In short
- Foreigners can buy property in Menorca. Nationals of EU countries are exempt from the defence-zone limits of Law 8/1975; UK buyers are not, so if the property lies in a declared zone they may need military authorisation, which the notary checks.
- The NIE is the Spanish foreigner ID number. The National Police assign it for a €9.84 fee and must resolve the application within five days of filing.
- Resale home from a private seller: ITP transfer tax on a sliding scale from 8% to 13%, with no graded AJD stamp duty on top. New build: 10% VAT plus AJD at 1.5%, or 2% on the whole value when it is €1,000,000 or more (not only on the excess).
- If the seller is a non-resident (an individual, or a company with no permanent establishment in Spain), the buyer withholds 3% of the price for the tax authority.
- If you live outside Spain and keep the home for your own use, you declare imputed income every year: 24% for UK residents, 19% for EU/EEA residents.
- Buying property no longer gives you residency: the property-investment residence route (golden visa) was abolished from 3 April 2025.
Can foreigners buy property in Menorca?
Yes. EU nationals face no nationality limit; UK buyers may need military authorisation if the property is in a declared defence zone. The one nationality-based limit we found in the official sources is Law 8/1975 on zones of interest for national defence. Under that law, the Council of Ministers can declare areas where foreigners cannot buy land or buildings without military authorisation (arts. 17 and 18), and foreigners may own no more than 15% of the land in a declared area (art. 16). Notaries and registrars ask for the authorisation (art. 20). Zones of national tourist interest are excepted (art. 18).
For UK buyers, the key point is the additional provision added by Law 31/1990: the limits do not apply to individuals who are nationals of an EU member state. That covers German and Dutch buyers. British buyers are not nationals of an EU member state, so the exemption does not cover them.
We have not checked which zones, if any, are declared in Menorca. Before you pay a deposit, ask the notary whether the property is in a declared zone and whether you need the authorisation.
The NIE: what it is and where you get it
The NIE (número de identidad de extranjero) is the identification number Spain gives to foreigners. The National Police assign it to foreigners with economic, professional or social interests in Spain.
- Documents: form EX15 and proof of payment of fee 790, code 012. The government procedures platform adds that the form is filed in duplicate with the original passport and a copy.
- Fee: €9.84 at the time of checking.
- Where: in person at a Foreigners' Office or a police station. If you are not in Spain, through a Spanish consulate.
- Time: the police must resolve within five days of the application entering the register. If they do not, the silence counts as a refusal.
The police page does not say which reason is enough for buying a home. Without an NIE the deed cannot be registered at the Spanish Property Registry (Ley Hipotecaria art. 254.2; RD 1065/2007 art. 20.1). Ask the notary which documents they need from you before the signing date.
Step by step: from choosing a home to registering it
The order below is the usual sequence for a purchase in Spain. The table gives the source for each step. Only the NIE has an official time limit; for the other steps we give no timings.
| Step | What happens | Who is involved | Source |
|---|---|---|---|
| 1. Choose the property and check its papers | Request the nota simple and check charges and the energy certificate (see legal checks below). | Buyer | Notariado |
| 2. NIE | Apply with form EX15 and fee 790-012. Resolution within five days of entering the register. | National Police | Policía Nacional |
| 3. Deposit (arras) | If the buyer withdraws, the buyer loses the deposit; if the seller withdraws, the seller returns it doubled. | Buyer and seller | Código Civil, art. 1454 |
| 4. Deed (escritura pública) | Signed before the notary, who explains tax obligations and costs. The deed records how the price is paid and who the beneficial owner is. | Buyer, seller, notary | Notariado |
| 5. Taxes | ITP, or AJD with VAT on a new build, filed and paid with the Balearic tax agency (ATIB) within one month of signing (form 600). | Buyer | ATIB |
| 6. Land Registry | The deed is registered in the Registro de la Propiedad. | Registry | Notariado |
Taxes and costs when you buy
What you pay depends on who sells. On a resale home bought from a private seller, you pay ITP (Impuesto de Transmisiones Patrimoniales) and not the graded AJD, because the law applies that stamp duty only to deeds that are not subject to transfer tax (TRLITP, art. 31.2). On a new build you pay VAT plus AJD (Actos Jurídicos Documentados).
