Spanish Tax for Expats in Mallorca — Balearic ITP, Tourist Rentals & Non-Resident Tax 2026

The Balearic Islands have the highest ITP rates in Spain, governed by Llei 22/2006 CAIB (updated 2023): 8% on the first €400,000; 9% on €400,001–€600,000; 10% on €600,001–€1,000,000; 11% on €1,000,001–€2,000,000; 12% on €2,000,001–€3,000,000; 13% above €3,000,000. New builds are subject to 10% VAT + 1.5% AJD (Actos Jurídicos Documentados).

The Impost sobre Estades Turístiques a les Illes Balears (IMAS, Llei 2/2016) taxes tourist accommodation stays at rates of €0.25–€4 per night, varying by accommodation type, star rating and month. The eco-tax is collected from the tourist by the accommodation provider and remitted quarterly to the ATIB (Agència Tributària de les Illes Balears). It is not a property ownership tax, but is mandatory for all legally registered tourist rental operators.

Only with a valid Vivienda Turística de Vacaciones (VTV) licence under Decret 6/2017 (updated). Crucially, tourist rental licences in Mallorca are CAPPED per zone (plazas turísticas). In many prime coastal areas, licences are suspended or no new licences are being granted. The Consell de Mallorca coordinates zone allocations. Existing licences can be transferred with the property on sale — these have significant commercial value and should be verified by your lawyer.

Non-EU residents (including UK nationals post-Brexit) pay IRNR at 24% on GROSS rental income — no expense deductions. EU/EEA residents pay 19% and can deduct directly related expenses. File quarterly via Modelo 210 (periods ending in January, April, July, October). If the property is vacant and not rented, imputed income applies: 1.1% of cadastral value × 24%, filed annually.

Llei 22/2006 CAIB provides Balearic-specific ISD reductions. For Groups I/II (direct family): a base reduction of €25,000 plus additional amounts based on relationship. This is less generous than the Andalusia or Madrid 99% reduction. Since the 2015 reform (RDL 17/2015 implementing ECJ C-127/12), non-EU heirs including UK nationals post-Brexit can apply the Balearic regional reductions. File Modelo 650 with the ATIB, within 6 months of death.

You have two annual obligations. First, file Modelo 210 (imputed income) between 1 January and 31 December of the year following accrual. The taxable base is 1.1% of cadastral value (or 2% if the cadastral value was not revised since before 1 January 1994). Tax rate: 24% (non-EU). Second, you owe IBI (Impuesto sobre Bienes Inmuebles, municipal property tax) to the Ajuntament de Palma or relevant municipality — this bill is sent directly to the registered property address annually.