Non-resident tax for property owners in Menorca

Owning property in Menorca as a non-resident

In Menorca it is common to find homes bought many years ago, sometimes in pesetas, that have been used only by the family. That means imputed income every year, and often missed years to regularise. When those owners eventually sell, the long holding period and the old acquisition value make the capital gain calculation especially important.

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 Mallorca, Ibiza.

An illustrative example

Based on situations we commonly see; not a specific client. A retired English couple in Sant Lluís learned from their neighbours that they should have been filing. We filed the open years for both, set up the annual return and checked their IBI and cadastral data at the same time.

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.