Below you will find a brief summary of taxes that you as a non-resident will be obliged to pay to the Spanish authorities as a consequence of owning property in Spain. Some of the taxes are involved in the purchase of a property and others in the sale of the property.

Taxes when purchasing a property:

1. Transfer tax – “Impuesto sobre Transmisiones Patrimoniales” (ITP)

This is payable in situations where there is no VAT e.g when it is a resale property or a purchase of a second-hand property. The tax is due upon signing the contract of sale. As a general rule, transfer tax is 7% of the purchase price. However, many regions apply their own rate of tax.

2. Stämpelskatt (”Impuesto sobre transmisiones”)

This is a tax that you will have to pay when purchasing a newly built property, together with VAT (called IVA in Spanish). A newly built is a property that is being sold for the first time. You’d normally buy this kind of property from a developer or a bank. Stamp duty is normally 1% of the purchase price. However, it may vary in different regions.

3. Council tax – the so called IBI (Impuesto sobre Bienes Inmuebles) and basuras.

If you own a property in Spain and are living in it on 1 January in any given year, you will be liable to pay this annual local property tax. The amount is the rental value multiplied by a tax rate set by the local authorities. The valor catastral is determined according to the size, condition, location, title, lease details, cost of improvements and construction cost of the property. The cadastral value is usually much lower than the market value of the property.

There is also basuras(“recogida residuos sólidos urbanos y alcantarillado”), a rubbish and main drainage collection tax. Usually due once a year and is calculated by the local authorities as well.

4. Income and Wealth tax4

a) Income tax( IRNR “Impuesto sobre la Renta de No Residentes” ) – Individuals who own a Spanish property and have no rental income are required to submit an annual tax return, Form 210, and pay income tax based on the rateable value (“valor catastral”) of the property.
When the property is rented out, a quarterly return and tax payment must be submitted, also using Form 210.If you are a citizen of an EU country, Norway or Iceland all expenditure relating to the rental of the property are deductible for tax purposes. If you are a citizen of a non-EU country, then the full amount of income that you receive is taxable with no allowances. The current tax rate for non-residents is 19% for residents of the EU/EEA and 24% for others.

b) Wealth tax (“Patrimonio”) – Although wealth tax was abolished in Spain in 2009, it has since been reintroduced. Wealth tax in Spain is payable on the value of your assets on the 31 December each year. This is a tax on all of your assets and includes your property. If your wealth is more than €700,000 you will be liable for wealth tax of 0.2–2.5% on net assets, although variations exist within regions. It is an individual deduction.b

Taxes when selling a property:

1. Plusvalía

The “plusvalía” is a local (municipal) tax charged by the town hall on properties when they are sold, whether it is a new build or a resale. It is calculated on the rateable value of property and the number of years that have passed since the property last changed hands. The objective is to tax the increase in the value of the land on which the property stands.
The base for this tax is the “valor catastral”. The amount due in tax will depend on how long the seller has owned the property: the longer the period, the higher the amount of tax. By law, it should be paid by the vendor but is negotiable. If you (the vendor), are not resident in Spain (whatever your nationality), the buyer may insist on withholding funds to pay the plusvalía on your behalf, as the new owner would become liable for the plusvalía in the event of non-payment (i.e. if a non- resident does a runner without paying).

2. Capital Gains Tax (CGT) or “Ganancias y Pérdidas Patrimoniales”

Capital gains tax, paid on profits from selling property or other investments, is charged at a rate of 19% for non-residents. The Spanish Tax Authority withholds 3% from the sale of your property. This is taken directly from the purchaser so that you only receive 97% of the amount the property was sold for. The 3% is a safeguard so that non-residents do not ‘disappear’ before they have settled their CGT account. If more CGT is needed than is covered by the 3% then you will need to provide the extra, if not you will receive a refund. In order to collect any refund, you need to complete a form 210H. This should be submitted within three months of the sale along with the last four years of non-resident income tax. From the date that it is presented you should allow around a year to receive the refund.

3. Income & wealth tax

Bear in mind, that should you sell a property during 2019 you will need to submit your tax return for the 2019 calendar year by 30 June 2020. See more information above under Point 4.

It is possible to purchase a property via a Spanish Limited company, i.e. S.L. If this is something you are thinking of doing, it would be advisable to appoint a local lawyer to help you with the legalities. First thing you must do is obtain your identification number as a non-Spanish citizen, the so called NIE number. Read more about it in our previous blog entry ” Spanish NIE number”. The next step would be to apply for the certification of the company name. You will receive a certificate, certifying that you are the only person to own this particular company name. Once you have this document you need to open a business bank account in Spain, in the name of your new company and deposit the minimum investment amount. The minimum capital required when creating a S.L. is 3000 Euro.

