When buying property in Mallorca, American buyers should budget between 8% and 13% of the purchase price for taxes and associated costs. The primary tax is either the Transfer Tax (ITP) for resale homes or VAT (IVA) for brand-new constructions, with rates varying based on the property's value. The Two Main Tax Paths: New vs. Resale The first thing a US buyer needs to determine is whether the property is...