Your Trusted English-Speaking Tax Advisors in Mallorca
Mallorca is not just a paradise of turquoise waters and scenic mountains; it has also become Spain’s leading hotspot for international investment. In the final quarter of 2024 alone, foreign buyers represented an impressive 32.5% of all property transactions on the island, a figure that previously peaked at 35.1% in the thriving year of 2022.
Yet, beneath this appeal lies a complex web of fiscal obligations—income taxes, wealth taxes, property rental regulations, and the recently implemented “Solidarity Tax for Great Fortunes”. Navigating this terrain without experienced, English-speaking tax advisors in Mallorca can quickly turn a dream investment into an administrative nightmare.
Why Specialist Tax Advisors Are Essential in Mallorca
Spain’s tax landscape for international residents and investors is intricate and constantly evolving:
Complex non-resident income tax regulations impose a flat 24% tax (or 19% for EU/EEA residents) without personal allowances for non-EU citizens. Additionally, the Balearic Islands introduced a significant shift in 2024: increasing the local wealth tax exemption dramatically to €3 million, compared to Spain’s national exemption of just €700,000. This creates strategic planning opportunities and challenges that require precise, expert guidance.
Moreover, tourist rentals are now under stricter scrutiny than ever, with rigorous enforcement of ETV licences and zoning restrictions. Non-compliance here can quickly escalate into substantial fines and tax reassessments. Meanwhile, broader political dynamics, such as the proposed 100% property surtax on non-EU buyers, signal a tightening stance that further underscores the importance of having robust local tax advisors on your side.
As one expatriate writer aptly remarked, “navigating Spain’s tax landscape without a specialist is like sailing the Tramuntana in a dinghy.”
Key Tax Issues for Mallorca Residents and Non-Residents in 2025
In 2025, key tax considerations include:
- Non-Resident Income & Rental Tax (Modelo 210): Non-residents must declare imputed income from unused properties annually by December 31 of the following year. Additionally, from 2024 onward, all rental income must be reported between January 1–20 each year.
- Wealth and Solidarity Tax: Spain’s progressive wealth tax rates range from 0.2% to 3.5%, affecting residents and non-residents alike, with an added solidarity levy applying to net assets exceeding €3 million.
- Capital Gains & Withholding Taxes: Property sales by non-residents attract a 3% withholding tax and must be reported through Modelo 210 within four months of completion.
- Tourist Rental Licensing & Compliance: Stricter ETV licensing rules and new zoning regulations introduced between 2023 and 2024 demand meticulous compliance. Any breach can trigger substantial financial penalties and aggressive audits.
How Lullius Partners Enhances Your Tax Position
At Lullius Partners, our mission is clear: simplify your tax management and provide maximum protection from regulatory challenges. We offer:
- Integrated Legal and Tax Expertise: Our team uniquely blends Big-Four quality tax advisory with litigation prowess, ensuring that your tax strategies withstand both scrutiny and potential audits by the Spanish authorities.
- Proactive Compliance Management: Our innovative digital dashboard alerts you to upcoming tax obligations—such as Modelo 720, Modelo 210, and Modelo 714—well in advance, saving you from stressful last-minute submissions.
- Strategic Cross-Border Planning: Specialised in international taxation, we craft bespoke structures aligning Spanish tax law with beneficial treaties, addressing the unique fiscal circumstances of UK, German, and other international investors.
- Vigorous Defence Against Audits: If the Spanish tax authorities (AEAT) challenge your tax position, our seasoned tax litigation team is ready with comprehensive, precedent-backed arguments to defend your interests effectively.
Because, as the saying goes, “In theory, there’s no difference between theory and practice—but in Spanish taxation, practice always prevails.”
Lullius Partners is a boutique tax advisory and law firm based in Mallorca, specialising exclusively in international taxation, global mobility, private wealth and tax litigation. What sets us apart is our personalised approach, combining deep local expertise with international standards of excellence. Our multilingual, dedicated professionals focus entirely on delivering strategic solutions tailored specifically to expatriates, family offices, and international investors, ensuring both compliance and optimal fiscal efficiency. With a proven track record, we transform tax complexity into clarity, distinguishing us as a trusted partner on your financial journey in Mallorca.
Trust Lullius Partners, your dedicated English-speaking tax advisors in Mallorca, to expertly guide your tax strategy and safeguard your peace of mind.
