Sundry tax information – what owners of Mallorca real estate need to know in 2018
The acquisition
There are three ways to become the owner of a property – buy it, inherit it, or receive it as a gift. A buyer has to deal either with sales tax (10% on completed residential real estate) or with land transfer tax (8 to 11 per cent). In the case of an inheritance worth up to 700.000 euros the heir pays a Balearic inheritance tax of 1 per cent, always providing that he is a direct relative (spouse, child, grandchild or also, for example, parents) and has no other Spanish assets. Beware: In the case of other family relationships (brother, daughter-in-law, etc.) it becomes much more expensive.
In the case of gifts, under the same ideal conditions as for inheritance the recipient would pay 7 per cent gift tax. Beware: The tax consequences for the benefactor can be consi...