Tax and legal advice for Mallorca properties
If you wish to purchase a property on Mallorca, regardless of whether as a main or holiday home, it is important to get professional and detailed advice about the tax situation as well as the tax obligations.
We, from Private Property, work together with a very competent and knowledgeable team of German-speaking lawyers and tax advisors, which inform you extensively about the Spanish property law and explain you the costs and taxes incurred by you when making a purchase of a real estate on Mallorca.
Taxes on Mallorca real estate
Here we distinguish between the one-time payable taxes:
- VAT (Value added tax)
- Real Estate Transfer Tax
and ongoing, annually payable taxes:
- Property Tax
- Income Tax
- Wealth Tax
In a personal conversation, our team of experts will give you a detailed breakdown of all costs and provide you valuable tips for succession planning and tax optimization of your Mallorca Property.
What taxes incur by the sale of a properties on Mallorca?
If you as an owner of a Mallorca property would like to sell, it is also necessary that you receive comprehensive advise about the tax situation. Here is first of all to clarify whether you act as a legal person, for example on behalf of a company or occur as a natural person. Furthermore, it is important to know whether you are registered as resident in Spain or not.
The seller is obliged to pay the municipal capital gain tax (Plusvalía). This is a so-called land value increase tax, which as the name implies, is a tax which will levied on the value of land.
If the seller of the property act in the name of a company, the usual corporation of 30% have to be payed from the gain (income tax of the Company).
If the owner is a natural person, subject to the profit from the sale of his property the income tax. There are different tax rates for residents and non-residents. The profit is calculated between the difference between the purchase price and the sale price.
We gladly inform you comprehensively about tax and legal issues regarding your Mallorca property.
Private Property is your Mallorca real estate agent for a comprehensive tax and legal advice from real estate on Mallorca.