Frequently Asked Questions

Foreign buyers mainly need a foreign national identification number (NIE) and, in practice, a Spanish bank account to pay the price and taxes. You do not have to live in Spain. The purchase usually starts with a deposit agreement (arras) and payment of a deposit, followed by signing the deed before a notary and registration at the Land Registry. Since April 2025, buying property has no longer provided access to the former “golden visa” residence scheme. If you cannot travel, you can sign through a power of attorney.

Resale homes attract transfer tax, charged progressively in the Balearic Islands from 8 %, with higher bands depending on value. New homes attract 10 % VAT and stamp duty. Notary and registration fees apply, alongside mortgage costs if applicable. If the seller is not resident in Spain, the buyer must withhold 3 % of the price and pay it to the Spanish tax authorities. As a non-resident owner, you will subsequently pay the local property tax (IBI) and Spanish non-resident income tax each year on the property.

Before signing, check the property at the Land Registry to establish ownership and identify mortgages or attachments. You should also review its planning status: all building work must have the necessary permission, without outstanding planning infringements, which are common on rural land. We also request the occupancy certificate, energy performance certificate and confirmation that there are no unpaid community charges or local property taxes (IBI). If you intend to let to tourists, check the licence first. Carrying out these checks before paying a deposit helps avoid unwelcome surprises.

Since August 2015, the European Succession Regulation has provided that the law of the deceased’s habitual residence applies, unless they chose the law of their nationality in their will. This choice is particularly useful for people living in Mallorca who want their estate governed, for example, by German or British law. Where Spanish law applies, Balearic civil law may be relevant, with its own forced heirship rules. We therefore recommend making a will in Spain and reviewing its terms with a lawyer familiar with your circumstances.

The amount depends mainly on the family relationship. The Balearic Islands provide almost complete inheritance tax relief for spouses, children and parents, subject to the statutory requirements. The tax burden can be substantial for siblings, nephews, nieces and unrelated beneficiaries. Heirs living outside Spain can generally apply Balearic rules, but certain reliefs have specific conditions, so each case needs individual assessment. The deadline for filing the inheritance tax return is six months from the death, extendable by a further six months if requested in time.

An inheritance can be handled without travelling to Mallorca. First, the death certificate, certificate of last wills and copy of the will are obtained. The heirs then use their NIE identification numbers to sign the notarial deed accepting and distributing the estate, either personally or under a power of attorney granted in their country with a Hague Apostille authenticating it. Inheritance tax and municipal tax on increased urban land value are then paid, and ownership is registered. We coordinate the process and explain every step in your language.

Only homes with a tourist rental licence (ETV) and registered tourist places may be let to tourists. New licences are currently very difficult to obtain: Mallorca’s places are limited, no new tourist homes are admitted in apartment buildings, and Palma grants no new authorisations. The property must also appear in Spain’s single national rental register, whose registration number platforms require. Letting without a licence attracts heavy fines. We recommend checking the individual property’s position before you buy it or advertise it for holiday letting to tourists.

In the Balearic Islands, the licence and its tourist places are attached to the property and generally transfer with it, but this must be checked before signing. We verify that the licence is valid and registered, how many places it covers and whether the property meets the conditions under which it was granted. In apartment buildings, we also check the community’s statutes and resolutions: since 2019, the community of owners has been able to restrict or prohibit tourist letting with a three-fifths vote of the owners.

Holiday rental income is subject to income tax. Owners resident in Spain declare it through personal income tax (IRPF). Non-resident owners pay non-resident income tax (IRNR), at 19 % for European Union residents, who may deduct expenses, and 24 % for others. Guests also pay the sustainable tourism tax, which the owner collects and pays to the authorities. From 1 December 2026, VAT at 10 % applies to short-term tourist rentals. The applicable income tax therefore depends on where the property owner is resident.

We work in Spanish, Catalan, English, German, French and Dutch. Many of our clients are foreign nationals investing, living or inheriting in Mallorca. Explaining their case in their own language helps avoid misunderstandings where every word matters, such as in a property purchase contract or a will. We work from our office on Carrer Oms in Palma, coordinating matters with trusted notaries, administrative agents and advisers in Spain and abroad. We also work remotely, using video calls and email to keep in touch with our clients.

Simply write through our contact form or call +34 971 72 80 08 and briefly explain your situation. A lawyer from the relevant practice area will consider your enquiry and propose a meeting, at our office or by video call, to assess your circumstances and explain the options. Before starting work, we set out the scope of the engagement and our fees. We have advised Spanish and international clients in Mallorca for over 35 years on property, tax, commercial, inheritance and tourism matters.

Yes. Our contact form accepts up to three attachments in PDF, Word, ZIP, JPG or PNG format, with a limit of 8 MB per file and 20 MB overall. They are stored in a private area of the server and accessed only by the firm’s staff. If you prefer another method, for example because your files are larger, email info@illeslex.com so we can agree how to send them. Receiving documents beforehand lets us study your case carefully and make better use of our meeting with you.