Inheritance and gift tax in the Balearic Islands
Inheriting or giving in Mallorca, with the taxes thought through.
An inheritance almost always comes at a bad time. The last thing you need is deadlines, forms and doubts, in a language that is not yours.
We handle the tax side and tell you, before you sign anything, what you will pay.
What has changed in the Balearic Islands.
Since 2025, inheritances between close relatives have a 100 % relief on inheritance tax. The same applies to succession agreements.
Gifts between the same relatives have, since 25 July 2025, a 100 % deduction on gift tax.
Close relatives means children and grandchildren, spouses or registered partners, and parents and grandparents.
Zero tax does not mean nothing to do.
The tax return still has to be filed, and on time: for an inheritance, within six months of the death.
And there are conditions. With property, for example, the declared value matters.
A mistake in the form can cost you the relief. That is why it pays to get it right from the start.
If you live outside Spain.
In Spain, inheritance tax is paid by each heir, not by the estate.
Heirs who live abroad can, in most cases, apply the same Balearic rules as residents, when the deceased lived in the Balearic Islands or the property is here. We check which rules apply to you.
You will also need a Spanish tax identification number (NIE) to accept the inheritance and register the property.
The other taxes nobody mentions.
- —The municipal capital gains tax (plusvalía), charged by the town hall when a property changes hands.
- —With a gift, the income tax of the person giving it, if the asset is worth more today than when it was bought.
- —And, later on, the tax due when the inherited property is sold.
How we help.
- —We gather the documents and calculate the taxes before you accept the inheritance or sign the gift.
- —We file the returns on time.
- —We coordinate the steps with the notary.
- —If you are thinking about the future of your assets in Mallorca, we plan with you the best way to pass them on.
Frequently asked questions
Do I pay inheritance tax in the Balearic Islands if I inherit from my parents?
I live abroad. Do the Balearic rules apply to me?
How long do I have to file?
What about brothers, sisters, nephews or nieces?
Let's talk.
Call us or write to us and we will reply within 24 hours.
Monday to Thursday 8:00-16:00, Friday 8:00-14:00.