Expert Tax Advisors in Mallorca
Tailored tax advice for individuals, companies and property owners in the Balearic Islands
At Castell.law, our expert tax advisors provide comprehensive guidance on Spanish tax obligations for residents, non-residents, expatriates, and companies operating or investing in Mallorca, Ibiza, and the rest of the Balearic Islands.
Whether you’re purchasing a property, relocating, investing, or launching a business, our team ensures your financial affairs are structured legally and tax-efficiently in Spain.
Contact our tax department: mar@castellabogados.com · +34 680 464 800
We speak English, Spanish, and German.
Best Tax Advisor in Majorca & Balearic Islands
Why choose Castell.law as your tax advisor in Mallorca and Ibiza?
- Over 30 years of experience in Spanish and international tax law
- Full legal and tax support under one roof
- Strategic advice for residents, non-residents, and expatriates
- Fluent assistance in English, Spanish and German
- Local knowledge with international expertise
Spanish Tax Residency: What You Need to Know
Understanding whether you are a tax resident or non-resident is the first step in determining your tax obligations in Spain.
You are considered a tax resident in Spain if:
You spend more than 183 days per year in the country.
Your main economic interests or center of activities is based in Spain.
Key differences:
| Criteria | Tax Residents | Non-Residents |
|---|---|---|
| Income Tax | Taxed on worldwide income | Taxed only on Spanish-sourced income |
| Wealth Tax | Applies to global assets | Applies only to assets in Spain |
| Annual Declaration | Mandatory if earning > €22,000/year | Mandatory for specific income types |
| Property Tax | Subject to imputed income tax | Subject to Non-Resident Income Tax (NRIT) |
Taxes for Companies in Spain
If you operate a business or own a company in Spain, you will be subject to the following:
Corporate Income Tax (Impuesto de Sociedades)
Flat rate of 23/25% on annual profits.
Value Added Tax (VAT / IVA)
Standard rate of 21% on goods and services, collected from clients and submitted to Spanish tax authorities.
Transfer Tax (Impuesto sobre Transmisiones Patrimoniales)
Progressive tax applicable on certain transactions like company acquisitions or asset transfers.
We help businesses comply with all tax regulations while identifying legal opportunities for tax optimization.
Taxes for Expats in Spain
If you are an expatriate or foreign resident in Spain, these are the main taxes that may apply to you:
Income Tax (IRPF)
Progressive rates varying by region.
In the Balearic Islands, personal income tax can range from 19% to 48%, depending on income level.
Wealth Tax (Impuesto sobre el Patrimonio)
Applies if your net assets exceed €700,000 (after allowances).
Rates range between 0.2% and 2.5%.
Capital Gains Tax
Applies to gains from property sales, shares, or other assets.
Rates range from 19% to 28% depending on the gain.
Inheritance and Gift Tax
Varies by region and relationship to the deceased or donor.
Castell.law offers estate planning strategies to reduce exposure.
Tax Calendar: When to File in Spain
The Spanish tax year runs from January 1 to December 31.
Income tax returns are filed between May and June for the previous year.
Other tax obligations, such as VAT and corporate tax, follow quarterly and annual reporting cycles.
We ensure your filings are accurate and submitted on time, avoiding penalties.
Do You Need to File a Tax Return?
You must file a Spanish income tax return if:
You are a tax resident and earn more than €22,000/year from a single payer.
You have multiple sources of income.
You receive capital gains, rental income, or foreign income subject to reporting.
The Beckham Law: Tax Benefits for New Residents
The Beckham Law (Regimen fiscal aplicable a los trabajadores desplazados a territorio español) is a special tax regime for foreigners moving to Spain for work.
Qualifies you as a non-resident for tax purposes, even if living in Spain.
Flat tax rate of 24% for the first €600,000 of income.
Available for up to six years.
We advise executives, digital nomads, and remote workers on how to apply for and benefit from this regime.
Local Presence Across Mallorca
Our firm assists clients across all municipalities, including: Palma, Calvià, Andratx, Llucmajor, Inca, Manacor, Pollença, Sóller, Santanyí, Marratxí, and many more. Wherever you are based, we offer the same high-quality tax and legal support.
Contact Castell.law for Expert Tax Advice
Whether you are relocating, investing, or managing a business in Spain, Castell.law is your trusted tax advisor in Mallorca and Ibiza. We simplify complex tax obligations and help you plan efficiently.
See all the municipalities we cover in Mallorca.
