Mallorca is a paradise basking in luxury which not be to everyone´s taste, but anyone who chooses to investment on the island, can do so without too many bureaucratic barriers. You can’t put a price on enjoying its climate, landscapes and its culture. Are you considering living on this Mediterranean gem located to the east of Spain Mainland? To do so you must keep in mind certain fiscal requirements in order to avoid hurdles and reaching your dream of living on the most beautiful island of the Balearics. Joins us; Frank Heinsbroek Real Estate Boutique will help you throughout the entire process.
The first thing you should know when planning your new life in Mallorca is that, as in any similar situation, the laws and tax regulations in Spain are different to those of your country of origin. In Spain you are considered a resident if you spend more than 183 days a year living in the country or if your business or family are located there. Otherwise, you will not be considered a resident and the tax regulations will affect you differently. But supposing you want to invest on the island, locate your economic headquarters there, or live there with your family, we will be explaining what the role of a Spanish resident is. Read carefully!
It is now a reality: You have made that step to invest in your Mallorcan lifestyle. Now you are a Spanish resident and declare your Worldwide income in Spain. Every Autonomous Community in Spain has its regional rates, which are combined with state rates on a progressive scale that taxes general income. In the Balearic Islands, taxes range between 19 and 44 %. You should also know that capital gains will also be gradually taxed at 15.5%, 21.5% and 23.5%.
Continuing with the taxes applied to Spanish residents, there is also an annual wealth tax, through which the value of assets is taxed throughout the world. The tax is applied progressively to Balearic Island residents and is up to 2.5%. As well as these returns, you must also make use of the income Model 720 to declare your assets abroad worth more than 50,000€.
We understand that all this information can be a little confusing at the start, but without it you may have a few surprises. Which is why, when you buy a luxury property for sale in Mallorca, we strongly recommend the assistance of our real estate agents. Frank Heinsbroek Real Estate Boutique will be at your side from the moment you start your search for a home until you have the keys in your hand. Contact our experts, you won’t regret it. It’s time to live in paradise.