s capital gains tax. The seller must then file an IRNR tax return (Form 210) to declare the actual capital gain and either pay the difference or claim a refund if the 3% withheld was more than the final tax due. The tax rate on the capital gain for non-residents is currently 19%.
  • Real Estate Agent Fees: If you use a real estate agency, their fees are typically paid by the seller. These are negotiable but often range between 3% and 5% (plus VAT) of the sale price, especially given the high values in Ibiza.
  • Notary and Property Registry Fees: By law, the seller pays the original deed of sale (“escritura matriz”), and the buyer pays the first authorized copy and the registration fees. However, it is common to agree on a different distribution.
  • Lawyer and Solicitor Fees: Highly advisable for the seller to engage a lawyer to review the process, prepare necessary documents, ensure all legal and tax obligations are met, and advise on optimal taxation.
  • Mortgage Cancellation Fees: If there’s an outstanding mortgage on the property, it must be cancelled at the time of sale. This involves notary, registry, and gestoría fees for the cancellation process.
  • Energy Performance Certificate (EPC – Certificado de Eficiencia Energética): Mandatory for selling or renting a property. It must be valid and no more than 10 years old (unless major renovations have been done).
  • Renovation of the Certificate of Habitation: If your property’s Certificate of Habitation (Cédula de Habitabilidad / Licencia de Segunda Ocupación) has expired or is nearing expiration, it is advisable to renew it before the sale, as it is a required document for the buyer to connect utilities.
  • Updating constructions on your property: If you have carried out any extensions, renovations, or new constructions that are not legally registered (e.g., in the Property Registry and Cadastre), you will need to legalize and register them before the sale. This involves projects, municipal licenses, and registration fees, which can be costly and time-consuming. Failure to do so can significantly complicate or even prevent a sale.

Other Possible Costs

Certificate of being up to date with the homeowners’ association fees, utility bills up to the date of sale, communal expenses for the current quarter.

Renting a house in Ibiza

The rental market in Ibiza is unique due to high seasonality and intense tourist demand. Long-term rentals for residents are scarce and expensive, while tourist rentals are highly regulated.

Which are the best areas for rent in Ibiza?

  • For Tourists (Short-term / Airbnb):
    • Ibiza Town (Eivissa): Dalt Vila (for historic charm), Marina Botafoc/Talamanca (for luxury, marina, and beach access), Figueretes (for beach and nightlife proximity).
    • Platja d’en Bossa: Known for large clubs and beach resorts, popular with party-goers.
    • Sant Antoni: For sunset views and lively atmosphere.
    • Santa Eulària: For families and a more relaxed, upscale vibe.
    • Sant Josep / Es Cubells: For luxury villas with privacy and stunning views.
  • For Residents (Long-term):
    • Santa Gertrudis: Inland, central, popular with expats and families for its village charm and amenities.
    • Rural areas: Towards Sant Joan or the quieter parts of Sant Josep/Santa Eulària, offering a more peaceful lifestyle, often requiring a car.
    • Outskirts of Ibiza Town: Areas like Can Misses, Ses Figueretes (away from the direct tourist hustle) for easier access to services.

Which are the most rented areas in Ibiza by Airbnb?

The most demanded areas for tourist rentals (and therefore where Airbnb activity is highest) are typically **Ibiza Town (especially Dalt Vila, Marina Botafoc, Figueretes), Platja d’en Bossa, and Sant Antoni de Portmany**. These are zones with high tourist traffic and established infrastructure for visitors.

What are the costs for renting a house in Ibiza?

  • Deposit (Fianza): Mandatory, equivalent to one month’s rent, which is deposited with the Conselleria d’Habitatge of the Balearic Islands.
  • Additional Guarantees: The owner may request an additional guarantee (up to two months’ rent) or a bank guarantee, especially for high-value properties or tenants without strong local ties.
  • Agency Fees (if applicable): Since the new housing law, if the landlord is a legal entity (company), the fees for real estate agency services for long-term rentals are paid by the landlord. If the landlord is a natural person, the fee structure must be negotiated, but commonly the landlord pays. For tourist rentals, agency fees are typically paid by the guest or split.
  • First Month’s Rent.

