Did you know that a Canadian citizen can freely buy an attic apartment in the centre of Ibiza, but is not allowed to buy an inland property, just a few miles from town, unless s/he receives a specific authorization from the Ministry of Defense?

The wealth Tax was abolished in Spain in 2008, but a few years ago it was brought back again at national level, and thus, also in Ibiza. This tax is applied both to the property of residents and of non-residents when the value of their belongings in Spain is over and above of 700,000 €.

There has been much talk in the press recently about the latest rulings stating that the banks should have to pay back to their customers at least part of the additional costs of setting up a mortgage. Until recently, there was a clause in the general conditions of mortgage loans that determined that the client, as the borrower, had to assume all additional costs. These include, primarily, the costs for the notary, the land registry and the accountancy, as well as the “impuesto sobre actos jurídicos documentados”(IAJD), a tax paid by the buyer at the time of closing.