Buying a House in Ibiza - beware illegally built properties

Many people are buying a house in Ibiza both as a business (renting) and a holiday home for off-peak season, some face financial disaster.
Article Last Updated: 09 Dec, 2023 under Property Purchase


Depending on the person you speak to, you will hear many suggestions on the best places to buy in Spain. Everyone is entitled to an opinion, however Ibiza has a lot to offer - especially for those who are considering renting out the property to holidaymakers, in order to help repayment of a mortgage taken out to finance the purchase,

Buying a house in Ibiza allows the owner to rent the property out during the holiday season to earn some money – and then use the property as a holiday home to enjoy during the off-peak season in this sunny and warm island. 

If you find a house in Ibiza that you are interested in purchasing, an important first step - and one certainly to take before making any payment – is to check the house’s legal situation. This is critical because there are many properties in Ibiza that have been built illegally or that have been extended illegally at some point. 

Depending on the works carried-out and when they were carried-out, the new owner can receive a fine for those constructions and may even be issued with a demolition order. Alternatively, there are houses in Ibiza that, while they were built illegally, will not give rise to a fine. 

Nonetheless, the new owners will not be permitted to refurbish the house (‘fuera de ordenacion). With its complex topography and more than precious landscapes, buying a House in Ibiza can turn into a financial nightmare: this has happened to quite a few people. 

2. Tourist Licences

It is also important to note that, to be able to rent your property to tourists, you will need to get a special permit (tourist license) which can only be issued if the property is legal. It goes without saying that, should you find yourself in any of the above situations, your dream home in Ibiza could turn into a financial disaster. 

Obviously, it is therefore critical that you have an independent expert evaluate the legal position of any house in Ibiza that you are considering purchasing.Such an expert will advise you on whether the type of building or extension in question may be successfully legalised or not. 

This will depend - among other things - on the exact location of the house, the size of the construction, build date, whether there are any disciplinary proceedings currently outstanding, from the local authorities, relating to a house - or not. 

We recommend reading through the buying property in Spain comprehensive legal guide, you may save lots of money and time.

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