Are you a foreigner living in Mallorca? Transfer your property or assets to your children while paying only 1% in taxes
Did you know that if you are a foreigner residing in Mallorca, you can transfer your property or assets to your children while paying only 1% in taxes? Thanks to pactos sucesorios — a legal instrument unique to Balearic civil law — it is possible to legally and securely transfer assets in advance, with significant […]
I have a registered holiday rental (ETV). Starting July 1, 2025, I am required to register again.And if I rent out my house, which is not an ETV, for short periods — do I also need to register?
The answer is simple and definitive: Yes, whenever you intend to use digital platforms to advertise your properties, or if your agents do so on your behalf. The European Union has taken a significant step forward in regulating short-term rentals through the adoption of Regulation (EU) 2024/1028, which introduces a Single Digital Entry Point to […]
New Developments in the 2024 Income Tax Return for Tax Residents in Spain
The 2024 income tax return, which we will file in 2025, introduces significant changes that will affect all individuals residing in Spain, particularly in regions such as the Balearic Islands. In addition to the general amendments adopted at the national level, our region has introduced specific tax benefits that should be taken into account in […]
Keys to Declaring Assets Abroad in Form 720
If you are a tax resident in Spain and own assets or rights abroad, it is essential to be familiar with Form 720. This mandatory informative declaration aims to ensure that the Spanish Tax Agency is aware of assets that taxpayers hold outside the country. The deadline for submission is March 31, 2025. Since its […]
UNIFIED REGISTER FOR TOURIST AND TEMPORARY RENTALS
New European Regulation The European Union has taken a key step in regulating housing rentals with the approval of Regulation (EU) 2024/1028, which establishes a Digital Single Window to improve management and transparency in the sector. Spain is the first country to implement this regulation, adapting it through Royal Decree 1312/2024, which introduces the Unified […]
The Tax Office Intensifies Electricity Consumption Monitoring to Verify Tax Deductions
The tax authority has intensified its efforts to uncover potential irregularities related to the declaration of habitual residence, using electricity consumption as a key monitoring tool. This new practice aims to verify whether claimed tax benefits, such as deductions for home purchases or exemptions on capital gains from the sale of a primary residence, are […]
Do I have to pay VAT if I rent out a holiday home?
Renting out a holiday home can be somewhat complex, but we will explain in simple terms how VAT applies to the rental of a holiday home and the use of a management company to handle bookings. This is particularly important for property owners in the Balearic Islands who rent their homes to tourists and want […]
Tourist Rentals in the Spotlight: Possible Increase in VAT to 21%
The landscape of tourist rentals in Spain could undergo a dramatic shift if the current national government’s proposal to apply a 21% VAT rate to holiday rentals is approved. This measure has already caused concern among industry stakeholders and property owners. Until now, it was legally permissible for such properties to operate without VAT as […]
Recent developments in short-term rentals
The Supreme Court has ruled that homeowners’ associations can prohibit short-term rentals if more than half of the owners agree, without the need for unanimous consent. Previously, there were doubts about whether unanimous approval or just a majority was required to make this decision. However, the Supreme Court has clarified that a qualified majority of […]
You can now set up a direct debit for your Balearic taxes to be charged from foreign bank accounts.
Effective immediately, foreign taxpayers, both residents and non-residents, can now make their tax payments using bank accounts in other European countries. This European regulation is in line with the provisions of the SEPA directive, which facilitates transfers and payments within the Eurozone, including the 27 member states of the European Union, the Netherlands, and the […]