Wealth Tax & Solidarity Tax on Mallorca
*If you are buying in the premium segment, this chapter matters: the Balearics are one of the more buyer-friendly regions in Spain when it comes to wealth tax — yet for genuinely large fortunes the central state still steps in through its own "wealth tax on the rich". Understanding this early lets you structure the purchase correctly from the start.*
Impuesto sobre el Patrimonio — the annual wealth tax#
Wealth tax (Impuesto sobre el Patrimonio) is charged every year on your net assets. For you as a non-resident, the good news is this: only assets located in Spain are taxed — in practice, that means primarily your property on Mallorca. It is declared via Modelo 714.
What matters in the Balearics: the high tax-free allowance#
🟡 With effect from 1 January 2024, the Balearics raised the personal tax-free allowance (mínimo exento) from €700,000 to €3,000,000. Up to that threshold, no regional wealth tax is due. For a primary residence, there is an additional exemption of up to €300,000. Above the threshold, the Balearic tariff runs from roughly 0.20 % to roughly 3.5 %.
What this means in practice — when you actually have to file a declaration:
- A filing obligation arises as soon as tax is genuinely payable, or
- when the gross value of your assets and rights exceeds €2,000,000 — and that applies
regardless of whether any tax ends up being owed.
Impuesto temporal de Solidaridad de las Grandes Fortunas (ITSGF)#
Sitting above the regional level is a state-level solidarity tax on large fortunes (Modelo 718). It was introduced in 2023 and, in 2025, extended indefinitely. It applies from a net wealth of €3,000,000; once the €700,000 allowance is factored in, the actual liability effectively begins at around €4 million.
The purpose of this tax explains why it remains relevant for you as a large buyer even though the Balearics are so generous: it is designed to prevent the high Balearic allowances from completely dissolving the taxation of very large fortunes. Where the region does not collect, the state does. Here too the rule holds: non-residents are assessed on their Spanish-situated assets.
🟡 What is currently in motion (2025/2026)#
The legal position is shifting — and in your favour:
- The Tribunal Supremo (Supreme Court), in its rulings of 29 October and 3 November 2025,
extended the wealth-tax "shield" (escudo fiscal / límite conjunto, the combined-liability cap) to non-residents as well.
- A TEAC decision of 24 September 2025 opens up the possibility for non-EU residents to elect
the regional rules.
The bottom line: a substantive improvement from 2026 onwards — although the precise implementation practice of the AEAT (the Spanish tax authority) is not yet final. So plan with professional advice, not with assumptions. 🟡
❓ Frequently asked#
As a foreign buyer on Mallorca, do I have to pay wealth tax?
Only assets located in Spain are caught. In the Balearics you are protected here by a high allowance of €3 million per person. Only above that — and, in parallel, from €3 million upwards under the state solidarity tax — can any tax liability arise at all.
Sources (selection)#
- ATIB / Iberley (mínimo exento Baleares €3 million) · AEAT Modelo 714/718
- Cuatrecasas / Martínez-Cardós (TS rulings 2025, escudo fiscal) — status 🟡