When the above has been done, you need to make an appointment with a notary to set up the company and thereby determine the structure of the business and the status of the owners. The deed of incorporation (“escritura de constitución”) is the document that sets up your company and will include important information regarding your company. The notary sends the deed to the Register of Companies.

As a company is a legal person in its own right you will need a tax identification code (CIF) that is specific to it. The company registration number (CIF) provides a formal registration on the company tax system in Spain and also forms the VAT number.  With the tax ID, your Spanish company can do business anywhere in the EU.

If a property is bought via a company structure the tax authority in Spain will however assume it is being run as a business and income is being generated and assumed income liable for tax will be applicable whether an income is generated or not. You will therefore be required to file tax forms every quarter, as well as yearly tax forms. You are also required to present the accounts to the Register of Companies every year.

Mallorcaresidencia can recommend Montis Abogados.

Catany Boats is a boat club and boat sales company based in Santa Ponsa, Mallorca, with 6 motor boats to choose from. The Club offers you a hassle-free boat experience, for a year’s membership. You can choose to enjoy one boat or all 6 of the fleet’s, to pick the best suited for each day and with just a click, you can make your bookings. As a member, you just have to choose how many days a month you want to enjoy a boat and only worry about living the boating experience.

The founders of the company are English and Majorcan, lovers of the sea and of Mallorca. They love to sail along the coast enjoying the variety of landscapes that the island offers. They think that it’s a privilege to anchor in a different corner of the island each day. They founded Catany Boat Club to share that feeling with as many people as they possibly can.

Many people don’t have time to deal with all the hassle of maintenance. Some people don’t want to spend a fortune buying a boat and on top of that, an expensive mooring. For all of them, the founders have created Catany Boat Club.

Catany Boat Club invites you to enjoy Mallorca to the fullest and navigate as many days as you can and create new memories with friends and family.

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Latest properties for sale in Santa Ponsa

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Apartments and Houses for sale in Santa Ponsa

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There are many lovely beaches in Majorca to discover and worth visiting. Here below you will find a selection of some of our favourite beaches to visit.

Playa de Formentor is in the top 3 of the beaches of Europe and in the top 25 of the best sandbanks in the world. It is located in the north-eastern part of Majorca. With its about 1 kilometre long white sand beach and sparkling green-blue waters, framed by a wooded landscape and views of the Tramuntana, this is truly a paradise beach. The beach is very popular with tourists who also make their way north for the scenic views at the Cap de Formentor, the farthest point on the island that ends in a lighthouse, and from where you can see Menorca on clear days. The water is shallow and there are rarely waves here, which is nice for small children. Some areas of the beach can get rocky but otherwise it’s easily accessible. People of all ages enjoy this beach.

Cala Mondragó is a beach about 10 kilometres from Santanyí consisting of sand, stones and rock, located in the southeast of Majorca. It is framed in a wild landscape, surrounded by pine forest, with fine white sand and incredibly crystalline waters and turquoise colour. In addition, its waters are shallow which makes it an ideal place to go as a family. It was declared a natural park in 1992, protecting the area from development and mass tourism.

Playa de Muro is the largest sand beach in Majorca (covering nearly six kilometres) located on the northeast coast of the island. It has shallow clear blue water and white sand dunes. This is a popular beach for families because of its easy access, the long boardwalk with cafes, restaurants, hotels, onsite facilities, kids focused activities, shops, small parks and the exceptionally shallow waters which allow you to walk quite far before it gets deep.

This is one of the best know beaches on the island located in the south part of Majorca. The water is spectacular with its turquoise clear blue colour that is more typical of a Caribbean island. This is a beach for nature lovers who will enjoy the wild beauty and remoteness of the beach. The beach is backed up by sand dunes, some rocky outcroppings, shrubs and pine and a beautiful, 1500-hectare natural wetland with salt flats, birds and a small lake. The beach is popular for tourists and locals, and it is not uncommon to find naturists here, particularly further off from the main crowds.

Cala Varques is a 90-metres cove beach located in the southeast of the island not far away from Portocolom. With its white sand, deep blue water, surrounded by low, rocky cliffs and trees, it is popular with locals and tourists. It is a favourite beach among naturists as well but a less family-friendly beach since it does not have any restaurant facilities.

