14 · Your Passport Shapes the Deal: Military Permit, Visas & the Tax Chain
*Not every rule lands the same way on every buyer. Whether you need a military purchase permit, which residency options survive the end of the Golden Visa, and how heavy your tax burden turns out to be all hinge directly on your passport and your country of tax residence. This chapter sorts out what actually applies to DACH (German/Austrian), UK, US and Swiss buyers.*
Military Permit (Autorización militar — military purchase authorisation) — Ley 8/1975 ✅#
If you buy rural land (suelo rústico — rustic/non-developable land) as a non-EU / non-EEA citizen in a "zona de acceso restringido a la propiedad" (restricted-access property zone), a special rule kicks in: you need an authorisation from the Ministry of Defence. The legal basis is Ley 8/1975 and its implementing regulation RD 689/1978. The point that matters most to you as a Mallorca buyer — the islands as a whole count as exactly this kind of zone.
- Who it hits: among others, US Americans and Britons (since Brexit), plus other
third-country nationals.
- How it runs: the application must be filed before completion of the purchase, and you
should plan for processing of ~4–6 months (often longer). Without the permit, the notary appointment cannot go ahead — so it is a genuine showstopper in your timeline.
- Urban properties — flats or villas on
suelo urbano(urban/developable land) — are
generally exempt.
- 🔎 Watch the asymmetry: Switzerland is EXEMPT from the Military Permit, because
Ley 31/1990 puts CH, Norway and Iceland on an equal footing — even though Switzerland is still treated as non-EU for tax purposes (24 % IRNR).
From a buyer's perspective: if you are a US, UK or other third-country buyer eyeing a finca, apply for the permit as early as possible and write the processing period into the arras (deposit/earnest-money) contract as a right-to-withdraw or extension clause. Otherwise you carry the timing risk on your own.
Visas & Residency#
- Golden Visa: abolished as of 3 April 2025. Buying a property therefore no longer
earns you any residence permit.
- Brexit/UK: Britons now count as third-country nationals. The 90/180-day Schengen rule
applies to them, the purchase confers no right of residence, an NIE (foreigner's tax identification number) is still required regardless, and for fincas the Military Permit applies on top.
- Residency routes for non-EU citizens: the candidates are the Non-Lucrative Visa
(passive income, ~€2,400/month = 400 % IPREM) and the Digital Nomad Visa (~€2,760–2,850/month). In both cases you need full health insurance with no copago (co-payment) (→ Ch. 19).
- Beckham Law for new arrivals (24 % flat rate) → Ch. 18.
The Decisive Tax Lever: 19 % vs. 24 % IRNR ✅#
✅ confirmed four times over — which IRNR rate falls on rental or deemed (imputed) income depends solely on your country of tax residence:
| Status | IRNR rate | Cost deduction |
|---|---|---|
| EU/EEA resident (DE, AT, NL, SE, FR …) | 19 % | yes (net) |
| Non-EU resident (UK, USA, Switzerland) | 24 % | historically no (gross) |
🟡 In flux: Spanish court rulings from 2025 (Audiencia Nacional, 28.07.2025) could open up the cost deduction for non-EU residents in future — but that changes nothing about the 24 % rate. On the capital gain from a sale, 19 % applies to all non-residents anyway.
Tax Chain by Country of Origin — at a Glance#
| Country | EU? | IRNR rental | Home-country method / specifics | Military Permit |
|---|---|---|---|---|
| DE 🇩🇪 | yes | 19 % | DBA 2011 (double-taxation treaty): credit method (§34c EStG); no inheritance treaty → §21 ErbStG | no |
| UK 🇬🇧 | no | 24 % | treaty still applies; SA106; post-Brexit 24 % | yes |
| USA 🇺🇸 | no | 24 % | worldwide income; FBAR (>$10k), FATCA Form 8938; FTC Form 1116; Estate: Form 706-CE | yes |
| NL 🇳🇱 | yes | 19 % | exemption with progression; Box-3 interaction | no |
| SE 🇸🇪 | yes | 19 % | credit method; no Swedish wealth tax | no |
| FR 🇫🇷 | yes | 19 % | DBA 1995; IFI from €1.3 million worldwide | no |
| CH 🇨🇭 | no (tax) | 24 % | DBA 1966; CH exempts the property | no (exception!) |
- Gifts & inheritance: there is no inheritance-tax treaty between either DE↔ES or USA↔ES. So a
double-taxation risk remains, mitigated at least via §21 ErbStG (DE) or the Foreign Death Tax Credit (US). → Ch. 08.
- Modelo 720 (declaration of overseas assets) is relevant exclusively for Spanish residents —
as a non-resident owner it does not concern you.
Going Deeper#
Military Permit — Procedure & Common Misconceptions#
- Jurisdiction: up to 2,000 m² the regional military authority (
Subdelegación de Defensa)
may decide; above that, the Ministerio de Defensa. The application includes a passport, a criminal-record certificate and a site plan (≥ 1/500) showing the distance from the coast. In practice this takes ~6–8 months. 🔴 A specific fee is unsubstantiated.
- The 15 % rule (Art. 18 Ley 8/1975): ✅ contrary to what is often claimed, this is not
about "a maximum of 15 % foreigners per person". It means that the total area in foreign hands must not exceed 15 % of the zone's surface area.
- An SL does NOT get you around the permit ✅ (a myth): if a Spanish SL (sociedad limitada —
limited company) is held under more than 50 % non-EU control, the authorisation requirement still applies on a look-through basis.
- No automatic nullity (DGSJFP 15.12.2023): the authorisation can be obtained after the fact;
nulidad (nullity) only arises if registration does not take place within 18 months. 🟡
- The
urbanoexemption: it applies where the land was classified asurbano**before
14.04.1978**, or where the plan was reviewed by the Ministry of Defence. 🟡
Visa Details#
- Non-Lucrative Visa: the income requirement is 400 % IPREM ≈ €2,400/month (plus 100 % for
each dependant). Under RD 1155/2024 (in force since 20.05.2025) renewal is once again tied to more than 183 days of presence — effectively forcing tax residency. The application can only be made from your home country.
- Digital Nomad Visa: income threshold 200 % SMI (🟡 ~€2,646/month in 2025; since
5.12.2025 ~€2,763/month); no more than 20 % from Spanish sources; with the Beckham option (24 %).
- Golden Visa: abolished by Ley Orgánica 1/2025 (effective 3.4.2025). Existing visas
remain valid until they expire, and renewal proceeds under the old rules.
- Permanent residence: possible after 5 years of legal residence; arraigo (roots-based
residency, RD 1155/2024) is aimed more at those already settled.
❓ FAQ#
As a US American, do I need a military permit to buy on Mallorca? For rural land (suelo rústico), yes (Ley 8/1975); for urban flats, generally not. Because the procedure drags on for several months, the rule is: apply early.
How high is the tax on rental income for non-EU citizens (UK/US/Switzerland)? 24 % IRNR instead of the 19 % for EU citizens, historically with no cost deduction. The capital gain on a sale is taxed at 19 %.
Sources (selection)#
- Ley 8/1975 + RD 689/1978 · Ley 31/1990 (Switzerland exception) · DBA DE-ES (2011), §21/§34c (DE)
- IRS (FBAR/FATCA/706-CE) · IRNR rates (AEAT) → status ✅ / 🟡 (cost deduction in development)