Taxes for owners

What you pay each year

Owning a home in Mallorca brings several yearly charges. Some apply to every owner: the local property tax (IBI), council charges for rubbish and, in a shared building or development, community fees. Others depend on your situation: income tax if you are not resident in Spain, tax on any rent, the tourist tax if you let to holidaymakers, and wealth taxes on large estates. Three kinds of body collect them: the town hall (often through the ATIB, the Balearic tax agency, which also collects the tourist tax), the AEAT (Agencia Tributaria, the Spanish national tax agency) and your community of owners. This guide is written for owners who are not tax resident in Spain. If you become tax resident, for example by spending more than 183 days here in a calendar year, different rules apply: see the last section. Every return needs your NIE, the foreigner’s identity number: see How to get a NIE number.

Valor catastral

The cadastral value: an official value set by the Catastro, the national property register for tax. It is printed on your IBI receipt and is the starting point for IBI and imputed income.

IBI

Impuesto sobre bienes inmuebles: the yearly local property tax charged by the town hall.

IRNR

Impuesto sobre la renta de no residentes: non-resident income tax, paid to the AEAT.

Modelo 210

Form 210, the non-resident income tax return used for imputed income and for rent.

ATIB

Agència Tributària de les Illes Balears, the Balearic tax agency. It collects the tourist tax and, for most Mallorca councils, local taxes such as IBI.

Ordenanza fiscal

A town hall’s tax bylaw, which sets its local tax rates and fees each year.

IBI, the local property tax

IBI is the yearly property tax charged by the town hall. Whoever owns the property on 1 January owes the whole year’s tax. It is a percentage of the taxable value on your receipt, which is the cadastral value, reduced for up to nine years after a general revaluation. National law, the Local Finance Act, lets councils set the rate for urban property between 0.4% and 1.10%. Small extra points are allowed in some cases, such as a regional capital or a council that runs public buses, and lower rates for up to six years after a general revaluation. Each council publishes its rate in its tax bylaws. In Palma the 2026 rate for urban property is 0.445%, so a home with a taxable value of €200,000 pays €890 a year.

For the autumn 2026 receipts, requests to pay by direct debit must reach the ATIB by 2 November 2026 (Alcúdia’s deadline was 11 October). In the ATIB’s online Carter Virtual service you can see your receipts and choose the day the charge is taken. Direct debit avoids missing a receipt: an unpaid local tax receipt attracts a surcharge of 5%, 10% or 20%, depending on how late you pay, and late-payment interest is added at the 20% stage.

Rubbish fees and other council charges

Rubbish charges are set by each town hall, so they vary across the island. Under Spain’s waste law, Law 7/2022, every council had to bring in, by April 2025, a specific fee that covers the real cost of collecting, transporting and treating waste. The law also lets councils treat holiday lets differently to encourage separate collection. Depending on the council, the fee comes as its own receipt or alongside other local taxes.

In Palma, homes pay a waste treatment fee of €126.27 a year in 2026, under the city’s tax bylaws. The ATIB collected it from 16 March to 1 June 2026, in the same period as the vehicle tax. Other councils set their own amounts and dates, so check your own town hall’s bylaw or the ATIB calendar.

Other council charges you may see include:

• A fee for a vehicle entrance across the pavement (gual), which Palma collects with the IBI.
• Sewerage fees in some councils, which Artà, for example, collects with its rubbish fee.

Community fees

Most flats, and many houses in developments, belong to a community of owners (comunidad de propietarios). Under the Horizontal Property Law, every owner pays a share of the general costs of the building and its services according to the participation quota (cuota de participación) in the title deeds, unless the rules say otherwise. The owners’ meeting (junta de propietarios) must meet at least once a year to approve the budget and accounts. The community must also keep a reserve fund of at least 10% of its last ordinary budget for repairs and works, paid for by the owners.

There is no official average fee. Amounts depend on the building, its services and your quota. Before buying, ask for the current budget, the minutes of recent meetings and any approved one-off payments for works (derramas). If you let to tourists, the community can raise your share of costs by up to 20% with a three-fifths vote: see Holiday rental licences.

Income tax on a home you do not let

If you are not tax resident in Spain and keep the home for your own use, Spain taxes a notional income from it even though you receive nothing. This imputed income (renta imputada) is a percentage of the cadastral value, shared out by the days you owned the home in the year and your share of ownership. You pay non-resident income tax on it, with no deduction for any costs. Plots with no building and homes still under construction are left out. A country property (finca) with a house counts, unless the buildings are needed for farming. The rules are in article 24.5 of the non-resident income tax law, which applies article 85 of the Spanish income tax law.

1. 1

   Find the cadastral value

   It is on your IBI receipt. Ask your adviser whether your municipality’s values were revised in a general valuation from 2012 onwards, because that decides between 1.1% and 2%.

2. 2

   Count days and shares

   Work out the days you owned the home in the year and your ownership share. Days when the home was let are declared as rent instead. Each co-owner, including a spouse, files their own return.

3. 3

   Work out the tax

   Multiply the cadastral value by the percentage, then by your days and your share, then apply 19% or 24%.

4. 4

   File Form 210

   Imputed income for 2025 is filed and paid between 1 January and 31 December 2026. Under Order HAC/623/2026, from the 2026 income the window is 1 April to 31 December of the following year, with direct debit possible until 23 December.

5. 5

   Keep the records

   Keep the IBI receipt, the deed, proof of payment and proof of where you are tax resident.

