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Selling, Gifting & Inheriting Property in Palma – What Foreigners Need to Know

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Selling, Gifting & Inheriting Property in Palma – What Foreigners Need to Know

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What to Know About Selling, Inheriting, or Gifting Property in Palma

If you’re a foreigner who owns real estate in Palma de Mallorca, understanding how to sell, transfer, or pass on your property is essential.

You may face:

  • Spanish taxes on the sale

  • Gift tax if transferring to family

  • Inheritance procedures for non-resident heirs

  • Risks if you don’t formalize these actions properly

💰 Selling Property in Palma de Mallorca

✅ Steps to Sell:

  1. Hire a lawyer to review ownership/title

  2. Sign a reservation or arras contract with the buyer

  3. Sign the deed of sale (escritura de compraventa) before a notary

  4. Pay applicable taxes and fees

  5. Remove your name from the Land Registry and update tax records

💸 Capital Gains Tax (CGT):

Seller Residence CGT Rate
EU/EEA 19%
Non-EU 24%

  • Taxed on profit from sale

  • Deductions allowed for notary, renovation, legal costs

  • Non-residents face a 3% withholding by the buyer to cover CGT

🏙️ Plusvalía Municipal:

  • Local tax on increase in land value

  • Paid to Palma City Council

  • Based on the cadastral value increase

🎁 Gifting Property in Palma

Gifting property to a spouse, child, or third party is legal — but it must be formalized via a public deed.

🧾 Gift Tax (Impuesto de Donaciones):

  • Rates depend on relationship to recipient

  • Balearic law offers reduced rates or bonuses for close family

  • Example: Children or spouses can benefit from up to 75% tax relief

Your lawyer ensures the gift is registered, taxed correctly, and legally binding.

⚰️ Inheriting Property in Palma de Mallorca

🧑‍⚖️ Steps for Heirs:

  1. Obtain death certificate and foreign will (if applicable)

  2. Sign acceptance of inheritance deed at Spanish notary

  3. File and pay inheritance tax

  4. Update the Land Registry and tax office

📊 Inheritance Tax in the Balearics:

  • Closer relatives (Group I & II): generous deductions

  • Distant relatives and unrelated heirs: higher tax brackets

  • Non-residents can also benefit if the deceased was a Balearic resident

  • Tax must be paid within 6 months (can be extended once)

We handle all translations, legal certifications, and filings for foreign heirs.

🌍 International Legal Considerations

  • Foreign wills must be translated, apostilled, and validated under Spanish law

  • Avoid double taxation through tax treaties

  • Forced heirship rules (in some countries) may impact distributions

  • Mortgages and debts on the property must be cleared or assumed

Borderless Lawyers coordinates inheritance and gift matters across borders.

🧑‍⚖️ Why Trust Borderless Lawyers in Palma?

  • Specialists in cross-border property transfers

  • Expert tax advice for non-residents

  • Complete sale, gift, and inheritance support

  • Fast-track POA and notarial services

  • 100% bilingual legal documentation

We help you avoid delays, minimize taxes, and ensure full compliance with Balearic law.

📞 Need Help Selling or Transferring Your Property in Palma?

Let our legal team handle every step — so you don’t face unnecessary taxes or legal issues later.

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