The tax base is the higher of the price and the reference value set by the Catastro (TRLITP, art. 10.2). The Catastro has published reference values for 2026 and 2027.
ITP: the Balearic scale
In the Balearic Islands, ITP on a home follows a sliding scale. Each rate applies only to the slice of the price that falls inside its band. The scale applies to purchases taxed from 1 January 2023 (ATIB; Decreto Legislativo 1/2014). A reduced rate exists for a main home under conditions (Decreto Legislativo 1/2014, art. 10.c); we give no figures for it, and the table below is the general scale.
| Part of the price | Rate |
|---|---|
| Up to €400,000 | 8% |
| €400,000 to €600,000 | 9% |
| €600,000 to €1,000,000 | 10% |
| €1,000,000 to €2,000,000 | 12% |
| Over €2,000,000 | 13% |
ITP examples
These figures are our own calculation from the scale above. They assume a resale home from a private seller, the general rates and a taxable base equal to the price.
| Price | ITP | Average rate |
|---|---|---|
| €200,000 | €16,000 | 8.00% |
| €300,000 | €24,000 | 8.00% |
| €500,000 | €41,000 | 8.20% |
| €800,000 | €70,000 | 8.75% |
| €1,500,000 | €150,000 | 10.00% |
| €2,500,000 | €275,000 | 11.00% |
For a €500,000 home: 8% of the first €400,000 is €32,000, plus 9% of the next €100,000 is €9,000, which makes €41,000.
New build: 10% VAT plus AJD
A new home bought from a developer carries 10% VAT instead of ITP (Ley 37/1992, art. 91). On top of VAT you pay AJD at 1.5%, or 2% on the whole value when it is €1,000,000 or more, not only on the excess (ATIB; Decreto Legislativo 1/2014, arts. 15 and 17 bis).
Notary and registry fees
We give no figures for notary and registry fees because we have not read the official fee schedules. The notary explains the costs and obligations of the deed, and gives impartial advice at no charge (Notariado). Who pays what is shown below.
| Item | Who pays | Source |
|---|---|---|
| ITP, or VAT plus AJD on a new build | Buyer | ATIB; TRLITP, art. 8.a |
| Municipal capital-gains tax (plusvalía) | Seller; the buyer is the substitute taxpayer when the seller is a non-resident individual | TRLRHL, art. 106 |
| 3% withholding | Buyer withholds it from the price when the seller is a non-resident | TRLIRNR, art. 25.2 |
| Notary and registry fees | Split by agreement; the notary explains it | Notariado |
If you are comparing homes before you decide, see our villas for sale in Menorca.
Legal checks before you sign
- Nota simple: an extract from the Land Registry. Check the owner and any charges on the property before paying a deposit (Notariado).
- Energy certificate: when an existing building is sold, a copy of the registered energy efficiency certificate is attached to the contract (Real Decreto 390/2021).
- Catastro reference: check the cadastral data, since the reference value can set your tax base (see above).
- Defence zone: ask the notary whether Law 8/1975 applies to the property if you are not an EU national.
- Seller's residence: if the seller is a non-resident, the 3% withholding and plusvalía rules in the table above apply.
The official sources we read set no obligation to hire a lawyer. The notary informs both sides impartially and at no charge.
Paying for the property
The deed records how the price was paid and who the beneficial owner is (Notariado). Two rules affect the payment itself.
- Cash limit: cash payments of €1,000 or more are banned when one party is a business or professional. The limit is €10,000 if the payer is an individual who can show they have no tax residence in Spain and is not acting as a business or professional (Ley 7/2012, art. 7).
- 3% withholding: when the seller is a non-resident (an individual, or a company with no permanent establishment in Spain), you keep 3% of the price for the tax authority (TRLIRNR, art. 25.2). Ask the notary how it is filed.
Mortgages for non-residents
We found no official source on mortgage terms for non-residents, so we give no loan-to-value or rate figures. What we can source is the split of costs: Spanish mortgage law (Ley 5/2019) regulates who pays the formalisation costs of a mortgage, and the Bank of Spain explains the split.
