Ibiza - Property Market & Overview​

Ibiza, one of Spain’s Balearic Islands in the Mediterranean, is much more than its global reputation as a party hotspot. Situated off the eastern coast of Spain, the island has diversified its appeal over time. While it continues to be a magnet for an international blend of beat-chasers and celebrities, Ibiza also offers serene beaches and breathtaking rural landscapes. The surge in the island’s global popularity has spurred a robust expansion in the Ibiza property market, with high demand and limited island supply underpinning its strength in recent years. This development, coupled with the proliferation of high-end resorts, such as Six Senses, has further solidified the island’s standing as a coveted destination. Beyond the vibrant nightlife, Ibiza captivates visitors with its pristine coastlines and a rich local culture that traces its origins back to ancient times.  The island’s diversity has grown thanks to better flight connections, including regular flights to major European cities and beyond. As more visitors come throughout the year, the activities available are becoming consistently accessible rather than just seasonal.


Ibiza enjoys a Mediterranean climate, characterized by long, hot summers and mild, wet winters. The average high temperature in summer ranges from 28°C to 30°C, making it ideal for outdoor activities and beach trips. Winter temperatures are moderate, averaging around 14°C to 17°C. This climate contributes to the island’s appeal, allowing visitors to experience its outdoor attractions virtually year-round. Rainfall is relatively low but slightly more common in the winter months from October to January. The island enjoys abundant sunshine, averaging around 10 to 11 hours of daylight in the summer and 5 to 6 hours in the winter.


Ibiza has a population of approximately 150,000 people, according to the most recent data. The island is a melting pot, with a significant number of residents coming from other parts of Europe, primarily the United Kingdom, Germany, and Italy, among others. Spanish remains the primary language, but it’s not uncommon to hear English, German, and other languages. The island also has a small but significant community of long-term expatriates who have chosen to make Ibiza their home, contributing to a cosmopolitan atmosphere.

Seasonal Variations

Ibiza is often synonymous with its vibrant summer season, but what lies beneath the island’s fame during the rest of the year? Alongside the influx of international families choosing Ibiza as their year-round home during the pandemic, an increasing number of digital nomads are drawn to its favorable climate and impressive flight connectivity. This evolving demographic has expanded the traditional ‘season’, leading to year-round local cultural events, from wellness workshops to annual sports and fitness celebrations. Beyond summer, visitors continue to be charmed by Ibiza’s pristine countryside, crystalline waters, and exceptional cuisine. Few places offer the year-round luxury of morning scuba dives, afternoon mountain biking, and evening relaxation with drinks in the heart of town.

Ibiza Property – Legal considerations

Legal Requirements To Buy Property in Ibiza: As is the case with anywhere in Spain, the foreign investor must have a NIE number (Número de Identificación de Extranjero) to buy property in Ibiza. This identifies them as a foreigner in Spain which is required in order to complete the legal documentation for the purchase, and for assignments of property taxes (transfer tax and stamp duty etc.). If the foreigner doesn’t intend to live in Spain, i.e. buying as a holiday home or for rental, they can obtain a temporary NIE.

Getting Residency

Golden Visa: As long as the value of such property is over 500,000€, the foreigner will be able to obtain a residence permit known as Golden Visa, which allows him to reside and work in the country, as well as to bring his family with him. Without this, they can only stay 90 days at a time out of every 180 days, or a maximum of around 180 days a year. 

Please note, on of 9th April 2024, the Spanish government announced the decision to wind down the Golden Visa scheme. So far, the government has only announced its intention to close the scheme, but the law still needs to be amended, agreed upon, and ratified, with a timeframe established. The golden visa route remains open for now, but buying property, submitting an application, and getting it approved is a lengthy process

Non-Lucrative Visa:  This scheme has been very popular with UK nationals since Brexit. This visa allows residence in Spain without working, provided applicants have sufficient financial means to support themselves. Proof of income or substantial savings is required. Additionally, applicants need medical insurance from a Spanish insurer, medical check records, and clean criminal records.

Property Acquisition Costs:  The total costs of buying a property in Ibiza, including these taxes and fees, typically range between 8% to 13% of the purchase price.

Property Conveyance Tax: (ITP – Impuesto de Transmisiones Patrimoniales ): This is only applicable to applied to the purchase of resale / used properties. Rates vary according to declared sales value. For Ibiza properties valued between 1M to 2M EUR the rate is 12%. Over 2M EUR the rate is 13%.

