Selling property in Mallorca
Each Mallorcan town hall applies its own plusvalía rate, so the same gain can cost differently in Palma, Calvià or Pollença. Many homes in Mallorca have been extended or renovated over the years: documented works, with licences and invoices, can reduce the gain considerably, while undocumented ones count for nothing. Gathering that evidence before listing the property is time well spent.
The taxes of a sale
| Tax | Who pays | When |
|---|---|---|
| Capital gains tax | Seller | Non-residents within four months; residents in the annual return |
| 3% retention | Buyer, on the non-resident seller's account | Within one month |
| Plusvalía municipal | Seller | Within 30 working days |
| IBI of the year | Usually split by days | At completion |
How we help sellers
We calculate the gain and the net proceeds before you agree the price, review the invoices that reduce the gain, file the plusvalía and the capital gains return after the sale, and claim back the 3% when it exceeds the tax. We work alongside your lawyer and the notary so completion goes smoothly.
Our general service page explains the rules in more detail: Tax on selling property in Spain. We also advise in Ibiza, Menorca.
An illustrative example
Based on situations we commonly see; not a specific client. A Swedish owner selling a villa in Santa Ponsa found the invoices for a pool and extension built twelve years earlier. Adding them to the acquisition value cut the taxable gain sharply and most of the buyer's 3% retention was refunded.
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
Who pays the plusvalía when selling in Mallorca?
Normally the seller, at the rate of the municipality.
Do residents over 65 pay tax when selling their home?
Not on their main home, subject to conditions.
How much tax will I pay when I sell my home in Mallorca?
It depends on the gain; we calculate it before you sign.
Can I recover the 3% retention?
Yes, if it exceeds the tax due on the gain.