Original featureOwn a home in Mallorca? Your Spanish tax return is due by 31 DecemberMajorca Daily Bulletin · 20 October 2026 →

Key filing deadline and resident status

The Spanish tax return (Modelo 100) for any property situated in the Balearic Islands is due by 31 December, as reported by the Majorca Daily Bulletin on 20 October 2026. The deadline applies to both Spanish residents and non‑resident owners, although the forms and rates differ according to tax residency.

Core taxes that affect a Mallorca home

Four principal taxes shape the annual cash‑flow of a Mallorca property:

• Impuesto sobre Bienes Inmuebles (IBI) – a municipal property tax calculated on the cadastral value; the Balearic average for 2026 is reported at roughly 0.4 % of that value.

• Income tax on rental earnings – resident owners are taxed at the personal income tax scale (19 % for the first €12,450 of net rental income in 2026, rising to 21 % thereafter). Non‑residents face a flat 24 % rate on gross rental receipts, with no deduction for expenses.

• Capital gains tax (CGT) on a future sale – residents pay 19 % on the first €6,000 of gain, 21 % up to €50,000 and 23 % above that; non‑residents are taxed at a flat 24 % on the total gain.

• Transfer tax (Impuesto de Transmisiones Patrimoniales, ITP) on purchase – for second‑hand properties, the Balearic rate in 2026 is 10 % of the purchase price for non‑residents and 7 % for residents, payable within 30 days of signing the deed.

How the taxes translate into monthly cost – a simple example

Consider a €800,000 second‑hand villa in Palma de Mallorca bought by a non‑resident investor in 2026. The reported tax outlays would be:

• Transfer tax: 10 % × €800,000 = €80,000 (paid once).

• Annual IBI: 0.4 % × €800,000 ≈ €3,200, or €267 per month.

• Rental income: assuming a gross rent of €30,000 per year, the non‑resident income‑tax charge would be 24 % × €30,000 = €7,200, equivalent to €600 per month.

Adding the recurring items gives an estimated monthly cash‑outflow of €867, not counting mortgage interest or maintenance. The one‑off transfer tax raises the effective acquisition cost by 10 %.

If the same buyer were a Spanish resident, the transfer tax would fall to €56,000 (7 %), and the income‑tax liability would drop to roughly €5,700 (19 % of net rent after allowable expenses), reducing the monthly burden by about €150.

Other compliance points

Non‑resident owners must also submit Modelo 210 each quarter to pre‑pay the 24 % rental tax, otherwise a surcharge may be applied. Capital gains are declared in the final income‑tax return the year of sale, and any loss can be offset against future gains, subject to Spanish tax law.

Finally, owners should be aware of the 1 % municipal surcharge on properties valued above €1 million, introduced in the Balearic fiscal plan for 2026. The surcharge is calculated on the excess over €1 million and added to the IBI bill.

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Sources & credits

• Feature: Own a home in Mallorca? Your Spanish tax return is due by 31 December — Majorca Daily Bulletin. Linked, not reproduced.
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