Question 1

What taxes do I pay when buying property in Mallorca?

Accepted Answer

Buyers pay ITP (property transfer tax) of 8-13% for resale properties or IVA (VAT) of 10% plus AJD of 1.5% for new builds. Additional costs include notary fees (0.1-0.5%), land registry (0.1-0.3%), and legal fees (1-1.5%).

Question 2

What is the Beckham Law and who qualifies?

Accepted Answer

The Beckham Law (Régimen Especial de Impatriados) allows new tax residents in Spain to pay a flat 24% income tax rate on Spanish-sourced income for up to 6 years. You qualify if you haven't been a Spanish tax resident in the previous 5 years and relocate to Spain for work.

Question 3

Is Spain's property investor visa still available?

Accepted Answer

No. Spain abolished the investor visa route for new applications from 3 April 2025. A property purchase no longer creates eligibility for a new Golden Visa. Seek current advice on alternative residence routes.

Question 4

What annual taxes apply to property owners in Mallorca?

Accepted Answer

Annual taxes include IBI (property tax, 0.4-1.1% of cadastral value), IRNR (non-resident income tax, 19-24% on rental income or 1.1% imputed income), and Patrimonio (wealth tax, 0.2-3.5% on net assets above €3M in the Balearics).