Inheritances in Ibiza
Ibiza and Formentera have their own section of Balearic civil law, different from Mallorca's, including the succession pact known as the finiquito. Because property values in Ibiza are high, the valuation and the reference value of the villa matter a lot: they set the inheritance tax and also the acquisition value if the heirs later sell, so declaring a realistic value protects them twice.
The steps of an inheritance
| Step | Who | Timing |
|---|---|---|
| NIEs, certificates, will | Heirs, with our help | First weeks |
| Extension request | We file it | Before month five, if needed |
| Valuation and tax return | We prepare it | Within six (or twelve) months |
| Plusvalía | We file it with the town hall | Within six months |
| Acceptance deed and registry | Notary and our lawyers | After filing |
How we handle inheritances
We coordinate the whole inheritance with our lawyers at Castell.law: documents, taxes, deeds and the release of bank accounts. Heirs can stay in their own country and sign a power of attorney there. We explain each step in English or German and give a written estimate of the tax before filing.
Our general service page explains the rules in more detail: Inheritance tax in Spain. We also advise in Mallorca, Menorca.
An illustrative example
Based on situations we commonly see; not a specific client. Three siblings in the UK, Germany and Sweden inherited their mother's house in Santa Eulària. We coordinated powers of attorney, filed under Balearic rules with a realistic valuation, and the later sale produced almost no taxable gain.
This page is published by Castell.tax, the tax practice of Castell.law in Palma de Mallorca. It is general information; tax rules and rates change, so check your case with us before filing.
Not sure what you owe? Ask before the deadline
Send us your situation or the letter you received. A tax adviser will tell you what applies, what it could cost and what to file.
Frequently asked questions
Does Ibiza have different inheritance rules?
Its civil law differs from Mallorca's; the Balearic tax rules are the same.
Can we sell the inherited villa quickly?
Yes, once the inheritance is filed and registered.
Do heirs abroad pay inheritance tax on property in Ibiza?
Yes, Spanish inheritance tax on the Spanish assets, under Balearic rules.
Do we need to travel to Ibiza?
No, a power of attorney signed in your country is usually enough.