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Buying a property in Ibiza: a complete guide

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property investment Ibiza

Yes, the analysis of Ibiza's property market is included in our pack

Considering buying a nice property in Ibiza? You're not alone!

Many people are captivated by Ibiza's party scene and dream of owning a luxurious villa or a stylish apartment with stunning sea views there.

Is it a wise investment, though? Are property prices increasing in Ibiza? How much does it cost? Should you consider investing in Ibiza Town or San Antonio? And the taxes? Where can you get a rental yield above 7%?

We've got it all sorted. No worries.

The Investropa team has extensively researched this market. Actually, we've put all our findings together in a pack. Get it now.

In this article, we're happy to share useful information with you.

How's the real estate market in Ibiza?

Is the property market getting better or worse? People have different views. We like to be unique and analyze the latest data and stats to make accurate conclusions.

Property types

In Ibiza, you can find a variety of properties for sale, catering to different preferences and budgets.

The types of properties available include stunning beachfront villas with breathtaking views of the Mediterranean Sea, charming rural fincas nestled in the picturesque countryside, modern and luxurious apartments in vibrant towns and cities, and quaint townhouses with historical charm.

Whether you seek a peaceful retreat, a lively urban setting, or a mix of both, Ibiza offers a diverse selection of properties for sale to suit various tastes and lifestyles.

Buying vs Renting

(In case you want it for yourself, not for rental purposes)

Whether you've already made Ibiza your home or are contemplating it for the future, you might be wondering about the advantages of buying a property versus renting in

Usually, buying is better than renting in Ibiza due to the potential for long-term capital appreciation, as well as the potential to generate rental income.

On the other hand, renting might be the better fit if you value flexibility.

Housing prices in Ibiza

On average, according to the last data from Ministerio de Fomento, purchasing a property in Ibiza would cost you around $8,500 per square meter.

Naturally, prices are quite spread out. A villa in Ibiza might have a different price per square meter than an apartment in Ibiza Town. We actually give you a more detailed breakdown in our pack for buying property in Ibiza and in Spain.

To give you a better idea, it is close to the prices you can find in a city like Brisbane in Australia.

Moreover, housing prices in Ibiza are higher (31%) than in Palma de Mallorca.

The most expensive neighbourhoods in Ibiza are probably Talamanca, Marina Botafoch, and Jesus, while the cheapest areas are likely Sant Carles de Peralta and San Carlos.

Ibiza Property Price per Square Meter


First and foremost, we have to acknowledge that Spain offers, today, a lot of stability to investors. The last Fragile State Index that has been reported for this place is 44.4.

Don't overlook this while weighing the pros and cons of buying a property in Ibiza.

Also, according to the International Monetary Fund (IMF), Spain's economy is expected to soar by 8.4% in the coming 5 years, resulting in an average GDP growth rate of 1.7%.

If you want to invest in real estate in Ibiza it's a good thing because, usually, when the economy grows, people make more money, and this encourages them to invest in real estate, which drives up the demand and prices for properties.

Also, in Spain, the average GDP per capita has changed by -1.1% over the last 5 years. It's a bit concerning.

Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Spain right now.

Buying property in Ibiza

It can be difficult to buy property in Ibiza due to the lack of reliable and up-to-date information available. That's why we have created the pack to buy property in Ibiza and in Spain.

Buying process

Inside our pack, we've outlined the complete buying process, including a detailed breakdown of prices and yields per area, tips for negotiating the price, and information about mortgage options.

Here, we're presenting you with a more straightforward version.

This is the step-by-step process to purchase a property in Ibiza:

  1. Determine your budget and property requirements.
  2. Engage a local real estate agent for guidance.
  3. Research properties and visit potential options.
  4. Make an offer and negotiate the price.
  5. Hire a Spanish solicitor to conduct legal checks.
  6. Sign a preliminary contract and pay a deposit.
  7. Apply for a Spanish NIE (Foreigner's Identification Number).
  8. Arrange financing if needed.
  9. Complete the property sale at the notary office.
  10. Pay all taxes and fees associated with the purchase.
  11. Register the property in your name.
  12. Celebrate becoming a property owner in Ibiza!

Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Spain.

Make a profitable investment in Ibiza

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buying property in Ibiza

Where to find a property

Discover your ideal property in Ibiza through these websites:

  • Idealista - A real estate platform in Spain that provides properties for sale and rent, including holiday homes, along with mortgage services and property-related resources.
  • Fotocasa - A property portal offering homes for sale and rent in various Spanish cities, accompanied by mortgage and insurance services.
  • Habitaclia - A real estate platform with properties for sale, rent, and new builds across different regions of Spain.
  • Pisos - A real estate portal in Spain that features properties for sale and rent, including houses, flats, and commercial spaces.
  • YaEncontre - A real estate portal offering a wide variety of properties for sale and rent across different Spanish regions.

Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Spain.

What properties?

As mentioned before, the average price per sqm in Ibiza is $8,500. A 1-bedroom property, measuring 60 square meters, would cost approximately $510,000, while a 2-bedroom property, measuring 85 square meters, would cost approximately $723,000.

