The ultimate guide to buying a holiday home in Ibiza
If you’re dreaming of sunshine days and warm nights, al fresco dining, the sound of cicadas in the olive groves and sinking your toes into the sand of some of the world’s most beautiful beaches, a second home on Ibiza could be exactly what you’re looking for. Whether you imagine a villa with sweeping views of the island’s stunning coastline or a Finca nestled deep in the hills of the Morna valley, on this idyllic Balearic island you’ll surely feel like paradise has been found. Continue reading for the ultimate guide to buying a holiday home in Ibiza
But the road to owning property in paradise doesn’t always run smooth, and it’s important to understand what to expect when you buy a home in Ibiza. Here are a few things to consider before starting the journey.
Step 1: Get your bearings
Ibiza is one of the smaller Balearic Islands, which means you have the advantage of easy access to the wide variety of rich culture, world-renowned restaurants and shimmering ports the island has to offer. However, you may find that one region suits your tastes better than another.
Would you choose the trendy South, where Ibiza Town’s charming Dalt Vita (Old Town) stands proud among its cosmopolitan shops, restaurants, art galleries and bars, and the beaches of Playa d’en Bossa, Es Cavallet, Sa Caleta and Cala Vadella line the coast all the way up to San Antonio?
Does the West side appeal to you? Here you have easy access to much of the nightlife that Ibiza is so well known for, but the magnificent West coast is also ideal for families. The beautiful beaches of Cala Salada, Cala Comte and Cala Bassa are located here, and, it’s also from this part of the island that you can catch the stunning Ibiza sunset, a cocktail in your hand and not a care in the world.
Perhaps the East is where you’ll find your scene – a haven for creatives, where the main town Santa Eulalia del Río offers great shops, restaurants and a vibrant life all year around, and you could while away your days perusing the quirky and colourful hippy markets in towns like Las Dallas and Punta Arabi.
Or would you prefer the tranquil North, where you’ll find a slower pace of life in a classic Iberinco finca close to the unspoiled nature of the island: hidden beaches, stunning rugged coastlines and hidden green valleys.
Whatever your idea of true escapism is, Ibiza has something for everyone – and perhaps the most exciting part of the process of buying here is deciding which vibe suits you best.
Step 2: Get your documentation in order
To be able to make an offer on a home on Ibiza you need to ensure you have the necessary documentation ready to go. Here is what you will need (1) An original personal ID card or passport; (2) An original NIE number (this is an all-purpose foreigner’s identification and tax number); (3) Spanish bank account details.
Step 3: Understand the procedure
It may take time to find your perfect property in Ibiza. What you see advertised on real estate websites may not be the reality when you turn up for the viewing… But with perseverance (and plenty of support from an agent you can trust), you will find the home of your dreams. Once you’ve found your perfect Ibiza idyll, what are the next steps?
I. Negotiation and Agreement
Once you’ve fallen in love with a property, done the necessary due diligence and decided it’s the one for you, you’ll typically enter into negotiations with the seller. Once an agreement is reached, both parties confirm the terms in writing, and the task of drawing up the official, finalised contract can commence.
II. Private Contract and Deposit Payment
When buying on Ibiza, in most cases the buyer and the seller will enter into a private contract that can be drawn up by their legal representatives, with the purpose of making the agreement between them legally binding and giving both parties peace of mind. There are various types of private agreements depending on the preferences of those involved, but regardless of the type of contract, this is generally the time when a deposit (usually 10% of the purchase price) would be paid by the buyer. For this, it is necessary to have a Spanish bank account, through which you will have applied for a mortgage of up to 70% of the value of the house, with a duration of between 20 and 30 years.
Additional details included in this private document include all the negotiated terms – the price, the deadline for signature before a notary, a description of the dwelling including furniture and appliances, and the expenses deriving from the transaction and who is responsible for them.
III. Sale Purchase Deed
The final signature of the deed of sale will take place before a notary of Ibiza in the presence of all parties, or their legal representation. This is when the payment in full of the agreed price (minus the already-paid deposit) is made. As a buyer, you have the right to choose your notary, and you also bear the costs derived from the formalisation of the title deed. At this time the rights of ownership are transferred to you.
Step 4: Understand the costs
When you buy on Ibiza you can add to the purchase price of the property the following:
– Property Conveyance Tax (8%-11%) – unless a new build in which case this is not applicable
– Value Added Tax (10%) and stamp duty (1.5%) – where the property is a new build
– Attorney/Consultancy fees (1%)
– Notary and Property Registry fees (0.1% – 0.5%)
– Banking expenses (these would vary)
– Rental License, if you plan to rent out your home (€600 for the application and then the cost is calculated per room thereafter, coming in at €17, 459.70 for 4 bedrooms) – remember to check whether or not your property is eligible for a rental license before you make an offer on it.
How does Lazazu smooth your way?
At Lazazu we understand this process can be daunting. Our mission is to make owning and enjoying a second home much easier and more accessible via an innovative co-ownership model. When you choose co-ownership with us, we commit to walking you through the entire process from start to finish and beyond.
You can trust us to select the best homes in the very best areas in Ibiza for you to choose from. When faced with countless homes on different websites it can be daunting to know when to start, but you can rest assured that we will have visited and quality checked the homes we promote so that when you fly to the island for a viewing, you will find what you expected.
After we’ve helped you find the perfect home and the qualified, like-minded co-owners to share it with, we will connect you with financing options and arrange your NIE number and other documentation and permits you need to own a home in Ibiza – and even then we won’t leave your side. We set up a dedicated company for the ownership of the home and oversee the legal process. Then we will refresh, equip and beautiful furnish your corner of paradise with the help of professional European interior designers, and manage the running of your home from there. If you choose to rent out the home (and a rental license has been granted to do so), we will oversee and manage this process as well – ensuring your little corner of paradise works hard for you when you’re not using it.
All you have to do is pop the champagne, pack your bags, and come and enjoy it.
Discover more about Lazazu:
How Lazazu co-ownership works | Frequently asked questions about shared holiday homes | The benefits of fractional ownership | Browse Lazazu’s selection of second homes | The difference between timeshare and co-ownership