VAT: This tax is applicable for newly built properties. The VAT rate for new homes is 10%, plus an additional 1.2% stamp duty. This brings the total tax burden to 11.2%.

Lawyer and Notary Fees: Lawyer fees are usually around 1% of the purchase price.

Tourist Licence for Renting Short-Term:
To legally rent out a property for short-term stays (1 month or less) to tourists in Ibiza, you need a Tourist Rental License, known as an ETV (Estancia Turística en Viviendas). This license is required by the Law of Urban Leases (LAU) and ensures that the property meets the safety and quality standards required by the authorities.
Here are some key points to consider when obtaining a tourist rental license in Ibiza:
1. Property Requirements:
• The property must be at least five years old and have been used as a private residence during that time.
• It should possess an active energy certificate, meeting specific energy efficiency requirements: F rating for buildings constructed before December 31, 2007, and D rating for buildings constructed after January 1, 2008.
• The property must be free from any previous sanctions for serious infringements of the holiday rental licensing laws.
• Only single-family dwellings or attached properties are typically eligible for the license, and the property must be located in a designated tourist area.
Obtaining the rental licence involves registering with the town hall, submitting supporting documents, having a technical inspection and then waiting for approval.

Ibiza Property Market - 2024

Spanish Property Market: Setting the Stage

The Spanish property market has shown remarkable resilience and adaptability over recent years Read Full Version, navigating through various economic and geopolitical challenges. In 2022, despite the ongoing Ukraine conflict and rising inflation, the market saw a boom with property sales and prices reaching levels not seen since 2007. However, towards the end of the year, signs of cooling emerged with a slight decline in sales and price growth.

In 2023, the market experienced a soft landing with 550,215 transactions in the first 11 months, a 9% decrease from 2022 but still 17% higher than in 2019, indicating a return to pre-pandemic normality. Foreign buyers continued to play a crucial role, with a significant presence in regions like Malaga, Alicante, and the Balearics. Although foreign sales dipped slightly compared to 2022, they were substantially higher than pre-pandemic levels.

House prices in 2023 increased by 4.5% year-on-year, driven by strong demand and a shortage of homes in key areas. This price stability contrasts with declines in many other EU countries, highlighting Spain’s market strength. Despite the moderation in economic growth and rising interest rates, the strong labor market and accumulated household savings helped sustain demand.

The market in 2024 is stabilising amid ongoing challenges. Sales may see slight contractions due to high interest rates and regulatory uncertainties, but the strong performance of the labor market and continued foreign interest are supporting market activity. Long-term prospects depend on addressing issues like labor shortages in construction, regulatory clarity, and increasing the housing supply to meet demand.

Foreign Buyers in the Balearics

The 2023 report from the College of Property Registrars, source Majorca Daily Bulletin, reveals that 31% of homes sold in the Balearics were purchased by foreigners. Despite a decline in the total number of sales last year, the proportion of foreign buyers remained consistent with the ten-year average of approximately 30%. The economic challenges faced by the Netherlands and Germany, such as increased living expenses, soaring construction costs, and higher mortgage rates, have led to a decrease in the proportion of property buyers from these countries. Meanwhile, buyers from France, the United States, and the United Kingdom continue to be actively involved in the market. 

Ibiza Property Market 2024 & International Buyers

Part of the Balearics, Ibiza and its neighbouring islands have consistently ranked some of the Mediterranean’s premium real estate investment areas. Within the Balearic property market, Ibiza holds roughly an 11% share, paralleled by Menorca’s 11%, while Mallorca dominates with around 78%.

The Ibiza property market continues to captivate international buyers, maintaining strong appeal and suggesting a rise in demand. The island’s unique market, constrained by strict planning laws limiting availability, is expected to drive prices up, making it a promising area for investment. Ibiza’s strategic location, easily accessible within two hours from major European cities, enhances its desirability for property ownership.

Over the past decade, the Balearic Islands’ property market has experienced steady growth, with notable spikes in 2017 and 2022. Despite challenges within the broader real estate sector, Ibiza’s market has shown resilience, with consistent price increases for a diverse range of properties, from apartments to luxurious villas. Experts predict this trend to continue, providing a buffer against economic shifts. Property owners in Ibiza are holding onto their assets, viewing real estate as a more lucrative investment than traditional banking. The increasing demand for year-round rentals adds to the island’s appeal, thanks to its pleasant climate, excellent connectivity, and modern infrastructure.

