Selling a property in Mallorca in 2026 involves a series of tax, legal and administrative steps that many sellers underestimate. Beyond price negotiation and the notary appointment, the seller must calculate and declare several taxes, obtain specific documents and, in some cases, manage the 3% withholding of the sale price by the buyer. Failing to plan these aspects in advance can result in unexpected costs or tax compliance issues that are best avoided.
Taxes paid by the seller in Mallorca
A seller in Mallorca is subject to two main taxes: Personal Income Tax (IRPF, for Spanish tax residents) or Non-Resident Income Tax (IRNR, for non-residents), which apply to the capital gain derived from the sale; and the municipal capital gains tax (plusvalía municipal or IIVTNU), which applies to the increase in urban land value during the period of ownership. Both taxes must be settled within different deadlines and through separate procedures. VAT, by contrast, is paid by the buyer on new-build purchases from developers, while Transfer Tax (ITP) applies to second-hand sales between private parties.
1. Personal Income Tax (IRPF) for Spanish tax residents
The capital gain for IRPF purposes is calculated as the difference between the transfer value (sale price minus inherent selling costs: agency fees, notary costs borne by the seller, municipal capital gains tax) and the acquisition value (original purchase price plus costs paid at the time: ITP or VAT/stamp duty, notary, land registry, and documented capital improvements). The resulting gain is included in the savings tax base and taxed at the following rates in 2026: 19% on the first €6,000; 21% from €6,001 to €50,000; 23% from €50,001 to €200,000; 27% from €200,001 to €300,000; and 28% above €300,000. Key exemptions: if the property is the seller's primary residence (vivienda habitual) and the entire proceeds are reinvested in a new primary residence within two years, the gain is fully exempt. If the seller is over 65 and selling their primary residence, the gain is entirely exempt with no reinvestment requirement.
2. Non-Resident Income Tax (IRNR) for non-resident sellers
Sellers who are not Spanish tax residents are taxed on the capital gain under the Non-Resident Income Tax (IRNR). The applicable rate is 19% for residents in the European Union or European Economic Area, and 24% for residents in third countries outside the EEA. The gain is calculated in the same way as for IRPF. The key difference is the 3% withholding: the buyer is legally required to retain 3% of the sale price and pay it to the AEAT within one month using Modelo 211. This retention serves as a payment on account of the seller's IRNR liability. The seller must then file Modelo 210 (the non-resident tax return) within three months of the sale. If the 3% retention exceeds the actual tax due, the seller is entitled to claim a refund of the excess; if the retention falls short, the seller must pay the difference.
| Item | Spanish tax resident | Non-resident (EU/EEA) | Non-resident (outside EU) |
|---|---|---|---|
| Applicable tax | IRPF (savings base) | IRNR | IRNR |
| Tax rate | 19%–28% (bands) | 19% on gain | 24% on gain |
| Buyer withholding | Not applicable | 3% of sale price | 3% of sale price |
| Filing deadline | Annual IRPF (April–June) | 3 months from sale | 3 months from sale |
| Primary residence exemption | Yes, with conditions | Not applicable | Not applicable |
3. Municipal Capital Gains Tax (plusvalía municipal / IIVTNU)
The municipal capital gains tax is a local tax collected by the local authority on the increase in urban land value during the period of ownership. In 2026, sellers can choose between the objective method (based on coefficients approved by Ministerial Order) and the real method (based on the actual land value increase), opting for whichever is more favourable. In the Palma City Council area, the maximum applicable rate is 30% on the taxable base. The deadline for settlement is 30 business days from the signing of the title deed. This topic is covered in detail in our dedicated guide on municipal capital gains tax in Mallorca, where you will find calculation examples and the scenarios in which the liability can be zero.
Documents required to sell a property in Mallorca
- Original purchase deed or an up-to-date nota simple from the Land Registry
- Most recent IBI (Property Tax) receipt showing payment is up to date
- Certificate from the owners' community confirming no outstanding service charges
- Valid energy performance certificate (mandatory since 2013 for all sales)
- Certificate of habitability (cédula de idoneidad in the Balearic Islands) where applicable
- Valid Spanish national ID (DNI) or Foreigner's Identity Number (NIE) of the seller
- Outstanding mortgage balance certificate if the property is mortgaged
- Recent utility bills (water, electricity, gas) to facilitate transfer of accounts
The sale process step by step
- Step 1 — Valuation and pricing strategy: set a realistic price based on genuine comparable sales in the Mallorca market, not on online portals that mix different qualities and locations
- Step 2 — Pre-sale due diligence: before marketing, verify that all documentation is complete and that there are no unexpected encumbrances that could delay or derail the sale
- Step 3 — Deposit contract (arras): negotiate and sign a deposit agreement. The choice between penitential and confirmatory arras matters: penitential arras allow the seller to retain double the deposit if the buyer defaults
- Step 4 — Notary preparation: the notary needs several days to prepare the deed. The seller must coordinate with the mortgage lender (if applicable) for simultaneous cancellation at the notary
- Step 5 — Signing at the notary: execution of the public title deed. Keys are handed over and payment of the price is made at the same time (typically by banker's draft or SWIFT bank transfer)
- Step 6 — Tax settlement: within 30 business days of signing, the seller must settle the municipal capital gains tax. IRPF/IRNR is declared within the stated deadlines
Tax planning before signing: key points to avoid overpaying
The most important message of this guide is that tax planning must take place before signing the deed, not after. Once the escritura is executed, the tax liability is fixed and the options for optimisation are very limited. Before signing, it is essential to review: (1) whether improvements made to the property — new kitchen, bathrooms, windows, installations — are backed by receipts that can increase the acquisition value and reduce the taxable gain; (2) whether all acquisition costs from the original purchase are properly documented; (3) for sellers over 65, whether the conditions for the primary residence exemption are met; (4) for non-residents, whether the 3% withholding will be sufficient or whether a refund or additional payment is expected; (5) whether the timing of signing can be structured to be most tax-efficient relative to the end of the fiscal year.
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Leer más →Frequently asked questions about selling a property in Mallorca
How long does it take to sell a property in Mallorca in 2026?
In the current Mallorca market (2026), a property priced correctly for its market segment typically takes two to four months from listing to signing. The period between signing the deposit contract (arras) and the final notary deed is typically six to ten weeks, though it can extend if the buyer requires mortgage financing (banks may take four to eight weeks to formalise the mortgage). Luxury properties — above €1.5 million — may take six to twelve months to find the right buyer, given the lower volume of demand in that segment.
I am a non-resident selling my property in Mallorca. When do I get the 3% back if a refund is due?
The buyer must pay the 3% of the sale price to AEAT within one month of the signing date using Modelo 211. The non-resident seller must then file Modelo 210 (the IRNR return) within three months of the deed date. If the effective tax calculation shows a liability below the 3% retained, the seller is entitled to a refund of the difference. AEAT typically takes between six and eighteen months to process these refunds, which are made by bank transfer to the account specified in Modelo 210. It is important to have an active Spanish bank account or to appoint a tax representative in Spain to receive the refund without complications.
Can I sell if the mortgage has not been paid off?
Yes, this is a very common situation. The mortgage is cancelled at the same notary appointment as the sale: the buyer's payment is applied first to settle the outstanding mortgage balance, with the remainder going to the seller. To do this, the seller's bank must issue an outstanding debt certificate and send a representative to the notary to sign the formal cancellation of the mortgage charge in the same act. The seller must coordinate with their bank well in advance — at least two weeks before the signing date — to avoid any last-minute delays.