Taxes (for the Landlord):

  • Income Tax (IRPF): Rental income must be declared in your IRPF (for residents) or IRNR (for non-residents). For long-term residential rentals, significant reductions on net income may apply (e.g., 50% or 90% under the new housing law for permanent housing). Tourist rentals generally do not benefit from these reductions unless the property is also offered as a main residence.
  • Property Transfer Tax (ITP): For the tenant, this tax applies to the rent. The amount is usually very low (e.g., for a €1,500/month rent for a 5-year contract, the total ITP would be around €360). It is often overlooked but legally due.

Other Costs:

  • Utilities: Water, electricity, gas, internet. Usually borne by the tenant.
  • Community Fees: Usually paid by the owner unless explicitly agreed otherwise in the contract.

Considerations for Non-Residents:

If you are a non-resident and rent out a property in Ibiza, your rental income is taxed through the Non-Resident Income Tax (IRNR), typically quarterly. It is highly advisable to have a tax advisor.

Keep in Mind:

  • The high demand and limited supply mean finding a long-term rental, especially before the summer, can be very challenging in Ibiza.
  • Be wary of scams; always use reputable agents and ensure all documents are legally sound.

How to get tourist license in Ibiza

Obtaining a Tourist Use Dwelling (Vivienda de Uso Turístico – VUT) License in Ibiza is **highly regulated and very restricted**, especially for apartments. The Balearic Islands have some of the strictest regulations in Spain to protect residential housing and control mass tourism. The regulation depends on the Consell Insular d’Eivissa and the specific municipal councils.

  1. Ensure Your Property is Eligible:
    • Zoning Restrictions: This is the biggest hurdle. Many areas, particularly multi-family buildings (apartments), are **not permitted** for tourist rental activity. Only specific zones and types of properties (e.g., detached villas on rustic land or in specific tourist zones) may obtain a license.
    • It must have a **First Occupation License** or **Responsible Declaration of Second Occupancy** and comply with all habitability requirements.
    • It must have an **Energy Performance Certificate**.
    • It must meet specific technical and equipment characteristics required by regional regulations (e.g., minimum number of bathrooms per bedroom, air conditioning, fire extinguishers, first aid kit).
    • Homeowners’ Association Statutes: If it’s part of a community, the statutes of the homeowners’ association **must not prohibit or restrict** tourist rentals. In recent years, many communities have moved to ban them.
  2. Registration and Application:
    • If your property is eligible, you must submit a **Responsible Declaration of Commencement of Vacation Rental Activity (Declaración Responsable de Inicio de Actividad Turística)** to the Consell Insular d’Eivissa.
    • The dwelling will be registered in the **Register of Tourism Companies and Activities of the Balearic Islands (REAT)**, and a registration number will be assigned that **must** appear in all advertising (online platforms like Airbnb, Booking.com, etc.).
    • Additionally, some municipalities may require a **Prior Communication** or specific municipal license for the activity.

Important Considerations:

  • High Fines for Illegal Rentals: The Balearic authorities impose **very severe fines** for operating a tourist rental without a valid license. Controls are strict.
  • Saturation Zones: Due to the “Ley Turística” (Tourism Law) and subsequent amendments in the Balearic Islands, new tourist licenses for apartments in urban areas are largely **frozen or prohibited** in saturation zones. Only detached houses or villas on rustic land or in specifically designated tourist zones may have a chance.
  • Taxation: Income from tourist rentals is taxed under IRPF (or IRNR for non-residents) as economic activities or real estate capital income, depending on the services provided.

Squatters and “Okupas” in Ibiza. Is this a real problem?

“Okupación” (illegal occupation of properties) is a concern in Spain, but in Ibiza, while cases do occur, the nature of the problem is somewhat different than in other parts of the mainland.

  • Is it a real problem in Ibiza?

    • Compared to the volume of properties on the island, the “okupación” of **inhabited homes or regularly used second homes by private individuals is relatively uncommon**. When it happens, it is usually quickly addressed as a case of trespassing.
    • The majority of “okupa” cases in Ibiza tend to involve **abandoned properties, properties owned by banks or large corporate holders, or sometimes, properties that are empty for long periods during the off-season**. There have been cases of properties illegally occupied during the winter months when owners are abroad.
    • The high value of property in Ibiza means that owners are generally more vigilant and willing to take immediate legal action.
  • How to avoid squatters or “okupas” in my house in Ibiza?

