Significant changes to wealth tax in Mallorca in 2024

Today we bring exciting news for those looking to buy a property in Mallorca, thanks to the recent wealth tax changes approved by the Balearic government in 2024.

The wealth tax, which is ceded by the state to the Autonomous Community, is levied on the net assets of private individuals in Mallorca at the end of each year. Previously, the tax base was reduced by 700,000 euros as a minimum tax-free amount. However, thanks to Law 12/2023, this minimum allowance has been increased to an impressive 3,000,000 euros from January 1, 2024. This change is excellent news for anyone dreaming of buying a property in Majorcan paradise.

The publication of the Balearic Islands Tax Agency (www.atib.es) states: "Taxpayers are obliged to file a tax return if the tax liability, determined in accordance with the legal provisions of the tax and after applying the corresponding deductions or allowances, is payable, or if this circumstance does not occur but the value of the assets or rights, determined in accordance with the legal provisions of the tax, exceeds 2,000,000 euros. The regulation applicable to the Autonomous Community provides that taxpayers with a personal contribution obligation who have their habitual residence in the Balearic Islands will be taxed according to the following formula for the taxable events of wealth tax that occur from December 31, 2015.

Before we look at the scale, let's see who the taxpayers are and what that means: 

Taxpayers" are those who are responsible for paying the tax. There are two main categories:

(a) Personal obligation (residents in Spain): Those who have their habitual residence in Spanish territory must pay the tax on all their net assets, regardless of where their assets are located.

b) Real obligation (non-residents in Spain): Persons who do not have a habitual residence in Spain but have assets or rights in Spanish territory.

The rate applicable in the Balearic Islands for personally liable taxpayers is shown below:

The wealth tax in Mallorca in a simple presentation:

Up to 170,472.04 euros: 0.28%.

From 170,472.04 to 340,937.04 euros: 0.41%.

From 340,937.04 to 681,869.75 euros: 0.69%.

From 681,869.75 to 1,336,739.51 euros: 1.24%.

From 1,336,739.51 to 2,727,479.00 euros: 1.79%.

From 2,727,479.00 to 5,454,958.00 euros: 2.35% From 5,454,958.00 euros: 2.35%.

From 5,454,958.00 euros to 10,909,951.99 euros: 2.90%.

More than 10,909,951.99 euros: 3.45%.

Taking the above into account, we would first have to add up all our assets and rights. Since the minimum tax-free amount is 3,000,000 euros, we calculate the taxable base by subtracting the 3,000,000 euros of the tax-free amount from the net assets. The various tax rates after brackets are applied to this net tax base and then the corresponding allowances or reductions are applied.

With regard to the submission of tax returns, taxpayers resident in the Balearic Islands must comply with their obligations in the place, manner and within the deadline set by the Ministry of Finance. On the other hand, taxpayers who are not resident in the Balearic Islands and taxpayers who are actually liable must comply with the guidelines issued by the Ministry of Finance and the public administrations.

These new tax regulations in Mallorca for 2024 present a unique opportunity for those looking to purchase a property in this Mediterranean paradise. At One-Mallorca, we are here to guide you through these exciting changes and ensure you make the most of the tax benefits that this new scenario brings. So don't miss the opportunity to invest in Mallorca and enjoy a successful 2024!

Stay up to date with the latest news and developments in the exciting world of real estate in Mallorca by subscribing to our newsletter! Discover the latest trends, legislative changes and unique opportunities straight to your inbox.

If you are thinking of buying or selling a property in Mallorca, don't hesitate to contact us today. Our team of experts is ready to give you personalized advice to help you achieve your real estate goals and make your real estate experience in Mallorca a real success! Subscribe and contact us now.

Disclaimer:

All information contained in this article has been obtained from external sources, including the official website of the Balearic Islands Tax Authority (ATIB) at www.atib.es. One-Mallorca.com accepts no responsibility for the accuracy, completeness or timeliness of the information provided and we recommend checking tax details directly with official sources or consulting professional tax advisors.