This is another small cove beach on the southwest coast of the island. It is a very calm and peaceful beach visited by both locals as well as tourists. Due to its small size, there are generally fewer crowds. There is a limited number of umbrellas and sun beds. There are toilets onsite and one large restaurant serving nice beach food.

Cala Mesquida is one of the most magical corners of Majorca, a beach of fine white sand embraced by rocks, dunes and pines creating a unique natural environment, it is one of the most beautiful beaches of the archipelago. An accessible beach, beautiful and surprising as well as comfortable, since it has good services and facilities such as sun beds, parasols and good restaurants. It is an ideal place to go as a family, although its level of occupation is usually high in high season. On the side of the beach, near the rocks, nudism is usually practiced.

To move to, or at least purchase a property in Spain, is a dream come true for many foreigners nowadays. One of the first things you would have to do is apply for a NIE number, which you will need by the time you sign the deeds before the notary. What is a NIE number then? The Spanish NIE number acts as a tax and identification number, and is used in all fiscal transactions that involve the Spanish tax office. A NIE number is mandatory for all foreigners with financial, professional or social affairs in Spain, regardless of whether they are a resident or non-resident in Spain.

How does one apply for the Spanish NIE number? There are three ways to apply for it:

1. Apply in person.

2. Apply in person via a Spanish Consulate abroad.

3. Apply through a representative in Spain.

1. Applying for a NIE number in person.

Firstly, you would have to prepare the necessary documentation:

• Two copies of the Ex-15 application form filled out and signed.
• An original document (plus a photo copy) that justifies the reason for applying for a NIE number, specifically, of the existence of economic, professional, or social interests in Spain (such as a purchase contract for property, mortgage approval etc.)
• For EU-nationals, your passport and photo copy of the main page and for Non-EU-nationals, your passport, a photo copy of your entire passport and proof of your legal entry in Spain

Secondly, you need to go in person to the appropriate place of submission, such as the immigration offices or a local police station, with all your documentation, print the form “Modelo 790 codigo 012”, pay a small tax at the nearest bank and then the application process should be completed.

Lastly, once you have applied you will be given an official receipt and told when and where to pick it up. The time it takes varies. The NIE certificate that you receive eventually is actually only valid for three months. However, the allocated NIE number is unique to you, and will be yours for life.

2. Applying for an NIE number in person via a Spanish Consulate abroad.

Preparation of the necessary documentation as described above under point 1., but the exception that the Ex-15 application form should be duly completed but NOT SIGNED as you will need to sign in the presence of a consular official.

You need to take all the documentation in person to your nearest Spanish Consulate which will forward it to the competent authority in Spain, who will then issue your NIE number. The consulate itself has no authority to issue any NIE numbers and only works as a middle hand. Therefore, once you have submitted your application with them you will have to await notification from the Spanish authorities. If all goes well you should receive your NIE number in PDF format by email within 2-3 weeks.

3. Apply through a representative in Spain

You can also authorize a third party, a legal representative, to obtain your NIE number on your behalf. There are several companies that offer this service such as “gestorías” and law firms. Once authorized they take care of the whole process for you. You will however need to provide them with the following:

• Grant them with a power of attorney (“poder”) or an authorisation form.
• Provide them with a notarised copy of your passport (“copia legalizada”) which is simple and cheap to do.

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When summer arrives, one of the best options is to approach the beach, enjoy the sun and the sea and, if possible, have a drink on the beach. Mallorca has a wide range of beach bars, the so called “chiringuitos” where you can have a snack, munch something or even enjoy haute cuisine. Here are some of our tips:

Il Chiringo

Il Chiringo, located in Palmanova and its cool chilled-out atmosphere offers very good food and an excellent service. This place gets crowded especially during weekend nights in summer when they have a DJ in place.

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Cala Sa Nau

Cala Sa Nau is the name of the beach bar located right on the soft sand of the small bay with the very same name, between Porto Colom and Cala d’Or.  On the menu, you have everything from meat dishes, fresh fish, snacks, natural juices or cocktails. At weekends, you can dance to live music or to music from the DJ.

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Roxy’s Beach Bar

Roxy’s Beach Bar, is the place to go to if want to enjoy a lovely glass of cava or a fresh “sangría”, whilst watching the beautiful marina in Puerto Portals. This is a very popular beach bar frequently visited by both locals and tourists.

