Wealth tax in Spain is a regional competence. Spain's 17 different autonomous regions can set their own exemptions, deductions and rates. The wealth tax exemption in the Balearic Islands (Ibizia, Mallorca, Menorca, Formentera) will now be increased to 3,000,000 euros.
Learn more about wealth tax in Spain here.
General wealth tax regime
If you are a resident of the Balearic Islands, there was an exemption in wealth tax of 700,000 euros per person. This exemption has now been increased to net assets of €3,000,000 per person.
As a non-resident of Spain, you have a choice between the Balearic Islands regime (if you own a property there, for example) or the national non-resident regime. In the national regime, there is an exemption of €700,000 per person. If you have net assets of less than 3,000,000 euros in Spain, the Balearic Islands regime becomes more interesting as you will not pay wealth tax.
Here you will find more information on taxes when buying a property in the Balearic Islands.
Solidarity tax
In addition to wealth tax, there is since 2022 also a 'temporary' solidarity tax for large wealth. In practice, it is an additional wealth tax for net assets higher than €3,000,000. This tax also applies to non-residents in Spain and is offset against the regional wealth tax.
Do you have any questions about buying property in Ibiza or Mallorca? Then feel free to contact with us.
