🌅 Foreigners Often Inherit Property in Mallorca — But Local Rules Apply
Palma de Mallorca and the broader Balearic Islands are popular among international property owners. If you’re a foreigner inheriting property or assets in Mallorca, you’re subject to a mix of Spanish national law and Balearic regional tax rules — even if you live outside Spain.
This guide explains how inheritance works for foreigners in Mallorca, including tax duties, timelines, and legal steps.
📜 Spanish Inheritance Law vs. Balearic Regional Rules
Foreigners who inherit in Spain face two main legal frameworks:
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Spanish inheritance law, which includes forced heirship unless a foreign will states otherwise
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Regional tax laws, which in Mallorca are governed by the Balearic Islands’ tax authority
💡 Foreigners can elect to apply the inheritance law of their nationality if stated in the will. This avoids forced heirship restrictions.
🧾 Inheritance Tax in Mallorca – Balearic Reductions
Foreigners inheriting property in the Balearics must file Impuesto sobre Sucesiones, but generous deductions apply for close relatives.
Key Allowances for Groups I & II:
| Heir Type | Tax-Free Allowance | Final Tax Rate |
|---|---|---|
| Spouse / Child | €25,000–€50,000 | 1% to 20% (progressive) |
| Under 21 | Bonus allowances up to €50,000 more | |
| Disability (physical or mental) | Up to €275,000 | Additional deductions apply |
✅ These apply even to foreign heirs, as long as the deceased or property is located in the Balearic Islands.
🧾 Filing the Tax: Modelo 650
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Must be submitted within 6 months of death
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Extension can be requested within 5 months
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Filed at the Agencia Tributaria de les Illes Balears
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You must submit the full value of assets (property, bank accounts, shares)
🏛️ Inheritance Process in Palma de Mallorca
Step 1: 📄 Gather Documents
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Death certificate (apostilled + Spanish translation)
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Will (Spanish or translated foreign will)
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NIE for each heir
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Property deeds + land registry extract
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Proof of relationship to the deceased
Step 2: 🧾 File the Inheritance Tax Return
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Pay or claim reduction
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Include valuation of assets and property in Palma
Step 3: 🖋️ Sign Inheritance Deed at a Notary
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Escritura de Aceptación de Herencia
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Done in person or via Power of Attorney
Step 4: 🏠 Register Property and Pay Local Taxes
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Register deed at Registro de la Propiedad
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Update land registry (Catastro)
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Pay Plusvalía Municipal to Palma city council
❌ Foreigners Should Avoid These Inheritance Errors
| Mistake | Risk |
|---|---|
| Not electing national inheritance law | Spanish forced heirship may apply |
| Missing the 6-month tax deadline | Penalties and interest |
| Not using POA when abroad | You’ll need to travel for notary, tax, etc. |
| Not translating the will | Spanish authorities will not accept it |
| Ignoring Plusvalía Municipal | Title transfer will be blocked |
⚖️ Legal Help for Inheriting in Mallorca
Our multilingual inheritance team:
✅ Drafts and validates Spanish or foreign wills
✅ Files inheritance tax in the Balearics
✅ Handles all documents, valuations, and notary work
✅ Registers the property and pays local taxes
✅ Represents you via Power of Attorney from abroad
📞 Inheriting Property in Palma de Mallorca?
Mallorca’s property market is complex — but our legal experts make your inheritance simple. From wills and tax to deeds and registration, we take care of everything while you stay abroad.
👉 Contact our inheritance lawyers in Palma today for a full-service solution.