The Balearic government is planning a new rise in taxes on luxury homes. The tax rate on paperwork involving the sale of homes of more than one million euros will rise to two percent added to the half percent rise in general taxes already announced. The tax rate on the sale of homes of more than one million will rise from 11.5 percent to 12 percent.
As a result of these increases the Balearics has become the most expensive place in Spain to buy a luxury home. Taxes on the purchase of cheaper homes will be reduced.
The real estate sector is expected to slam the move as they consider that the taxes paid by buyers and sellers are already too high.
The higher taxes and attempts being made to curb the sale of homes in the Balearics to non residents has put the purchase of property very much in the spotlight, especially for luxury homes.