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El Chiringuito

El Chiringuito is one of the most popular ‘chiringuitos’ among locals and offers amazing views over Sa Foradada and a chilled atmosphere. The sunset here is breath taking and something you must experience at least once in your life.

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Mirlinda Jonuzi

Team Assistant @ Mallorcaresidencia

Mallorcaresidencia has decided to ride the wave towards a plastic free world and have therefore joined the Cleanwave movement which aims to preserve the Mediterranean Sea and to eliminate the daily use of all plastic bottles.

Cleanwave is a dynamic movement of likeminded individuals who recognise the urgent need to provide sustainable alternatives to single use disposable plastic bottles on the Balearics and beyond. In the Balearic Islands, we consume 1.5 million plastic bottles a day.

Cleanwave believes that drinking water should be freely accessible and set out to minimize plastic waste through the sale of stainless steel bottles, sustainably sourced and produced with minimum environmental impact and easy to clean. Being one of Cleanwave’s refill stations, you can purchase the bottle with us. The Cleanwave bottle is not a once-off purchase – it is a way of life! Let us all ride the Cleanwave!

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Mirlinda Januzi

Team Assistant @ Mallorcaresidencia

Mallorca has become a paradise for any cyclist. Fundamental aspects of any cycling activity are the climate, the mountains and the good roads. The mild temperatures during the spring season attract both amateur and professional teams to prepare for the pre-season that will continue in their home country.

The areas of Playa de Palma and Alcudia have adapted the hotel offer so as to eradicate seasonality by welcoming hotels to cyclists during the winter season. Cycling competitions, triathlon, Ironman and others have caused a large influx of this type of tourism.

Cycling in Palma is a small company that offers a personal and specialized treatment for each client, it is possible to rent high-end road bicycles and make private tours from the center of the city to the outside discovering the greatness of the Sierra de Tramuntana, its picturesque villages and beautiful landscapes.

Cycling in Palma is located in the emblematic district of Santa Catalina. This privileged location also offers the possibility of choosing several routes out of the city towards the mountains. They select the most interesting bike routes for their landscape beauty, cultural interest and roads perfectly adapted to cycling.

Have a look here at a few examples of the guided bike tours Cycling in Palma offers. Their bike tours are prepared for different levels of difficulty and have distinct duration. All of them start in the city of Palma, they also deliver bikes to your place. However, they can also create a personalized tour completely adapted to your abilities, preferences. Click here for more information.

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Mirlinda Januzi

Team Assistant @ Mallorcaresidencia

What is a physiotherapist? A physiotherapist is working to assess, prevent, relieve and cure health problems. Public health, stress, sports medicine, manual medicine and orthopaedics are some important areas of expertise, but the professional role also includes assessing the patient’s injuries and abilities as part of the investigation of illness. Assessment of motor skills, strength, joint mobility and pain are some of the most common ones.

During my many years as a sportswoman, I had the luck, or perhaps the misfortune, to never go to a physiotherapist. When the body is young and strong, it feels like you can take on the whole world on your own, which you might also be able to, right then and there. However, one thinks very little about the future and that one can actually take care of their body for preventive purposes. This is something that is crystal clear to me today and therefore I give myself a “treat” at least once every two months or once a month, when I exercise harder. Now you are probably thinking, yes, but it is a time and money question also, and certainly, it is a fact. Still, is it not worth taking care of our amazing body here and now, while it is not too late and for it to never be too late? You cannot deny that it is great to have a body that is in harmony with everything you want to do, in your everyday life as well as in your exercising life? A guaranteed investment for the future!

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Fisiosan

The owner of the centre Fisiosan is the physiotherapist Vicens Marí Mayans. I first came in contact with Vicens during my years as a runner where he helped me out with some minor injuries as well as maintenance during this period of very intense training sessions. The treatments at the centre are personalized and they apply the best techniques and the most advanced technology available in the market. A fusion of technology and physiotherapy to recover and improve physical condition much faster and more effectively. Combination of personalized treatment plan with machines specifically designed for physiotherapy use, which allows more effective treatments and solutions to be implemented. Vicens used to be the head physiotherapist of the football team RCD Mallorca for more than 15 years and was also working together with Rafa Nadal Academy until recently.

