{"id":3371,"date":"2026-03-04T09:38:06","date_gmt":"2026-03-04T08:38:06","guid":{"rendered":"https:\/\/mallorca-portal.com\/taxes-mallorca-expats\/"},"modified":"2026-07-10T19:38:09","modified_gmt":"2026-07-10T17:38:09","slug":"taxes-mallorca-expats","status":"publish","type":"post","link":"https:\/\/mallorca-portal.com\/en\/taxes-mallorca-expats\/","title":{"rendered":"Taxes in Mallorca for Expats \u2013 What You Need to Know"},"content":{"rendered":"

Moving to Mallorca means dealing with the Spanish tax system<\/strong>. For expats, there are several key considerations \u2013 from double taxation agreements to wealth tax and special reporting obligations.<\/p>\n

When do you become tax resident in Spain?<\/h2>\n

The 183-day rule<\/strong> is decisive: anyone spending more than 183 days per calendar year in Spain becomes a full tax resident. This means your worldwide income<\/strong> is taxed in Spain \u2013 not just income earned in Spain.<\/p>\n

Note:<\/strong> The 183-day rule is only one of the criteria. If your centre of vital interests \u2013 your family, your main economic activity or your habitual home \u2013 is in Spain, you can be deemed tax resident even before reaching 183 days.<\/p>\n

Key tax types<\/h2>\n

Income Tax (IRPF)<\/h3>\n

Spanish income tax is progressive, ranging from 19% to 47%<\/strong>. The Balearic Islands add a regional surcharge. Allowances and deductions exist but are structured differently from other European countries.<\/p>\n

Wealth Tax (Impuesto sobre el Patrimonio)<\/h3>\n

The Balearic Islands levy a wealth tax<\/strong>. The allowance is 700,000 euros (plus 300,000 euros for your primary residence). Assets above this are taxed at 0.28% to 3.45%.<\/p>\n

In addition, Spain has introduced the solidarity tax on large fortunes<\/strong> (Impuesto Temporal de Solidaridad de las Grandes Fortunas<\/em>), which targets very high net worth and interacts with the regular wealth tax.<\/p>\n

Property Tax (IBI)<\/h3>\n

The Impuesto sobre Bienes Inmuebles<\/strong> is a local property tax charged by the municipality, typically 0.4% to 1.1% of the cadastral value.<\/p>\n

Inheritance and gift tax<\/h3>\n

Spain levies its own inheritance and gift tax<\/strong>. The Balearic Islands grant substantial reductions for close relatives. Early planning can save a lot of money \u2013 especially where Mallorca property is involved.<\/p>\n

Double taxation agreements<\/h2>\n

Most European countries have agreements with Spain regulating which country has taxation rights for different income types. Generally, if you live in Spain, you pay taxes there. Pensions are usually taxed in Spain (exception: government pensions from some countries).<\/p>\n

Important:<\/strong> When you move to Spain, make sure you deregister properly in your home country. Whether you remain partially taxable there afterwards depends on your income sources and any remaining economic ties.<\/p>\n

The Beckham Law \u2013 flat tax for new arrivals<\/h2>\n

Many expats have never heard of it: employees (and, since 2023, many remote workers) who move to Spain for a new job can apply for a special regime that taxes their Spanish employment income at a flat rate instead of the progressive scale<\/strong> for several years. The application deadline starts running as soon as you register with Spanish social security \u2013 so look into it early.<\/p>\n

\u2192 All requirements, benefits and pitfalls: our complete guide to the Beckham Law in Spain<\/a>.<\/p>\n

Modelo 720 \u2013 Reporting overseas assets<\/h2>\n

Every tax resident in Spain with overseas assets exceeding 50,000 euros (bank accounts, securities or property) must file Modelo 720<\/strong>. Deadline: 31 March of the following year. Penalties for non-reporting were reduced following an EU ruling in 2022.<\/p>\n

If you hold cryptocurrency<\/strong> on foreign exchanges, you may additionally need to file Modelo 721<\/strong> \u2013 the reporting obligation for crypto assets held abroad.<\/p>\n