However, as you can guess, property prices will differ based on the attributes of the property and its specific location.

Anticipate higher property prices in the premium areas of Ibiza. A house in Ibiza Town could cost you around $1,610,000, while a property in Santa Eulalia might be priced at $900,000.

Of course, certain regions are more affordable. You may find a house in San Antonio for $650,000, or a house in Cala Tarida priced only at $540,000.

We give a more detailed pricing list in our full pack for buying property in Spain.

Common mistakes

Here are the main pitfalls specific to buying a property in Ibiza, Spain:

  • Tourist rental restrictions: Ibiza has strict regulations on tourist rentals. Ensure the property can legally be used for short-term rentals to avoid penalties.
  • Ecological protection zones: Some areas are protected due to their environmental significance, limiting construction and development possibilities.
  • "Rustic" property challenges: Rustic properties may have limitations on renovation and expansion, impacting your plans for the property.
  • Lack of updated property registry: Ensure the property is properly registered to avoid potential ownership disputes and legal complexities.
  • Limited water supply: Some areas in Ibiza may have water scarcity issues, affecting your property's water availability and potential usage.
  • Cultural heritage restrictions: Certain properties may be subject to cultural heritage regulations, limiting modifications to protect historical significance.
  • Tourist season dependency: If you plan to rent out the property, be aware that income may fluctuate significantly based on the seasonal nature of tourism.
  • High demand and prices: The allure of Ibiza can lead to inflated property prices and intense competition, making it challenging to find affordable options.

We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.

real estate Spain

Everything you need to know is included in our Spain Property Pack

Living in Ibiza

Living in Ibiza is a dream come true, with its stunning beaches, vibrant nightlife, and laid back Mediterranean lifestyle.

Cost of living

The cost of living in Ibiza is generally quite expensive, as it is a popular tourist destination. Prices for basic goods such as food, utilities, and rent tend to be higher than other parts of Spain.

Here are some examples to better understand the cost of living in Ibiza:

  • A "Hierbas Ibicencas" (local herbal liqueur) at a beachside bar: $5.
  • Rent for a one-bedroom apartment in the trendy Marina Botafoch area: $2,000 per month.
  • "Bullit de Peix" (traditional Ibizan fish stew) meal in Es Canar: $25.
  • "Café caleta" (Ibizan coffee with brandy and spices) at a local café: $4.
  • Groceries from the "Mercat de Vila" in Ibiza Town: $50 per week for one person.
  • Entrance to a famous Ibiza club: $50-$100.
  • Monthly membership at a beachfront fitness club: $80-$100.
  • A bottle of "Ibiza Beer Company" craft beer at a local shop: $4.


We want to show information in a way that is easy to understand. So, we made a table that gives an overview of the different neighborhoods in Ibiza. For yields, prices and rents, check our property pack.

Neighborhood Description Strengths Weaknesses

Ibiza Town

Ibiza Town, the island's capital, is a vibrant and bustling area known for its historic Old Town, lively nightlife, and picturesque harbor.

Rich history, diverse entertainment options, beautiful marina.

Can be crowded with tourists, higher cost of living.

Playa d'en Bossa

Playa d'en Bossa is a popular resort area with a long sandy beach, numerous beach clubs, and a lively party scene.

Beachfront location, vibrant nightlife, many entertainment options.

Can be loud and crowded, less tranquil compared to other areas.

Sant Antoni de Portmany

Sant Antoni de Portmany, or San Antonio, is known for its stunning sunsets, relaxed atmosphere, and a wide selection of bars and restaurants.

Beautiful sunsets, laid-back vibe, ample dining choices.

Gets crowded during peak season, limited cultural attractions.

Santa Eulalia

Santa Eulalia is a charming coastal town with a stylish marina, tranquil beaches, and a sophisticated dining scene.

Upscale dining options, peaceful ambiance, scenic waterfront.

Not as lively as Ibiza Town or Playa d'en Bossa, limited public transportation.


Talamanca is a laid-back neighborhood close to Ibiza Town, featuring a crescent-shaped beach and a selection of waterfront restaurants.

Proximity to Ibiza Town, relaxed beach atmosphere, good dining choices.

Can get crowded in peak season, limited shopping options.

Sant Jordi de ses Salines

Sant Jordi de ses Salines is a residential area near the airport, famous for its lively street market and proximity to major clubs.

Convenient location, vibrant market, close to nightlife.

Can be noisy due to proximity to the airport, limited historic sites.

San Rafael

San Rafael is a picturesque village known for its stunning countryside views, traditional architecture, and artisanal shops.

Rural charm, artisanal crafts, peaceful atmosphere.

Not as bustling as coastal areas, limited public transport.

Es Canar

Es Canar is a laid-back resort town with a relaxed beach, popular hippie market, and family-friendly attractions.

Friendly for families, hippie market, beachfront location.

Less vibrant nightlife, limited cultural events.

San Antonio Bay

San Antonio Bay is a picturesque bay area with quieter beaches, stunning sunsets, and a variety of watersports activities.

