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:
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Spanish taxes on the sale
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Gift tax if transferring to family
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Inheritance procedures for non-resident heirs
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Risks if you don’t formalize these actions properly
💰 Selling Property in Palma de Mallorca
✅ Steps to Sell:
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Hire a lawyer to review ownership/title
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Sign a reservation or arras contract with the buyer
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Sign the deed of sale (escritura de compraventa) before a notary
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Pay applicable taxes and fees
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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% |
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Taxed on profit from sale
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Deductions allowed for notary, renovation, legal costs
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Non-residents face a 3% withholding by the buyer to cover CGT
🏙️ Plusvalía Municipal:
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Local tax on increase in land value
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Paid to Palma City Council
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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):
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Rates depend on relationship to recipient
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Balearic law offers reduced rates or bonuses for close family
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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:
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Obtain death certificate and foreign will (if applicable)
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Sign acceptance of inheritance deed at Spanish notary
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File and pay inheritance tax
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Update the Land Registry and tax office
📊 Inheritance Tax in the Balearics:
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Closer relatives (Group I & II): generous deductions
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Distant relatives and unrelated heirs: higher tax brackets
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Non-residents can also benefit if the deceased was a Balearic resident
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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
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Foreign wills must be translated, apostilled, and validated under Spanish law
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Avoid double taxation through tax treaties
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Forced heirship rules (in some countries) may impact distributions
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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?
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Specialists in cross-border property transfers
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Expert tax advice for non-residents
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Complete sale, gift, and inheritance support
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Fast-track POA and notarial services
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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.