Tax advantages when buying property in Mallorca for foreign investors

Mallorca is not only a dream destination for holidaymakers, but also one of the most sought-after destinations for property investments in Europe. In addition to the pleasant climate and excellent infrastructure, the island also offers attractive tax advantages for foreign buyers. In this guide, you will learn everything about the most important tax aspects and savings opportunities when buying a property in Mallorca.

Why Mallorca is particularly attractive for investors

1. Stable property prices and high value appreciation

Continuous demand for high-quality properties

Growing popularity among international buyers

Long-term value appreciation potential

2. Tax incentives for investors

Different taxation depending on the type of use (private or commercial)

Possible tax relief through investment models

Double taxation agreements between Spain and other countries

Types of taxes when buying property in Mallorca

1. Property transfer tax (Impuesto sobre Transmisiones Patrimoniales, ITP)

Due when buying an existing property

Graduated according to the purchase price with rates between 8% and 11%

2. Value added tax (IVA) and stamp duty (AJD)

Applies to new properties and is 10% IVA plus 1.2% AJD

No additional property transfer tax required

Possible Table:

Property type

Tax type

Tax rate

Existing property

ITP

8-11%

Newly built property

IVA + AJD

10% + 1.2%

Tax advantages for non-residents

1. Favorable income tax regime

Flat tax of 19% for EU citizens on rental income

Deduction of maintenance costs and other expenses possible

2. No wealth tax up to certain allowances

Exemption of €700,000 per person

Value of the property can be optimized under certain conditions

Investment strategies for tax optimization

1. Purchase through a Spanish company

Cheaper tax burden for commercial use

Possible reduction in inheritance tax

2. Use of double taxation agreements

Avoid double tax payment in the home country

Tax planning options through advice

Conclusion: Use tax advantages in a targeted manner

Those who choose the Anyone who decides to buy property in Mallorca can enjoy significant tax advantages through strategic planning. Professional advice is essential to find the best solution for individual needs.

Why Mallorca Topimmobilien is your ideal partner

Our experienced team at Mallorca Topimmobilien knows all tax aspects and will competently accompany you through the entire purchase process. We offer:

Exclusive selection of high-quality properties

Individual advice on tax optimization

Transparent and secure purchase processing

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