Filing your tax return<\/h2>\n

The annual tax return (Declaraci\u00f3n de la Renta<\/em>) must be filed between April and June. The Spanish tax authority (Agencia Tributaria<\/em>) offers an online service but it is often insufficient for expats with complex situations.<\/p>\n

Tip:<\/strong> Apply for a digital certificate (Certificado Digital<\/em>) or the Cl@ve identity as early as possible. With it, almost every interaction with Spanish authorities can be handled online \u2013 from your tax return to official correspondence.<\/p>\n

Non-resident tax (IRNR)<\/h2>\n

If you own property in Mallorca but are not tax resident in Spain, you pay Spanish non-resident income tax (IRNR<\/em>) instead: an annual imputed income tax on your property (filed with Modelo 210) even if you never rent it out, and tax on rental income if you do \u2013 19% for EU\/EEA residents, 24% for others. On top of that comes the local property tax (IBI<\/em>) charged by the municipality.<\/p>\n

FAQ: Spanish tax for foreigners in Mallorca<\/h2>\n

When do I become tax resident in Spain?<\/h3>\n

If you spend more than 183 days per calendar year in Spain, or if your centre of economic or family interests is here, you are tax resident and pay Spanish income tax on your worldwide income. The days do not need to be consecutive.<\/p>\n

What is the Beckham Law?<\/h3>\n

A special regime for employees who relocate to Spain for work: on application, Spanish employment income is taxed at a flat 24% (up to 600,000 euros) for up to six years, and most foreign income stays outside Spanish taxation. It must be requested within six months of registering with Spanish social security. Read our full guide to the Beckham Law<\/a> for details.<\/p>\n

When is the Spanish tax return due?<\/h3>\n

The annual income tax campaign (Renta<\/em>) runs from early April until 30 June for the previous calendar year. Non-resident property owners file Modelo 210 separately \u2013 for imputed income, the deadline is the end of the following year.<\/p>\n

Do I pay tax twice, in Spain and at home?<\/h3>\n

No. Spain has double taxation agreements with Germany, the UK, the US and most other countries. The agreement determines which country taxes what, and taxes paid abroad are generally credited \u2013 but you may still have filing obligations in both countries.<\/p>\n

Bottom line:<\/strong> Spanish tax law differs from what most expats are used to in many respects. If you plan your move early and get professional advice, you can avoid unpleasant surprises \u2013 and often make use of entirely legal tax advantages.<\/p>\n

Tip:<\/strong> A local tax advisor in Mallorca<\/a> is the best investment for most expats.<\/p>\n

Back to our moving to Mallorca guide<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Moving to Mallorca means dealing with the Spanish tax system. For expats, there are several key considerations \u2013 from double taxation agreements to wealth tax and special reporting obligations. When do you become tax resident in Spain? The 183-day rule is decisive: anyone spending more than 183 days per calendar year in Spain becomes a<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_rtcl_gb_attr":"","footnotes":""},"categories":[443],"tags":[],"class_list":["post-3371","post","type-post","status-publish","format-standard","hentry","category-finanzen-steuern"],"_links":{"self":[{"href":"https:\/\/mallorca-portal.com\/en\/wp-json\/wp\/v2\/posts\/3371","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mallorca-portal.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mallorca-portal.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mallorca-portal.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mallorca-portal.com\/en\/wp-json\/wp\/v2\/comments?post=3371"}],"version-history":[{"count":2,"href":"https:\/\/mallorca-portal.com\/en\/wp-json\/wp\/v2\/posts\/3371\/revisions"}],"predecessor-version":[{"id":3919,"href":"https:\/\/mallorca-portal.com\/en\/wp-json\/wp\/v2\/posts\/3371\/revisions\/3919"}],"wp:attachment":[{"href":"https:\/\/mallorca-portal.com\/en\/wp-json\/wp\/v2\/media?parent=3371"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mallorca-portal.com\/en\/wp-json\/wp\/v2\/categories?post=3371"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mallorca-portal.com\/en\/wp-json\/wp\/v2\/tags?post=3371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}