Inheritance and Gift Tax: An Increase in the Rate Is Approaching
Why the debate on a state “minimum tax” coming from Madrid is becoming a real planning issue especially for foreign property owners and families with real estate on the islands—and why certain windows of opportunity still remain. On the Balearic Islands, where many foreign residents concentrate their wealth in property and retirement savings, any change […]
New obligation for seasonal rental contractsETV and short term rental contracts from 1 February to 2 March 2026
In recent years, Spain has significantly tightened administrative and tax controls over short term rentals. This process, which is particularly relevant in areas such as the Balearic Islands, directly affects thousands of foreign property owners, with the German speaking market representing a very significant share. From 1 February to 2 March each year, starting in […]
Key Considerations in a Fiscal Relocation
The decision to move to the Balearic Islands is often driven by a desire to enjoy its quality of life, favorable climate, and exceptional environment. However, after the excitement of relocating and settling into a new home, new residents—particularly those from German-speaking countries—are faced with an unavoidable reality: their first year as tax residents. This […]
The Importance of a Local Tax Advisor with International ExperienceWe support you in your investments
For foreign nationals who have chosen Mallorca as their second residence or investment destination, the island’s appeal is undeniable. However, its administrative framework can become a veritable labyrinth. A single property is subject to three layers of regulations: national, those of the Balearic autonomous community, and those of the local municipality where the property is […]
VERI*FACTU: The New Era of Electronic Invoicing in Spain – Need Assistance?
In an era of increasing digitalisation and tax control, Spain is taking a decisive step towards more transparent and secure invoicing. Starting in 2026, all companies and self-employed professionals will be required to comply with the new VERI*FACTU system, a regulation that will transform invoicing practices and ensure the traceability of every transaction. VERIFACTU (or […]
The tax authorities require individuals covered by the ‘Beckham Law’ to pay tax on their primary residence.
Under the appealing sun of the Balearic Islands, many foreign professionals and entrepreneurs have found a tax-efficient gateway to live and work in Spain through the so-called Beckham Law. This special regime, introduced in 2005 and reformed in January 2023, allows employees relocating to Spain to be taxed as non-residents for a period of six […]
New Deductions in Inheritance Tax
On July 9th, the Balearic government approved the 2025 budget package. Among the measures adopted is an extension of tax benefits in inheritance tax, aimed at promoting equality within families and encouraging investment in the real estate market. This could result in substantial tax savings, especially in cases of inheritances from uncles, aunts, nephews, or […]
Termination of Co-Ownership: A Tax-Efficient Solution for Non-Resident Heirs in Mallorca
In the real estate context of Mallorca, it is common for several heirs—often non-tax residents in Spain—to jointly acquire ownership of a property as a result of inheritance. This co-ownership situation can lead to conflicts, management difficulties, and, in many cases, an impasse regarding the use or disposal of the property. In this scenario, the […]
Special Tax for Non-Residents:Crisis Measure or Gateway to European Courts?
July 2025 The debate surrounding Spain’s housing market has taken an unexpected turn with the submission of a draft bill to Parliament proposing a 100% tax on the value of real estate acquired by non-residents and non-EU nationals. Defended by the government as an antidote to “foreign speculation,” this measure would require paying an amount […]
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 […]