The recent political shift with the Partido Popular’s victory in May 2023 has put Ibiza back in the spotlight for foreign property buyers, as restrictions on purchasing second homes are likely to be lifted. This move is anticipated to enhance the attractiveness of older properties by simplifying renovation processes. The luxury segment of the Ibiza property market, particularly in the over €4 million bracket, is especially active, showing resilience where lower-priced markets may falter due to financial dependencies. The vitality of this segment is evident with the IGY Ibiza Marina accommodating super-yachts, signalling the robustness of the island’s upscale market.

With a focus on renovations to improve the older property stock, the incoming government aims to bolster the market, potentially yielding higher returns for investors. High construction costs and labor shortages have increased the value of turnkey homes. The investment landscape in Ibiza is gaining momentum, with the IGY Ibiza Marina hosting luxury vessels and high-end hotels like Six Senses reaching full capacity, indicating the durability of the top-tier tourist market despite economic pressures. The island’s connectivity is also improving, with new direct flights to and from various destinations, including New York from Palma de Mallorca.

Prime buyers are gravitating towards Ibiza’s southern coast, with areas like Es Cubells and Porroig being particularly sought after. The island’s central rural area around Santa Gertrudis, known for its international school, continues to attract sustained interest. In the north, the opening of Six Senses has drawn attention to previously less considered areas, now further accessible by a new direct road to Ibiza Town. An analysis by Engel & Völkers in 2022 reaffirmed this trend, recording an average price growth of nearly 9% for villas and fincas in Ibiza. Notably, the scenic northern region showcased the priciest offers, averaging over 9,000 euros per square meter.

Sales in the Ibiza real estate market for 2024 are anticipated to stabilise after the slight slow-down of 2023, with an observable increase in the number of properties available on the market. Although demand has decreased, prices have continued to rise following established trends from previous years. As a result, some slight sales dips exist, but the market remains strong, healthy, and adaptable.

The island’s real estate market has demonstrated its ability to bounce back after crises, distinguishing itself from mainland Spain and other real estate markets. Ibiza’s multicultural environment and high demand for luxury properties and holiday homes further enhance its attractiveness for both sellers and buyers in 2024.

In Ibiza, the demand for residential real estate remains strong, particularly in the luxury sector, which is less sensitive to economic fluctuations. The luxury property market often sees more buyers than sellers due to the limited availability of high-end villas and exclusive properties, especially those with desirable features like sea views or proximity to popular areas. Strict zoning laws and a desire to preserve the island’s natural beauty limit the supply of new housing, particularly in the luxury segment. When new developments do occur, they are quickly snapped up by eager buyers.

Popular properties in Ibiza include luxury villas with privacy, sea views, and high-end amenities, as well as traditional fincas that offer a more authentic Ibizan experience. Additionally, there is significant interest in properties suitable for short-term rentals, such as apartments in urban areas or homes near popular beaches, due to their rental income potential.

Luxury properties in Ibiza are often purchased as investments, given their potential for value appreciation. There is also a growing interest in sustainable living and eco-friendly homes, reflecting a niche market within Ibiza’s real estate sector. These properties, featuring green amenities like solar panels and sustainable building materials, are becoming increasingly desirable to environmentally conscious buyers.

Foreign investment plays a significant role in Ibiza’s real estate market, with affluent international buyers often seeking luxury villas or exclusive properties. This demand influences property prices and the types of properties developed, skewing the market towards high-end offerings.

Ibiza’s property market in 2024 remains robust and appealing, driven by high demand, limited supply, and a buoyant rental scene. The market’s resilience and unique offerings make Ibiza a highly sought-after destination for real estate investments.

Ibiza Villas for Sale

Main Towns

Ibiza Town (Eivissa): The capital and largest city on the island, Ibiza Town is the hub of all activity. Its historic center, Dalt Vila, is a UNESCO World Heritage site, offering a glimpse into the island’s past. The town is home to some of Ibiza’s most renowned nightclubs, luxurious marinas, and a wide array of shopping options.

San Antonio (Sant Antoni de Portmany): Known for its stunning sunsets and bustling nightlife, San Antonio is the place to go for some of the island’s most famous beach bars and clubs. The town has a more laid-back vibe during the day, offering a range of water activities.

