The Taxes of buying a Property in Mallorca in 2024 have not increased with respect to the previous year.

Before even making an offer on a property in Mallorca, it’s wise to create a tax plan detailing the specific tax implications you may face once you make your purchase. This is important for understanding both the lump sum you will pay as well as the tax breakdown.

“I don’t want to know how it is calculated, I just want to know the amount to be paid.”
In this case, if you send me an email, or use my form, in a few hours you will receive (free of charge and without obligation) the tax calculation for the purchase of a property in Mallorca in 2024. Try my free Tax Calculator Service

What taxes to anticipate when buying a property in Mallorca in 2024

The tax implications of buying a property in Mallorca depends on the state of property: is it a new build or an existing home?

If you’re planning to buy a new property, or one that has been completely renovated by a property developer, you must pay a 10% tax rate. This is the VAT (otherwise known as IVA in Spain) that must be paid on the day of purchase. 

Afterwards, you will be required to pay a 1,5 % Spanish Stamp Duty Tax (Actos Jurídicos Documentados) within 30 days of signing the Purchase Deed. If the value of the property it’s over 1.000.000€ the Spanish Stamp Duty Tax is 2%. However, if you are buying an existing home from a private seller, you will have to pay a Transfer Tax (Impuesto de Transmisiones Patrimoniales or ITP) instead. You are expected to pay this within 30 days of the purchase.

To do the calculation, of the Taxes of buying a Property in Mallorca in 2024, the amount to be paid for each tranche or step up to the purchase price is calculated and then all the amounts are added together.

• For the tranche from 1 euro to 400,000 euros, 8% of the value is paid.
• For the tranche from 400,001 to 600,000 euros, 9% of the value is paid.
• For the tranche from 600,001 to 1,000,000 euros, 10% of the value is paid.
• For the tranche from 1.000.001 to 2.000.000 euros, 12% of the value is paid.
• For the tranche above 2.000.0001 euros, 13% of the value is paid.

So, if you are buy-in a 2.5M euros property, you will pay

• EXAMPLE 1: IF you buy 650.000 euros property you will pay as follows:
• For the tranche from 1 euro to 400,000 euros, 8% so, 32.000 euros
• For the tranche from 400,001 to 600,000 euros, 9%, so 18.000 euros
• For the tranche from 600,001 to the TOTAL PRICE (650.000 €), 10%, so 5.000 euros
• TOTAL: 32.000+18.000+5.000= 55.000 €
• EXAMPLE 2: IF you buy 2.5 M euros property you will pay as follows:
• For the tranche from 1 euro to 400,000 euros, 8% so, 32.000 euros
• For the tranche from 400,001 to 600,000 euros, 9%, so 18.000 euros
• For the tranche from 600,001 to 1,000,000 euros, 10%, so 40.000 euros
• For the tranche from 1.000.001 to 2.000.000 euros, 12%, so 120.000 euros
• For the tranche above 2.000.0001 euros, to TOTAL PRICE (2.5M€) 13%, so 64.999 euros
• TOTAL: 32.000+ 18.000+40.000+120.000+64.999=274.999 €

Annual taxes for property ownership in Mallorca

After detailing the tax to Buy a Property In Mallorca, let’s see the annual fees you will have to pay.

• 1.- An annual property tax (Impuesto de Bienes Inmuebles or IBI): this tax is paid once a year at the local town hall
• 2.-Garbage collection tax: this is also collected at the local town hall.
• 2.2- Incinerator tax: many localities collect this tax in conjunction with the garbage tax
• 3.- Income tax for non-residents: this tax (tax code 210) must be paid yearly by December 31st. You can liquidate the income from the property if it is a rental, but if you are not using it as a rental property you must pay an annual amount depending on the value of the home.
• 4.- Wealth tax: If you are a non-resident, you will only be liable for your Spanish assets. Wealth tax rates vary depending on the region. The Balearic Islands, where Mallorca is located, has a wealth tax rate ranging from 0.28% up to 3.45% depending on the worth of the assets.

Base payable (€)	Full payment (€)	Remaining liquidable base (€)	Tax rate (%)
0	0	170.472,04	0,28
170.472.04	477,32	170.465,00	0,41
340.937,04	1.176,23	340.932,71	0.69
681.869,75	3.528,67	654.869,76	1,24
1.336.739,51	11.649,06	1.390.739,49	1,79
2.727.479,00	36.543,30	2.727.479,00	2,35
5.454.958,00	100.639,06	5.454.957,99	2,90
10.909.951,99	258.832,84	From now on	3,45

Not every non-resident will pay this wealth tax. Wealth taxes are issued only when your assets exceed 3.000.000 euros. So, if your assets in Spain value 3.100.000,000 euros, you will only pay the wealth tax for 100,000 euros as that is the exceeding amount from the required 3.000.000 euro starting point.

We spanish also pay wealth tax. If you do become a Spanish resident, you will be liable for all your assets (worldwide). However, Spanish residents are allowed 3.000.000 euros in addition to another 300,000 euros for the value of their permanent residence.

“I don’t want to know how it is calculated, I just want to know the amount to be paid.”
In this case, if you send me an email, or use my form, in a few hours you will receive (free of charge and without obligation) the tax calculation for the purchase of a property in Mallorca in 2024. Try my free Tax Calculator Service

Free calculator of Taxes Tax Buying Property In Mallorca 2024

This free calculator of the Taxes you pay when Buying a property in Mallorca service does not involve any commitment on the part of the user.

If you fill the form or send me a mail (toni@palmalawyers.com) or contact by Whatsapp (+(34)678216706) In a few minutes I’ll send you the calculation of the taxes and costs of the purchase of your new home in Mallorca.

Only I need to know:

a) Where the property it’s located. Municipality

b) Purchase price

c) If it is a new or used property