Purchasing and renting a property in Mallorca involves tax obligations. In our article, we explain the key taxes, fees, and deadlines you should be aware of – from the property transfer tax to income tax on rentals and ongoing property taxes. This allows you to plan your investment safely and transparently.
Taxes in Mallorca: Buying & Renting Property
Buying or renting a property in Mallorca is a dream come true for many – but don’t let taxes catch you by surprise. In this article, you’ll find a clear and up-to-date overview of all the taxes that both owners and tenants may have to deal with on the island.
Taxes When Buying Property
Depending on whether the property is new or second-hand, you’ll pay either VAT or transfer tax.
Taxes During Ownership
Once you own a property, ongoing taxes such as IBI (property tax), garbage fees, and possible wealth taxes may apply.
Taxes When Renting Out
If you rent out your property long- or short-term, rental income tax and tourism license regulations must be observed.
Special Rules for Non-Residents
Non-residents have different obligations, including non-resident income tax and declaration procedures.
Summary & Conclusion
It’s crucial to plan ahead and consult with a tax advisor. Taxes in Mallorca are not necessarily higher than in other regions – but they are different.