Income tax returns for foreign residents in Mallorca

Living and paying tax in Mallorca

Mallorca's residents come from many countries, each with its own treaty with Spain. A German pensioner, a British remote worker and a Swiss investor living on the same street in Palma will have very different returns. Residents who own a second home on the island or abroad also declare it, and families with high property values may need to check wealth tax too.

What goes into your Spanish return

Item	What we check
Foreign pensions and salaries	Which country taxes them under the treaty
Dividends, interest, gains	Savings scale and foreign tax credit
Rental income	Expenses and reductions
Joint or individual	We compare both every year
Modelo 720 and wealth tax	Thresholds and filing

How we prepare your return

Before the campaign we collect your foreign and Spanish documents, explain the result in English or German and only file once you have approved it. We also keep the calendar for the modelo 720 and wealth tax, and answer any letter from the tax agency about your return.

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

An illustrative example

Based on situations we commonly see; not a specific client. A family from Munich living in Palma had a salary from a Mallorcan company, a rented flat in Germany and a German share portfolio. We declared everything with the treaty relief, filed the modelo 720 and compared joint and individual returns.

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.