Non-resident owner
Spanish wealth tax for non-residents with property in the Balearics
Two questions are routinely confused: whether you must file, and whether you must pay. A valuable house in Mallorca can trigger the first without the second, but only if the return is filed and the right rules are elected in it. We check both, value the property correctly and file.
Is this you?
- You own property in Mallorca worth, on its own or with your Spanish bank account, more than two million euros.
- You are not sure whether the national threshold of 700,000 euros or the Balearic threshold of three million applies to you.
- You hold the property through a company and want to know whether that changes anything.
What Spanish law requires
Non-residents are taxed on a limited basis, only on assets located in Spain: the property in Mallorca, the Spanish bank account attached to it and, where applicable, shares in a company whose assets consist mainly of Spanish real estate.
A return must be filed once the value of Spanish assets exceeds two million euros, even if no tax is payable. Whether tax is due turns on the exempt threshold and the scale: nationally 700,000 euros and a scale from 0.2% to 3.5%; in the Balearic Islands a threshold of three million euros, in force since 1 January 2024, and a scale from 0.28% to 3.45%.
Non-residents may elect the rules of the region where most of their Spanish assets are located. Since Ley 11/2021 that right belongs to every non-resident, wherever resident. A British, Swiss or American owner stands where a German owner stands.
The election is made in the return itself. No return means no election, and without the election the national threshold of 700,000 euros applies. That is why the Tax Form 714 has to be filed even where the result is nil.
Property is valued at the highest of the cadastral value, the value determined by the tax authority for another tax, and the acquisition price. For property bought or inherited from 2022 onwards, the reference value set by the Cadastre (Dirección General del Catastro) enters the calculation where it served as the tax base of the purchase or inheritance. Only debts linked to the Spanish assets reduce the base: a mortgage over the house does, a personal loan at home does not.
The temporary solidarity tax on large fortunes, Tax Form 718, reaches high net wealth and applies to non-residents on their Spanish assets, crediting wealth tax already paid. A saving at regional level can be absorbed at national level, so the two have to be modelled together.
What we do
- Assessment of whether you must file and quantification of the real exposure, including valuation, ownership and each co-owner's share.
- Analysis of the election for Balearic rules and of its combined effect with the solidarity tax on large fortunes.
- Filing of the Tax Form 714 even where no tax is payable, so that the election is made and the three million threshold secured.
- Filing of the Tax Form 718 where it applies, coordinated with the Tax Form 210 for the same year so the two returns do not take inconsistent positions.
- Review of holding structures where the property is owned through a Spanish or foreign company.
What we need from you
Send these by email or through the secure link we give you after the first call. We tell you exactly what is missing.
- The purchase or inheritance deed and the IBI receipt.
- Year-end balance and fourth-quarter average balance of each Spanish bank account.
- A certificate of the outstanding mortgage as at 31 December.
- The NIE of each owner and a certificate of tax residence.
- For property held through a company: the company's latest accounts and the shareholding.
Deadlines
| Window | Filing | Who |
|---|---|---|
| April – 30 Jun | Tax Form 714, wealth tax for the previous year | Spanish assets above €2 million, or tax due |
| 1 – 31 Jul | Tax Form 718, solidarity tax on large fortunes | Net Spanish wealth above the threshold set by the State |
Frequently asked questions
I own a valuable house in Mallorca and have never filed anything. Should I have?
Quite possibly. The filing obligation arises once Spanish assets and rights exceed two million euros in value, even where no tax is due. The open years should be reviewed.
Does the three million threshold apply to a non-resident?
The right to elect Balearic rules belongs to every non-resident taxpayer, wherever resident. The election is not automatic, though: it is made in the return, so the Tax Form 714 must be filed even when nothing is payable.
What if the property is held through a foreign company?
Interposing a company does not by itself take the asset outside the charge. Shares in entities whose assets consist mainly of Spanish real estate are treated as assets located in Spain.
Is this connected to the Tax Form 210?
They are separate and compatible taxes. The same property can generate imputed income for non-resident income tax and form part of the wealth tax base in the same year.
Sources: Ley 19/1991 on wealth tax, fourth additional provision; Ley 11/2021; Balearic Decreto Legislativo 1/2014 as amended; Ley 38/2022 on the solidarity tax on large fortunes.
This page is general information and reflects the rules in force on the date shown. It is not advice and does not replace an assessment of your own case. Last reviewed: 18 September 2026.
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