06 · What to Expect When You Resell — Taxes on Disposal
*When the day comes that you sell your Mallorca property again, the notary appointment alone won't decide your margin. Two issues move real money: the municipal "plusvalía" and the Constitutional Court ruling STC 182/2021. This chapter looks at it from your perspective as a buyer — what you'll be facing on a later sale, and where you can claw money back.*
Plusvalía municipal (IIVTNU) — the municipal land-value-gain tax#
Behind the acronym sits the Impuesto sobre el Incremento de Valor de los Terrenos de Naturaleza Urbana (tax on the increase in the value of urban land). What's taxed here is only the increase in value of the (urban) land — not the building. It falls due, among other events, on a sale (and is borne by the seller), as well as on inheritance and gift.
For you as a buyer this is, at first, a seller's obligation. But it becomes practically relevant at the latest when you yourself become the seller — or when you take on a property through an inheritance.
⚖️ STC 182/2021 — the old calculation method was unconstitutional ✅#
With STC 182/2021 of 26.10.2021 (Tribunal Constitucional; BOE-A-2021-19511) ✅ the Constitutional Court struck down the objective calculation method under Art. 107 TRLHL and declared it void. The immediate consequence was a legal vacuum.
How we got there: Even before this, STC 59/2017 (BOE-A-2017-6855) and STC 26/2017 ✅ had set down a clear principle — without a real increase in value, no tax may arise.
The fix: Real Decreto-ley 26/2021 ✅#
The legislator closed the gap with RDL 26/2021 of 8.11.2021 ✅. Since then you may choose between two methods:
- (a) objective — using new, annually updated coefficients, or
- (b) real increase in value — i.e. sale price minus purchase price.
The key sentence for your calculation: No increase in value ⇒ no tax.
Clawing money back: reclaiming overpaid tax#
- STC 182/2021 (FJ 6): Anyone who had not challenged a
liquidación(tax assessment issued by the authority) orautoliquidación(self-assessment) as of the cut-off date of 26.10.2021 is treated as having a final, binding assessment — that one is, in principle, settled. - STS 339/2024 of 28.02.2024 🟡: But this is precisely where a door opens. If a sale was made without any increase in value, the plusvalía paid can be reclaimed even where the assessment had become final, via the
revisión de oficio(own-motion review by the authority) under Art. 217 LGT.
Practical note for you: On a loss or break-even sale, always have it professionally checked whether any plusvalía is owed at all — or whether tax already paid can be recovered. For self-assessments a four-year time limit runs, which you should not let lapse.
Ganancia patrimonial (capital gain on disposal) — IRNR#
You work out the taxable gain like this: sale price − (purchase price + acquisition costs + value-enhancing investments). So whatever you document cleanly at the purchase and on renovations later reduces your tax burden.
The tax rate is 19 % — and it's the same for all non-residents, whether from inside the EU or outside makes no difference. The return runs through the Modelo 210 (non-resident income tax form), to be filed within 4 months of the sale.
The 3 % retention (retención) — Modelo 211 ✅#
This is where you, as the buyer, come directly into play. If a non-resident sells you a property, you as the buyer withhold 3 % of the purchase price and remit this amount to the AEAT (the Spanish tax authority) via the Modelo 211 within 1 month of the deed. In economic terms it's a prepayment against the seller's IRNR (non-resident income tax) liability. If their actual tax turns out lower, they get the difference refunded.
This is your obligation as the buyer — if you fail in it, you are liable. In practice the amount is simply deducted from the purchase price. There is one exception: if the seller produces a Spanish tax-residency certificate from the AEAT, the retention falls away entirely.
Digging deeper: the two plusvalía calculation methods#
Since RDL 26/2021 the taxpayer may opt for the cheaper of the two variants:
- Objective:
valor catastral(cadastral value) of the land × statutory coefficient (depending on the years held) × municipal rate. *Worked example:* land value 55.000 € × 0,21 (9 years) = 11.550 € × 29 % = 3.349,50 €. - Real: (sale price − purchase price) × the land's share of the
valor catastral× rate.
Which method is cheaper depends on the individual case — which is exactly why this comparison belongs in expert hands before anything is paid.
What's special in Palma 🟡#
- The rate in Palma is 30 % — that's the state-level maximum. A reduction from 25 % to 18 % is being discussed politically, 🟡 but is not yet in force. So plan with the rate that currently applies.
- Inheritance bonificación
vivienda habitual(primary-residence relief): For descendants or spouses with 30 months of residence there is a relief graduated by land value — ≤ 100.000 € → 95 %, up to 125.000 € → 75 %, up to 150.000 € → 50 %, up to 200.000 € → 25 %. 🔴 Careful: other municipalities each have their own Ordenanzas (local tax bylaws) — you have to check these separately; Palma's figures do not automatically apply there.
❓ FAQ#
Do I have to pay the plusvalía when I sell on Mallorca if I sell at a loss? No. Since STC 182/2021 / RDL 26/2021, no plusvalía arises where there is no real increase in value. If you paid it wrongly, you may be able to reclaim the money under certain conditions.
What is the 3 % retention on a sale by a foreign owner? The buyer withholds 3 % of the purchase price (Modelo 211) — as a prepayment against the non-resident seller's IRNR.
Sources (selection)#
- STC 182/2021 (BOE-A-2021-19511), STC 59/2017 (BOE-A-2017-6855), STS 339/2024 → Ch. 23
- RDL 26/2021 · AEAT Modelo 210/211