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:
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)
✔ Value Added Tax (VAT / IVA)
✔ Transfer Tax (Impuesto sobre Transmisiones Patrimoniales)
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)
✔ 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
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.
What does it mean to be a tax resident in Spain and what is the difference with being a non-resident?
In order to understand which are the taxes you will end up paying, this is the first question you must answer. Are you a tax resident or not?
Finding the answer is simple: if you spend more than 183 days per year in Spain, you will be regarded as a tax resident. And the consequences are many; as both the taxes and the percentages to be paid will vary.
For example, individuals who are not considered as tax residents must pay non-resident tax, something that residents don’t. Other differences arise in regards to the liabilities. In that sense, when it comes to the income tax, for example, tax residents must pay for their worldwide income; whereas non-residents justs for the income they receive in Spain.
Which are the taxes paid in Spain by a company?
Basically, there are three taxes that any company must pay.
- First of all, we find the corporate tax (impuesto de sociedades). It is a flat rate equal to 23/25% applied to the profit the business made.
- The property transfer tax. a progressive tax, is applied to the different operations that take place during the life of a given company, like a merger or an acquisition.
- Finally, the VAT. Any company that sells goods or services is obliged to pay 21% from the selling price, something that is charged to the client but then collected and returned to the tax authorities in Spain.
Which taxes should I pay in Spain as an expat?
If you are considered a tax resident in Spain, there are 4 main taxes you will need to pay as an individual:
The income tax or IRPF. This tax is applied to any income you obtain worldwide. It is a progressive tax which exact percentage depends on each Autonomous Community. It can start from around 19% and reach up to 48%, depending on the exact amount of your earnings.
If you own a property which value is higher than 700.000€, you will need to pay between 0,2% to 2,5% in regards to the wealth tax.
If you obtain a gain from the sale of a property any other asset like shares of a company, you will need to pay for the capital gains tax.
Finally, the inheritance tax, which is applied whenever you inherit any given asset.
How does the Spanish tax year work? When does it start and when does it end?
This is something that won’t cause you any headache: the Spanish tax year coincides with the calendar year. This means that it starts on January the 1st and finished on the 31st of December.
As for the income tax return, you should file it during May and June for the previous year.
Do I need to file an income tax return?
As you may know, the income tax requires you to file on a yearly basis a declaration in which you state the income you have obtained throughout the year.
But should you really file the return? The answer is it depends. If you are a tax resident and earn more than 22.000€ per year, yes, you should. Tax residents don’t have this legal obligation.
What is the Beckham law? How can I benefit from it?
The Beckham Law is a special tax regime that allows resident taxpayers in Spain to be taxed at a much lower rate, acquiring a non-resident status.
Instead of paying progressive taxes for your income that can reach up to 48%, you will just be taxed at a flat rate of 24% for the first 600.00€ of income.