Carrer de Jesús 36, Palma

fisioterapiapalma.es

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Physiotherapist Susana Casanovas – Cenfi

Susana is an excellent physiotherapist and director of the Cenfi centre but they are 5 physiotherapists in total working there. They work with manual therapy, dry puncture, therapeutic exercise, radiofrequency, hypopressive exercises, osteopathy (not Susana but her colleagues do). They also treat babies with colic, bronchiolitis, neurological physiotherapy, sports, traumatology, pelvic floor, pregnancy, postpartum etc. Susana and her colleagues master most things in the field of physiotherapy and we can warmly recommend her sports massages which are guaranteed to dissolve all possible muscle nodes and tensions.

C / Molí d’en Perot 6, Palma

susana.casanovas@gmail.com

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Physiotherapist / Osteopath Rocio

Rocio is a physiotherapist and osteopath who combines to work both in a hospital and a private practise at home. She works primarily with trauma injuries, sports injuries and in paediatrics with, for example, child colic and congenital torticollis (CMT). She is an active athlete herself and currently does cross fit, where I first met her, and works a lot with trail runners. Being an athlete herself, she can quickly relate to various sports injuries and help you with strain injuries and much more.

rociofisiopalma@gmail.com

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Mirlinda Jonuzi

Team Assistant @ Mallorcaresidencia

Santa Catalina is a trendy and popular area in central Palma with great atmosphere and a lively indoor market with fresh vegetables, meat and fish from Mallorca. The picturesque streets around the old fishing district lined with nice cafes and restaurants.

Palma has some great restaurants and Santa Catalina in particular offers some of the most modern and best restaurants. We have scaled it down to our top six restaurants in Santa Catalina. We hope you will love them as much as we do.

Kuroböta

Plaza Progreso 9

At the intriguing Kuroböta restaurant in Santa Catalina, they serve Asian fusion and unique cocktails. The restaurant opens only in the evenings from 19.30 and offers a cozy and welcoming atmosphere. The menu includes dishes such as ginger marinated tuna, dumplings with scorpion fish and grilled spicy shrimp. We recommend Kurobota for its innovative food with a mix of flavors and cocktails that are great for both a night out with friends as well as for a romantic dinner for two.

Sumaq

C/ Cotoner 44

For those of you who has not already discovered the fantastic Peruvian food, we will now recommend the really good Peruvian restaurant Sumaq under the leadership of chef Irene. Typical dishes, which we are used to seeing in the Peruvian cuisine, such as ceviches, tiraThe ditos and causas are mixed with exquisite dishes such as Australian lamb steak and pisco flamed octopus. My personal recommendation is “lomo saltado” in the company of a pisco sour.

Naan Street Food

Calle Caro 16

Naan offers a complete range of street food from all over the world. The fish tacos are lovely, the Japanese ramen soup with pork, algae and miso is filling and tasty. They offer all dishes in two varieties depending on whether you want to share or not. An excellent choice if you want to try several dishes from different parts of the world in the middle of Palma, without having to travel far.

Duke

Calle Soler 36

We can’t help but to mention Duke. Not just for the fantastic food but also for the nice atmosphere and excellent service. Duke was founded 10 years ago by a surfer and a chef who both are truly passionate about the food they serve. Here they offer their favorite dishes from different parts of the world and many of the dishes are adapted for vegans and gluten and lactose intolerant. Don’t miss their lunch menu which varies daily but is always delicious! My recommendation on the menu is their Thai salad with duck, vegan tacos and their delicious burgers!

Vandal

Plaza Progreso 15

At the popular Vandal restaurant in Santa Catalina you are reminded already in the door of their provocative attitude in form of a graffiti-painted facade. On their menu different flavors and aromas meet in different consistencies. Here you experience fusion at its best, with dishes from Asia and South America mixed with the European cuisine. We recommend sharing the dishes to try as many as possible. Some of our favorites are the marinated mackerel which is served with mayonnaise of pine nuts and sorbet of ponzu, ceviche with coconut foam and charcoal grilled Black Angus.

Wasabi

Calle Sant Magin 55

At Wasabi, in my opinion, they serve the best sushi in Palma. The service is always excellent and the ingredients fresh. This is the original restaurant but there are now a number of more restaurants both in Palma and in the rest of the country. Daytime they serve an affordable lunch menu. On the normal menu we highly recommended the tempura rolls, especially the Tuna Poki Maki of tuna, absolutely wonderful. The seaweedsalad, Osaka and Spicy Tuna rolls and gyosas should also be tested. Wasabi is the Japanese restaurant that never fails.

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Latest properties for sale in Santa Catalina

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Apartments and Houses for sale in Santa Catalina

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Johanna Andersson

Team Assistant @ Mallorcaresidencia