Selling property in Menorca
Purchase prices in pesetas are converted at the official rate of 166.386 pesetas per euro, and the purchase costs of the time count too. For properties bought before 1995, transitional rules may still reduce part of the gain accrued before 2006, subject to limits. Old renovation invoices are worth searching for, and the town hall's plusvalía after long ownership can be checked against the real-gain method.
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 Mallorca, Ibiza.
An illustrative example
Based on situations we commonly see; not a specific client. An English couple sold the house in Es Mercadal they had bought in 1989. We converted the price from pesetas, added the documented works of the 1990s and applied the transitional reduction where possible, which lowered the tax considerably.
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
How is a price in pesetas converted?
At the official rate of 166.386 pesetas per euro.
Is there relief for homes bought long ago?
Transitional rules may reduce part of the gain on properties bought before 1995.
How much tax will I pay when I sell my home in Menorca?
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.