    • Maintain signs of occupancy: Even if it’s a second home, make it look lived-in. Use timers for lights, arrange for mail collection, and have someone regularly visit and check on the property (a reliable neighbor, property manager, or cleaning service).
    • Enhanced security systems: Install alarms connected to a security company, security doors, reinforced windows, and possibly surveillance cameras.
    • Regular checks: If you live off-island, hire a trusted property management company to carry out regular inspections.
    • Secure all access points: Ensure all windows, doors, and potential entry points are properly secured.
    • Get home insurance: Many comprehensive home insurance policies in Spain now offer specific coverage against “okupación,” which can include legal defense, locksmith services, and even compensation for damages.
    • Act immediately: If you discover an occupation, report it to the National Police or Guardia Civil immediately. The sooner you report (ideally within the first 48 hours, as it can then be treated as a flagrant crime of trespassing), the faster and simpler the eviction process will be.

Lawyers practice in Ibiza

Ibiza has a well-established legal community, with numerous law firms and independent lawyers specializing in various areas, reflecting the island’s unique legal needs, particularly in real estate, tourism, and international matters.

How to be registered as a lawyer in Ibiza – Ibiza – “Bar Association”

  • To practice law in Ibiza, a law graduate must hold a Master’s degree in Law, pass the national Bar Exam (Prueba de Acceso a la Abogacía), and then register with a Bar Association. Lawyers practicing in Ibiza typically register with the **Ilustre Colegio de Abogados de las Illes Balears (ICAIB)**, which is the Bar Association for the entire Balearic Islands.
    • The main headquarters of the ICAIB is in Palma de Mallorca.
    • However, the ICAIB has a **Delegation in Ibiza** (Delegación de Ibiza del ICAIB) located in the Ciudad de la Justicia (City of Justice) in Ibiza Town (Avinguda de la Pau, s/n, 07800 Eivissa). This local delegation provides services to lawyers practicing on the island and is the point of contact for many professional matters.

What are the costs of a Lawyer in Spain to represent in a property transaction?

Lawyers’ fees in Spain are freely set and negotiated between the lawyer and the client. There are no fixed tariffs established by the Bar Associations for specific services like property transactions.

  • For a property purchase or sale transaction, fees can typically range:
    • Between **0.8% and 1.5% of the purchase price** (plus VAT). This percentage often decreases for very high-value properties.
    • Alternatively, a **fixed fee** for the complete service is common, which can vary from €2,000 to €10,000 or more, depending on the complexity of the operation, the property’s value, and the specific services included (e.g., tax advice, due diligence for complex urban planning issues).
  • It is **fundamental to request a detailed written quote (hoja de encargo or presupuesto)** before engaging any legal services, clearly outlining the scope of work and associated fees.

How to choose the Best Lawyer for Property/real estate lawyers for buying or selling a house in Ibiza

  • Specialization: Look specifically for lawyers or law firms that specialize in **Real Estate Law and Urban Planning Law** (Derecho Inmobiliario y Urbanístico). This is crucial, especially in Ibiza where urban planning regulations can be complex.
  • Local Experience: Choose a lawyer with proven experience in Ibiza and the Balearic Islands. They will be familiar with local regulations, specific municipal planning, the Cadastre, Property Registry offices on the island, and the local nuances of the real estate market.
  • Reputation and Recommendations: Seek recommendations from trusted sources (expats, local residents, reputable real estate agents). Check online reviews and professional associations.
  • Language Proficiency: If you are not fluent in Spanish, ensure the lawyer (or a member of their team) is fluent in English (or your preferred language) and can explain legal concepts clearly.
  • Transparency and Communication: The lawyer should be transparent about their fees, the legal process, potential risks, and timelines. They should maintain fluid communication and keep you informed at every step.
  • Availability: Ensure they are accessible and responsive to your queries.

Lawyers’ services in Ibiza (Types of Lawyers)

Ibiza’s legal landscape caters to its diverse population and economic activities:

  • Real Estate and Urban Planning Lawyers:

    Essential for property purchases/sales, rentals, building licenses, urban compliance, legalisation of existing structures, and advice on building regulations. Given the strict urban planning in Ibiza, this specialization is critical.

  • Property and Construction Dispute Lawyers:

    Specializing in litigation related to property (e.g., boundary disputes, hidden defects, breach of contract, non-payment of rent, eviction).

  • Civil Lawyers:

    For general civil matters such as contracts, family law (divorce, child custody), inheritances, civil liability, and debt claims.

  • Inheritance Lawyers (Succession Law):

    For wills, heir declarations, asset distribution, and inheritance tax planning.