Peaceful beaches, beautiful sunsets, watersports opportunities.

Less lively nightlife, can be touristy in some areas.


Portinatx is a tranquil resort town located in the north of the island, known for its crystal-clear waters and relaxing atmosphere.

Scenic beauty, calm environment, good snorkeling spots.

Remote location, limited public transportation.

Cala Llonga

Cala Llonga is a family-friendly resort area with a sheltered bay, soft sandy beach, and a variety of watersports facilities.

Family-oriented, calm waters, watersports amenities.

Quieter nightlife, limited historical attractions.

Life in Ibiza

The economy of Ibiza is largely based on tourism, with visitors drawn to the island's many beaches, nightlife, and cultural attractions. Additionally, the island has a strong agricultural sector, with its main products being olive oil, wine, and almonds.

What expats usually like the most about Ibiza is its vibrant nightlife and its stunning beaches. They also appreciate the range of cultural activities, with its many festivals, galleries and markets.

Access to healthcare in Ibiza is generally good, with a wide range of public and private medical services available.

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Renting out in Ibiza

This section is for you if you want to buy property solely for renting out and earning income.


Tenant Profiles in Ibiza

According to the data reported by Wikipedia, the home ownership rate in Spain is 76%, which is average.

It means that, if you decide to buy and rent out in Ibiza, there will be a good number of people who can become your potential tenants.

If you decide to buy and rent out to long-term tenants, you should target those looking for a relaxing holiday destination such as families, couples, and retirees. For short-term tenants, you should target those looking for a vibrant nightlife such as young professionals and students.

Here is a little summary table we've made for you.

Property type and area Profiles of potential tenants What they are looking for Expected monthly rent in $

Apartment in Ibiza Town

Young professionals, expats

City lifestyle, nightlife

$1,000 - $2,500

Villa in Santa Eulalia

Families, retirees

Beaches, family-friendly

$2,000 - $4,000

Studio in San Antonio

Young professionals, tourists

Entertainment, coastal

$800 - $1,500

Finca in San Juan

Artists, nature lovers

Rural, tranquility

$1,500 - $3,000

Apartment in Playa d'en Bossa

Partygoers, tourists

Beach access, nightlife

$1,200 - $2,500

Penthouse in Talamanca

Affluent individuals, expats

Luxury living, sea views

$2,500 - $5,000

Apartment in Cala Tarida

Families, beach lovers

Quiet area, beaches

$1,500 - $3,000

Rental yields

Nowadays, the rental yields you get in Ibiza are between 5% and 7%. There are some opportunities. So you know, a "good" rental yield is above 7%.

The best rental yields in Ibiza are usually from properties located in central areas such as Ibiza Town and Santa Eulalia, as they tend to attract higher levels of tourism due to their proximity to the main beaches, nightlife and attractions. Additionally, properties located in the more rural parts of the island, such as San Jose and San Juan, also offer good rental yields due to their more peaceful environment and attractive landscapes.

For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.

Finally, be aware that rental incomes in Ibiza are taxed at 19%, which is rather good.


You could also decide to rent short-term to tourists looking for a holiday destination, as well as partygoers looking to experience Ibiza's nightlife. You could also rent to DJs and musicians who are performing in Ibiza's clubs and festivals.

If you decide to go with that option, look for properties in Playa d'en Bossa, Santa Eulalia, and San Antonio. These are popular tourist areas with plenty of short-term rental opportunities.

There are approximately 895 active Airbnb listings in Ibiza, reflecting a dynamic short-term rental market. The average daily rate stands around $318, which is quite high.

You have the opportunity to generate a nice additional income stream then. According to online testimonials and analytics platform like AirDNA, Guesty and Inside Airbnb, people who offer short-term rentals in Ibiza can make around $4000 per month. Also, the average occupancy rate is estimated at 68%.

Is it worth buying real estate in Ibiza then?

If you're someone with deep pockets and a passion for the Mediterranean lifestyle, buying property in Ibiza is a no-brainer. It's the ultimate playground for the rich and famous, offering everything from luxurious villas with sea views to a buzzing nightlife scene.

Plus, Ibiza's property market has shown stability, and with an expected economic boom on the horizon, your investment is likely to appreciate over time. So, if you've got the cash to spare and the desire to own a slice of paradise, go for it.

On the flip side, if you're on a budget or looking for a quick return on investment, Ibiza might not be your best bet. Property prices can be sky-high, especially in sought-after areas, making it a challenge for average folks to enter the market.

Additionally, strict tourist rental regulations could spell trouble for those hoping to make a quick buck through short-term rentals. And let's not forget the fierce competition and inflated prices in certain regions. So, if you're counting your pennies or looking for a low-risk investment, you might want to set your sights elsewhere.

In the end, whether Ibiza is a real estate dream or a financial nightmare depends on your financial situation and willingness to take a plunge into this Mediterranean hotspot.

Make sure you understand the real estate market in Ibiza

Don't rush into buying the wrong property in Spain. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.

real estate market Ibiza

The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.