Buyers spend months on the price and an afternoon on the running costs. On Mallorca that's the wrong way round. A non-resident owner pays Spanish tax every year on a house that may stand empty for most of it, so anyone weighing up luxury property in Mallorca should run the annual numbers before making an offer.
How is an empty Mallorca home taxed?
If the house isn't let, Spain taxes it anyway. The tax office imputes an income of 1.1 per cent of the cadastral value, or 2 per cent where that value hasn't been revised since 2012, and taxes it at 19 per cent for EU and EEA residents and 24 per cent for everyone else. Against a prime price it's a modest sum. It's also due every year, whether or not you set foot on the island.
How is rental income taxed?
Rental income is taxed at 19 per cent for EU and EEA residents, on the net figure after expenses. Everyone else, British owners included since Brexit, pays 24 per cent on the gross, historically with no deductions. Two neighbours letting identical houses on the same lane can face very different bills because of that one line.
| Charge | EU or EEA owner | Non-EU owner |
|---|---|---|
| Imputed income, house not let | 19 per cent on 1.1 per cent of cadastral value | 24 per cent on 1.1 per cent of cadastral value |
| Rental income | 19 per cent on the net | 24 per cent on the gross |
| Capital gains on sale | 19 per cent | 19 per cent |
Do non-residents pay wealth tax on Mallorca?
The Balearics charges wealth tax, on a regional scale that runs from 0.28 per cent to 3.45 per cent. Non-residents get a EUR 700,000 allowance and may apply the rules of the region where most of their Spanish assets sit, which for a Mallorca owner usually means the Balearics. The islands' own EUR 3 million allowance is for residents only. A return is due wherever tax is payable or the assets exceed EUR 2 million.
Above EUR 3 million of net wealth, the solidarity tax on large fortunes comes into view. For an owner who pays Balearic wealth tax in full it adds nothing, because wealth tax paid is deducted from it.
One structure is penalised every year regardless. A company resident in a tax haven that owns Spanish property pays a special 3 per cent a year on the cadastral value. If the house sits in an offshore company, deal with that before anything else on this page.
What does it cost to buy and sell?
Buying a resale home on the islands means transfer tax on a progressive scale, from 8 per cent up to EUR 400,000 to 13 per cent above EUR 2 million, applied as an average rate across the whole price. On a EUR 3 million resale that comes to EUR 340,000, about 11.3 per cent. A new build carries 10 per cent VAT plus stamp duty of 2 per cent once the value reaches EUR 1 million, so EUR 360,000 on the same price. Either way, the tax is charged on the higher of the price you declare and the official reference value.
Foreign buyers remain free to buy. A proposal to limit purchases by non-residents was debated and rejected by the Balearic parliament in February 2026.
Selling has its own mechanics. Every non-resident pays capital gains tax at 19 per cent, EU or not, and the buyer withholds 3 per cent of the price as a payment on account. Where the seller is a non-resident individual, the buyer stands in as taxpayer for the municipal land-value tax, so expect it to be settled at completion.
| Type | Tax | Amount |
|---|---|---|
| Resale | Transfer tax, progressive 8 to 13 per cent | EUR 340,000 (about 11.3 per cent) |
| New build | 10 per cent VAT plus 2 per cent stamp duty | EUR 360,000 (12 per cent) |
What happens on inheritance?
Close family inherit well here. Children, spouses and parents receive a 100 per cent regional relief on inheritances, and where the deceased was non-resident, the heirs can apply the rules of the region holding most of the Spanish assets. For how Spain, Andorra and Monaco compare on succession, see inheritance tax across the three countries.
Putting it together
No single charge here is large. Together they turn the running cost of a Mallorca home into a planning decision, and they reward owners who settle early whether the house will be let, who will own it, and through what. For every line item in one place, see what non-residents pay in Mallorca.
Questions buyers ask
Do non-residents pay tax on an empty holiday home in Mallorca?
Yes. Spain taxes an imputed income of 1.1 per cent of the cadastral value, or 2 per cent if that value hasn't been revised since 2012, at 19 per cent for EU and EEA residents and 24 per cent for others.
Is there wealth tax in Mallorca for non-residents?
Yes. The Balearics charges wealth tax at 0.28 to 3.45 per cent. Non-residents get a EUR 700,000 allowance; the islands' EUR 3 million allowance is for residents only.
Do British owners pay more tax in Mallorca after Brexit?
On rent, yes. Non-EU owners, British owners included, pay 24 per cent on gross rental income, against 19 per cent on net income for EU and EEA owners. Capital gains tax on a sale is 19 per cent for every non-resident.
How much transfer tax do you pay buying a house in Mallorca?
Resale homes pay a progressive transfer tax from 8 per cent to 13 per cent. On a EUR 3 million resale that's EUR 340,000, about 11.3 per cent.
Can foreigners still buy property in Mallorca?
Yes. A proposal to limit purchases by non-residents was rejected by the Balearic parliament in February 2026, so foreign buyers remain free to buy.
Does the solidarity tax apply to Mallorca property?
It applies above EUR 3 million of net wealth, but wealth tax paid is deducted from it, so an owner paying Balearic wealth tax in full owes no further solidarity tax.
Source: Agencia Tributaria: wealth tax for non-residents
Source: BOE: solidarity tax on large fortunes, Law 38/2022
