Ibiza is more than a paradise island — it’s a strategic location for luxury real estate investment.
If you’re a foreign buyer looking to purchase a villa in Ibiza, understanding the legal framework, tax implications, and market opportunities is key to making a successful and profitable investment.
Why Invest in Ibiza Real Estate?
With its stunning coastline, vibrant lifestyle, and global prestige, Ibiza remains one of the most desirable property markets in Europe. Demand for luxury homes in Ibiza has remained strong, even in uncertain times — driven by limited supply, international interest, and the island’s unique blend of exclusivity and natural beauty.
1. Legal Requires For Foreing Buyers
The good news? Foreigners can freely buy property in Spain, including Ibiza. However, there are a few key requirements:
- NIE Number: You’ll need a Número de Identificación de Extranjero (NIE), which is essential for any property transaction.
- Bank Account in Spain: Required for managing payments, taxes, and utilities.
- Legal Representation: Hiring a local lawyer or advisor is highly recommended to handle contracts, due diligence, and registry processes.
At Ibiza Country Villas, we guide our international clients through every legal step, ensuring a seamless buying experience.
2. Taxes and Costs You Should Know
When purchasing a villa in Ibiza, investors must account for several taxes and fees. Here’s a breakdown:
| CONCEPT | % / RANGE |
| Property Transfer Tax (ITP) | 8–11% (resale properties) |
| VAT (IVA) | 10% (new builds) |
| Notary + Registry Fees | ~1.5% |
| Legal Fees | ~1% |
| Annual Property Tax (IBI) | Varies by location |
In addition, non-residents must declare their property for tax purposes in Spain, even if they don’t rent it out.
3. Rental ROI: Is It Worth It?
Yes — especially in high-demand areas. Many buyers generate income by renting out their villas during the summer season. Short-term rental licenses are required, and properties that qualify can yield ROI between 5–8% annually, depending on size, location, and amenities.
Hotspots like Es Cubells, Talamanca, Cap Martinet, and San José consistently attract high-end renters.
4. Where to buy: High-Yield Investment Locations
Not all parts of Ibiza are created equal. These are some of the top-performing areas for real estate value and rental potential:
- Santa Eulalia – Elegant, family-friendly, with growing demand.
- San José (Sant Josep) – Home to some of the island’s most luxurious villas.
- Talamanca & Cap Martinet – Proximity to Ibiza Town, ideal for high-end renters.
- North Ibiza (San Juan) – Increasingly popular for eco-luxury and privacy.
5. Why work with Ibiza Country Villas
- Tailored property selection
- Legal and tax guidance
- Turnkey rental management solutions
Ready to Buy a Villa in Ibiza?
Explore our curated selection of luxury homes in Ibiza or get in touch for a personalized consultation. Let us help you turn your investment into a lifestyle.