Taxes and costs when buying a home in Menorca: what you'll pay in 2026

Buying a home in Menorca means paying between 9% and 13% on top of the purchase price in taxes and fees. The exact figure depends on whether the property is new or resale, its price, and the professional services involved. This guide breaks down every item with the figures in force in 2026.

How much does it cost in total to buy a home in Menorca?

As a general rule, a buyer in Menorca should budget an additional 9% to 13% on top of the deeded price. For a mid-priced resale home, the extra cost is around 9-10%; for high-value properties, the progressive taxation of the Balearic Islands pushes that figure up to 13-14%.

This additional cost has three components: taxes (ITP, or VAT + stamp duty, depending on the property type), formalisation fees (notary, land registry, gestoría) and optional but advisable professional services (independent lawyer, valuation if there is a mortgage).

What taxes apply when buying a resale home in Menorca?

Resale property purchases in Menorca are subject to the Property Transfer Tax (ITP), which in the Balearic Islands is progressive by brackets and ranges from 8% to 13%. It is always paid by the buyer and is calculated in tiers, like income tax: each rate applies only to the portion of the price falling within its bracket.

ITP scale in the Balearic Islands in force in 2026:

One important detail: ITP is calculated on the higher of the cadastral reference value and the deeded price. If the reference value exceeds the agreed price, the tax base will be that reference value.

What taxes apply when buying a new-build home in Menorca?

New-build homes (first transfer) do not pay ITP: they are subject to VAT at 10% plus Stamp Duty (AJD), which in the Balearics is 1.5%. In total, 11.5% in taxes on the purchase price.

VAT and ITP are mutually exclusive: a given purchase pays one or the other, never both. The key distinction is whether it is the property's first transfer (new build, sold by the developer) or a subsequent transfer (resale).

Are there reduced rates or ITP exemptions?

Yes. The Balearic Islands apply reduced rates of 4% and 2%, and even a 100% ITP exemption, for the purchase of a first primary residence by specific groups (young buyers, large or single-parent families, people with disabilities), subject to strict requirements on prior residence in the Balearics, income limits and maximum property value. In Menorca, the value threshold to access the reduced rates is €270,151.20.

These benefits are designed for residents purchasing their primary home, so they rarely apply to second-home buyers or investors. Each case should be verified with the Balearic tax agency (ATIB) or a tax adviser.

What other costs are there besides taxes?

On top of taxes, buyers should budget for formalisation fees and professional services:

• Notary: approximately €600 to €1,500, depending on the property price and the length of the deed. Fees are set by official tariff.
• Land Registry: approximately €400 to €650 for registering the property.
• Gestoría: €300 to €500 if there is a mortgage, as the bank requires an administrative agency to handle tax filing and registration.
• Independent lawyer: around 1% of the purchase price. Not mandatory, but strongly advisable, especially for foreign buyers.
• Valuation: €300 to €600 if the purchase is mortgage-financed.

When and how are the taxes paid?

ITP is self-assessed using form 600 before the ATIB within a maximum of 30 working days from the signing of the deed. Late payment incurs surcharges and interest. In practice, the gestoría or lawyer handling the transaction takes care of this filing.

For new builds, VAT is paid directly to the developer at the time of purchase, and stamp duty is also settled by self-assessment before the ATIB.

Worked example: what would you pay for a €500,000 home in Menorca?

Take a resale home in Menorca priced at €500,000:

• ITP: the first €400,000 is taxed at 8% (€32,000) and the remaining €100,000 at 9% (€9,000). Total ITP: €41,000 (effective average rate: 8.2%).
• Notary: ~€1,000
• Land Registry: ~€500
• Gestoría: ~€400

Approximate total without a lawyer: €42,900, or 8.6% of the price. Adding an independent lawyer (~1%), the total transaction cost comes to around €48,000, close to 9.6% of the purchase price.

Frequently asked questions

Who pays the ITP, the buyer or the seller?

The buyer always pays the ITP. The seller is liable for different taxes, such as the municipal capital gains tax and capital gains under income tax.

How long do I have to pay the ITP?

30 working days from the signing of the deed, using form 600 before the Balearic tax agency (ATIB).

Are ITP and VAT paid at the same time?

No, they are mutually exclusive. New builds pay VAT (10%) plus stamp duty (1.5%); resale homes pay only ITP (8-13% by brackets).

What value is the ITP calculated on?

On the higher of the cadastral reference value and the deeded price. It is worth checking the reference value before signing to avoid surprises.

Do foreigners pay more tax when buying in Menorca?

No. Purchase taxes are identical for national and foreign buyers. Reduced rates and exemptions, however, require prior residence in the Balearics, so in practice they rarely apply to non-residents.

Conclusion

Knowing the taxes and costs before buying allows you to calculate the real budget of the transaction and avoid surprises. As a quick 2026 reference: an extra 9-10% on a mid-priced resale home, 11.5% plus fees on a new build, and higher percentages in the high-value segment.
At Fincas Venalis, we help our clients estimate the total cost of their purchase in Menorca from the very first viewing — with no last-minute surprises.

More information: venalismenorca.com/en/