Santa Eulalia (Santa Eulària des Riu): This town is a quieter, family-friendly alternative to Ibiza Town and San Antonio. With a lovely marina, it offers a laid-back atmosphere and is home to some excellent restaurants and cafes…Read More

San José (Sant Josep de sa Talaia): Located in the southwestern part of the island, this town is the gateway to some of Ibiza’s most beautiful beaches. It’s a quieter, more residential area that offers a break from the party scene…Read More

San Juan (Sant Joan de Labritja): Situated in the north, San Juan is the least developed and most tranquil of the main towns. It’s the ideal place for those looking to experience the island’s natural beauty…Read More

Notable Beaches

Playa d’en Bossa: Located close to Ibiza Town, this is the longest beach on the island. It’s known for its lively atmosphere and is home to some of the most famous clubs and beach bars.

Cala Jondal: This is a serene and picturesque bay on the southern coast of Ibiza, is renowned for its pristine beauty and upscale ambiance. This tranquil spot, embraced by pine-clad hills, is a favourite among discerning travellers and residents alike. The beach, with its mix of pebbles and sand, stretches along crystal-clear waters, offering a peaceful retreat from the more bustling parts of Ibiza…Read More

Caló d’en Real: Caló d’en Real on the west coast of Ibiza stands as a testament to the island’s understated elegance and charm. This exclusive area is notable for its architecturally unique villas that blend seamlessly with the surrounding natural landscape. Our villas in Caló d’en Real are designed to offer comfort, privacy, and the best of modern amenities while allowing residents to immerse themselves in the tranquil beauty of Ibiza…Read More

Cala d’Hort: This beach offers stunning views of the mystical island of Es Vedrà and is an excellent spot for snorkeling and diving.

Las Salinas: Named after the nearby salt flats, this beach is famous for its fine, white sand and clear waters. It’s a popular choice for both families and younger visitors.

Cala Conta: Cala Conta, or Cala Comte as it is known locally, is a place where the natural beauty of Ibiza is on full display. This area is famous for its spectacular beaches, with clear turquoise waters and fine, golden sand. It’s a picturesque coastal destination that offers both the vibrancy of beach life and the tranquility of an island escape…Read More

Benirrás: This beach is famous for its Sunday evening drum circles, which offer a different, more bohemian side of Ibiza.

Cala Bonita: Tucked into Ibiza’s scenic coastal landscape, Cala Bonita is a gem for homeowners who desire a touch of the island’s quiet charm. This hidden cove, surrounded by the clear blue Mediterranean Sea, offers a peaceful retreat from the dynamic nightlife of Ibiza…Read More

Cala Olivera: Set along the picturesque coastline of Ibiza’s Santa Eulalia municipality lies Cala Olivera, a secluded cove that exudes an aura of tranquility and understated elegance. This hidden gem, tucked away from the bustling tourist hotspots, offers a sanctuary of serenity amidst the vibrant allure of Ibiza’s party island reputation…Read More

Notable Villages

San Rafael: Set in the heart of Ibiza, just off the road which connecting San Antonio to Ibiza Town, lies the charming village of San Rafael…Read More

San Lorenzo: In the heart of Ibiza, San Lorenzo (Sant Llorenç de Balafia) is a village that captures the serene spirit of the island. Known for its agricultural heritage and tranquil countryside, this locale is becoming increasingly recognized for its exclusive residential offerings. The area is defined by its authenticity and is a choice destination for those seeking a villa in Ibiza that promises both privacy and a connection to local culture…Read More

San Carlos: or Sant Carles de Peralta, is a delightful village located in the north-eastern part of Ibiza. North Santa Eulalia and known for its rich bohemian heritage and charming rural atmosphere, San Carlos serves as a crossroad between the island’s agrarian past and its contemporary allure. The village, while small, is steeped in history and culture, with traditional white houses, a beautiful church, and a relaxed vibe that is infectious…Read More

San Mateo: or Sant Mateu d’Albarca, is a quaint village situated in the northern part of Ibiza, surrounded by fertile valleys and a patchwork of vineyards and almond trees. This region, with its unspoiled landscapes and traditional Ibizan architecture, offers a taste of the island’s rural heartland. San Mateo’s charm lies in its simplicity and the unhurried pace of life, providing a stark contrast to the more bustling tourist hotspots…Read More

Ibiza Properties for Sale

Ibiza property market