Income tax on rent

Rent from a Mallorca home is taxed in Spain, whether you let long term or to holidaymakers. A non-resident pays non-resident income tax on it, on Form 210. The rate, and whether you can deduct costs, depend on where you are tax resident. Non-residents do not get the percentage reductions that Spanish residents can claim for letting a home as someone’s main residence.

For EU and EEA residents, each expense must be directly linked to the rent earned in Spain, and a tax residence certificate from your home country must be attached when you deduct expenses. Under the income tax regulations, deductible costs include:

• Mortgage interest on buying or improving the home, plus repairs and maintenance. Together these cannot exceed the year’s rent; any excess can be used in the next four years.
• Local taxes and fees on the property, such as IBI and the rubbish fee.
• Amounts paid to others for management, caretaking and similar services.
• Costs of drawing up the lease, and legal costs relating to the property.
• Insurance on the property: liability, fire, theft and similar.
• Services and supplies paid by the owner, such as utilities.
• Wear and tear of up to 3% a year of the higher of the purchase cost or the cadastral value, excluding the land.
• Rent that proves unrecoverable, under strict conditions.

Since the 2024 tax year a whole year’s rent can be grouped in one return. Under Order HAC/623/2026, returns with tax to pay are now due from 1 to 20 April of the following year, whether you group the year or file each payment separately. The change started with 2026: a grouped return for 2026, and separate returns for rent from October to December 2026, are due 1 to 20 April 2027. Separate returns for January to September 2026 kept the old quarterly dates (1 to 20 April, July and October 2026). Returns where expenses cancel out the rent, so nothing is due, are filed from 1 to 20 January of the following year. From 2027 Form 210 also asks for a breakdown of deductible expenses.

Holiday lets: tourist tax and VAT

Letting to tourists needs a holiday-let registration first: see Holiday rental licences. The income is taxed as rent, as explained above. Two more taxes come with it.

Tourist tax. Guests owe the Balearic tourist stay tax (impuesto sobre estancias turísticas) under Law 2/2016. The owner or operator collects it and pays it to the ATIB. Holiday homes pay by a yearly receipt that the ATIB issues from the details registered for the home: the law lets the amount be worked out from indicators such as the number of guest places and the period the home is open, instead of a count of actual guest nights. The 2025 tax was due from 1 May to 30 June 2026.

VAT from 1 December 2026. Letting a furnished home has been free of VAT unless the owner provides hotel-type services such as cleaning, laundry or meals. Royal Decree-law 29/2026 adds a second case from 1 December 2026: any let of 30 nights or fewer to the same guest, unless it is in the owner’s own main home. These lets will pay VAT at the reduced rate of 10%. The decree still has to be validated, as explained above. If it stands, holiday-let owners would have VAT to charge and declare, so ask your adviser what registration and returns this would mean for a non-resident.

Wealth tax and the solidarity tax

Spain has a wealth tax (impuesto sobre el patrimonio), charged on what you own on 31 December. A non-resident pays only on assets in Spain, minus debts linked to them, such as a loan taken to buy the property. A home is valued at the highest of its cadastral value, a value set by the tax authorities for another tax, or the price you paid. Non-residents may apply the rules of the region where the greater part of the value of their Spanish assets lies, so an owner whose Spanish assets are mainly in Mallorca can use the Balearic rules. Otherwise the national exemption of €700,000 applies. Since 1 January 2024 the Balearics exempt the first €3,000,000 of net wealth. Tax is charged on the amount above that, using the scale below.

• You must file a wealth tax return (Form 714) if there is tax to pay, or if your Spanish assets are worth more than €2,000,000 before debts, even when nothing is due.
• The 2025 return was due from 8 April to 30 June 2026, or by 25 June if paying by direct debit. Dates for the 2026 return are set each spring.
• The exemption of up to €300,000 for a main home covers the home that counts as your main residence for Spanish income tax, so it does not normally help with a non-resident’s holiday home.

The solidarity tax on large fortunes (impuesto temporal de solidaridad de las grandes fortunas) is a national tax created by Law 38/2022 for net wealth over €3 million. It was meant to be temporary but has been extended until wealth taxation is reviewed as part of a reform of regional financing. It allows €700,000 off and then taxes the rest on the scale below, so in practice nothing is due unless net wealth exceeds €3.7 million. Wealth tax paid is deducted, so the solidarity tax only adds to your bill where it comes to more. Non-residents pay it on their Spanish assets. Form 718 is filed from 1 to 31 July, only when there is tax to pay.

Tax representatives, becoming resident and key dates

A tax representative (representante fiscal) is a person or company resident in Spain whom you formally appoint to deal with the tax authorities for you. Whether you must have one depends on the tax and where you live. Residents of Iceland, Liechtenstein and Norway are treated like EU residents where tax assistance agreements are in place.

The appointment must be notified to the AEAT with the representative’s written acceptance: for income tax, within two months. Failing to appoint one when required is a serious offence, with a fixed fine of €2,000 for income tax (€6,000 for residents of countries with no effective exchange of tax information) and €1,000 for wealth tax.

If you become resident. You are tax resident in Spain if you spend more than 183 days here in a calendar year, or if your main business or economic interests are here. Occasional absences still count towards the 183 days unless you can prove you are tax resident in another country. Spain also presumes residence if your spouse (not legally separated) and your under-age children who depend on you live here. Residents pay Spanish income tax and wealth tax on their worldwide income and assets, with different allowances, and your home country may also treat you as resident. This guide does not cover residents: talk to a personal tax adviser, and see Moving to Mallorca.

Questions buyers ask