What you pay every year as a non-resident owner
Owners who live outside Spain and keep the home for their own use declare imputed income on modelo 210 (Non-Resident Income Tax), taxed at 24% for UK residents and 19% for EU/EEA residents. The Tax Agency sets the rule:
- The income is 1.1% or 2% of the cadastral value, with no deduction for expenses and in proportion to the days you own the home. Which percentage applies depends on when the municipality last revised its cadastral values.
- The tax rate is 19% for residents of EU countries, Iceland, Norway and Liechtenstein, and 24% for residents of other countries, which includes the UK.
Illustration, not a real property: a cadastral value of €100,000 gives a taxable base of €1,100 at 1.1%. At 24% the tax is €264; at 19% it is €209. Our own calculation.
Deadlines: imputed income for 2025 is declared between 1 January and 31 December 2026. From income of 2026 onwards, the window runs from 1 April to 31 December of the following year (Tax Agency note on Orden HAC/623/2026).
The annual property tax (IBI) is separate. We give no figure because it depends on the municipality.
Does buying a house give you residency?
No. The property-investment residence route (golden visa) was abolished from 3 April 2025: article 63 of Ley 14/2013 has had no content since that date, under the final provision 21.1 of Organic Law 1/2025. Some agency websites still present it as an option. For other residence routes, ask the Spanish immigration authorities or your nearest consulate; this guide does not cover them.
See our villas for sale
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Frequently asked questions
Can foreigners buy property in Menorca?
Yes. EU nationals face no limit by nationality. Buyers from outside the EU, such as UK buyers, may need military authorisation under Law 8/1975 if the property is in a declared defence zone, and the notary checks this. Ask the notary whether the property is in such a zone.
Do I need an NIE to buy a house in Menorca?
The National Police assign the NIE to foreigners with economic, professional or social interests in Spain. Without an NIE the deed cannot be registered at the Spanish Property Registry (Ley Hipotecaria art. 254.2; RD 1065/2007 art. 20.1, which makes the NIE a foreigner's tax ID). Ask the notary which other documents they need from you.
Can I get an NIE from abroad?
Yes. If you are not in Spain, you apply through a Spanish consulate. In Spain, you apply in person at a Foreigners' Office or a police station.
How much tax do I pay when I buy?
On a resale home from a private seller in the Balearic Islands you pay ITP on a sliding scale: 8% up to €400,000, 9% up to €600,000, 10% up to €1,000,000, 12% up to €2,000,000 and 13% above, each rate on its own slice of the price. You do not pay graded AJD on top. On a new build you pay 10% VAT plus AJD at 1.5%, or 2% on the whole value when it is €1,000,000 or more (not only on the excess).
Do I need a lawyer?
The official sources we read set no obligation to hire one. The notary informs both sides impartially and at no charge.
How much is the deposit?
It is whatever the parties agree; we found no official percentage. With a deposit (arras), a buyer who withdraws loses it and a seller who withdraws returns it doubled (Código Civil, art. 1454).
Does buying a house give me residency?
No. The property-investment residence route (golden visa) was abolished from 3 April 2025. For other routes, ask the Spanish immigration authorities.
What do UK buyers pay every year?
If you live outside Spain and keep the home for your own use, you declare imputed income on modelo 210 at 24% of 1.1% or 2% of the cadastral value. The annual property tax (IBI) is separate and depends on the municipality.
Official sources
Figures were checked against these sources on 28 October 2026.
- Policía Nacional: NIE assignment and fees
- Plataforma ONE: NIE application
- ATIB: ITP and AJD
- BOE: Decreto Legislativo 1/2014 · TRLITP · Ley 37/1992 (VAT) · Ley 8/1975 · TRLIRNR · TRLRHL · Ley 14/2013 · Ley 7/2012 · Código Civil · Real Decreto 390/2021
- Agencia Tributaria: modelo 210 · deadlines note
- Notariado: buying a home
- Catastro: reference values
- Banco de España: formalisation costs
This guide gives general information and is not legal or tax advice. Rules and fees change; check the linked source before you act.