  • International Inheritance and Succession Lawyers:

    Crucial for non-resident clients or those with assets/heirs in multiple countries, navigating both Spanish and foreign inheritance laws.

  • Criminal Lawyers:

    Defense or prosecution in criminal cases.

  • Labor Lawyers:

    For employment contracts, dismissals, wage claims, workplace harassment.

  • Tax or Fiscal Lawyers:

    Advice and defense on national, regional (Balearic Islands), and local tax matters (IRPF, IRNR, Wealth Tax, ITP, ISD, IBI, Municipal Capital Gains Tax), crucial for property owners and businesses.

  • Corporate Lawyers:

    For company formation, commercial contracts, mergers, acquisitions, and bankruptcy proceedings, particularly relevant for businesses in the tourism and hospitality sectors.

  • Immigration Lawyers:

    For residence permits, visas, Spanish nationality applications, and general advice on living legally in Spain.

  • International Orientation Lawyers:

    Many firms in Ibiza specifically cater to the international community, understanding the complexities of cross-border legal issues.

  • English speaking lawyers and solicitors in Ibiza:

    Due to the high number of British residents and visitors, many lawyers offer services in English.

  • French speaking lawyers in Ibiza:

    For the French-speaking community.

  • Dutch/Netherlands speaking Lawyers in Ibiza:

    For the Dutch-speaking community.

  • German speaking Lawyers in Ibiza: For the significant German-speaking community on the island.

Tribunals and Courts of Justice in Ibiza

Ibiza has its own judicial district with local courts for most common legal matters, although the higher courts for the Balearic Islands are located in Palma de Mallorca.

  1. Superior Court of Justice of the Balearic Islands (Tribunal Superior de Justícia de les Illes Balears – TSJIB): Located in **Palma de Mallorca** (Antic Carrer de la Joventut, 1, 07003 Palma). This is the highest judicial body within the autonomous community of the Balearic Islands.
  2. Provincial Court of the Balearic Islands (Audiencia Provincial de les Illes Balears): Also in **Palma de Mallorca** (Pl. del Mercat, 12, 07001 Palma). It hears appeals against judgments from the Courts of First Instance and Instruction.
  3. Courts of First Instance (Juzgados de Primera Instancia – in Ibiza): Deal with civil matters (contracts, family law, inheritances, property disputes, claims for payment, civil responsibility). Several of these are located in the City of Justice in Ibiza.
  4. Criminal Investigative Courts (Juzgados de Instrucción – in Ibiza): Investigate crimes and deal with minor criminal cases. Several in the City of Justice.
  5. Criminal Courts (Juzgados de lo Penal – in Ibiza): Hear cases for crimes punishable by prison sentences of up to five years.
  6. Labor Courts (Juzgados de lo Social – in Ibiza): Deal with labor and Social Security conflicts (dismissals, wage claims).
  7. Contentious-Administrative Courts (Juzgados de lo Contencioso-Administrativo – in Ibiza): Resolve disputes against public administrations (fines, licenses, urban planning decisions, expropriations).
  8. Violence Against Women Courts (Juzgados de Violencia sobre la Mujer – in Ibiza): Specialized courts dealing with gender violence crimes.
  9. Civil Registry (Registro Civil – in Ibiza): For registrations of births, marriages, deaths, and nationality applications.
  10. Juvenile-Minors Courts (Juzgados de Menores – in Ibiza): Deal with crimes committed by minors.
  • City of Justice of Ibiza (Ciutat de la Justícia d’Eivissa): Most of Ibiza’s local courts (First Instance, Instruction, Criminal, Labor, Contentious-Administrative, Violence Against Women, Minors, and Civil Registry) are grouped together in the **City of Justice** building on Avinguda de la Pau, s/n, 07800 Eivissa, facilitating access to legal services.

Notarial Services

  • List of Notaries in Ibiza City and Island:

    Ibiza has several notary offices distributed in the main towns. You can find an updated list on the official website of the General Council of Notaries (Consejo General del Notariado) or by searching “notaría Ibiza” in local directories. These include offices in Eivissa, Sant Antoni, and Santa Eulària.

  • Do I need a lawyer or a notary to buy a house in Ibiza city?

