Non-resident tax for property owners in Mallorca

Owning property in Mallorca as a non-resident

In Mallorca the cadastral values that drive imputed income vary widely between municipalities and between old and recently revised properties, so the rate of 1.1% or 2% must be checked property by property. IBI is collected by Palma's own office or, for many other town halls, through the Balearic tax agency, with different calendars. Owners of high-value villas in the southwest may also reach the wealth tax thresholds on their Spanish assets.

What non-resident owners must file

Obligation	When	What we do
Imputed income (home not rented)	By 31 December of the following year	Calculate and file for each owner
Rental income	Quarterly	Deduct expenses where allowed and file
Sale of the property	Within four months	Calculate the gain and recover the 3%
Wealth tax	April–June, if applicable	Check thresholds and file
Letters from the tax agency	Short deadlines	Answer for you

How we work with non-resident owners

We need the purchase deed, the IBI receipt and the owners' NIEs once; after that we file every year without you having to travel. You receive a short summary of what was filed and paid. If past years were missed, we regularise them before the tax agency writes, with surcharges far lower than penalties.

Our general service page explains the rules in more detail: Non-resident tax in Spain. We also advise in Ibiza, Menorca.

An illustrative example

Based on situations we commonly see; not a specific client. A German couple owning a finca near Santanyí had filed nothing for six years. We filed the four open years for both spouses before any letter arrived and set up the yearly filing, so the cost was limited to the tax and small surcharges.

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.