    • You need both, as they have distinct but equally necessary roles.
    • Notary: Is a public official whose primary role is to provide public faith (legal certainty) to documents. The notary drafts and authorizes the public deed (Escritura Pública) of purchase, verifies the identity of the parties, ensures legal capacity, and certifies that the document complies with the law. They are impartial and do not represent either the buyer or the seller.
    • Lawyer: Is your personal legal advisor. Their role is to **defend your specific interests** throughout the entire process. They conduct exhaustive legal due diligence on the property (checking for encumbrances, urban planning compliance, debts), advise you on the legal and tax implications, negotiate terms, draft and review all private contracts (deposit, purchase agreement), and accompany you throughout the process to ensure a secure transaction.
  • Why a lawyer is needed in a purchase/sale transaction?

    • Protection of Interests: Unlike the notary, who is impartial, your lawyer is **your advocate**, ensuring your rights and interests are protected.
    • Comprehensive Legal Verification: A lawyer goes far beyond the notary’s review. They investigate the property’s status in the Cadastre, the Property Registry, urban planning departments, and with the homeowners’ association, identifying any potential hidden problems (e.g., unregistered constructions, urban planning infractions, outstanding debts).
    • Drafting and Review of Contracts: The lawyer negotiates and drafts the private contracts (earnest money agreement, private purchase agreement) that define the terms of the operation, ensuring clauses are fair and favorable to you.
    • Tax Advice: They will inform you about all applicable taxes (national, regional, municipal) and advise on how to optimize the taxation of the operation.
    • Problem Prevention: A good lawyer identifies and resolves potential problems *before* they turn into costly litigation, saving you time, money, and stress.

Inheritance Process in Ibiza

The inheritance process in Ibiza follows Spanish national inheritance law and the specific tax regulations of the **Balearic Islands Autonomous Community** regarding Inheritance and Gift Tax (Impuesto de Sucesiones y Donaciones – ISD).

What to do in an inheritance process in Ibiza

  1. Obtain the Death Certificate:

    • This is the first step. It is requested at the **Civil Registry of Ibiza (Registro Civil de Eivissa)**, which is located in the City of Justice in Ibiza Town, where the person died or where their death was registered.
  2. Get the Certificates of Last Will and Testament and Life Insurance Policies:

    • These certificates are requested from the Ministry of Justice in Madrid.
    • The **Certificate of Last Will and Testament (Certificado de Últimas Voluntades)** indicates whether the deceased left a will and, if so, which notary authorized it.
    • The **Certificate of Life Insurance Policies (Certificado de Contratos de Seguros de Cobertura de Fallecimiento)** indicates if the deceased had any life insurance.
  3. Locate the Will or Declaration of Heirs:

    • If there is a Will: Once you have the Certificate of Last Will and Testament, you go to the notary indicated to obtain an authorized copy of the will.
    • If there is no Will (Abintestato – Intestate): If no will was found, a **Declaration of Heirs (Declaración de Herederos Abintestato)** must be made before a notary (usually in the last place of residence of the deceased). This legal document determines who the legal heirs are according to Spanish law.
  4. Inventory and Valuation of the Estate:

    • The heirs, with the help of a lawyer, must compile a detailed list of all the deceased’s assets (properties, bank accounts, vehicles, shares, valuables) and debts (mortgages, loans, outstanding bills) and assign a value to each asset and liability.
  5. Liquidation and Payment of Inheritance Tax (Impuesto de Sucesiones y Donaciones – ISD):

    • This is a regional tax. In the Balearic Islands, specific regulations apply, which may include significant reductions or bonuses for inheritances between close relatives (descendants, ascendants, spouses).
    • The tax must be filed and paid at the **Agència Tributària de les Illes Balears (ATIB) in Ibiza** (or Palma) within a period of six months from the date of death. An extension of another six months can be requested, but it incurs interest.
  6. Adjudication and Distribution of the Inheritance:

    • Once the Inheritance Tax is paid or settled, the heirs formalize the acceptance and distribution of the assets before a notary through the **”Escritura de Partición de Herencia” (Deed of Partition of Inheritance)**.
  7. Registration in the Corresponding Registries:

    • If the inheritance includes real estate, the new ownership must be registered in the **Property Registry of Ibiza**. Other assets (vehicles, shares) must also be updated in their respective registries (e.g., Dirección General de Tráfico, banks).

Tip: Given the legal and fiscal complexity of inheritance processes, especially for non-residents or those with properties and assets in Ibiza, it is **highly recommended to hire a lawyer specialized in inheritances (particularly international inheritances)** to guide you through the entire process and ensure proper compliance with all requirements and tax obligations.