OTHER COSTS AND TAXES
Concerning water and electricity it is important to ensure that the new owner of the property is registered with the utility companies. Spanish utilities can be in case of unpaid bills very strict.
Mallorca has a wide range of property management companies offering full services.
Besides telephone, water, heating and electricity costs you will also have to pay the following charges:
IBI (Impuesto Bienes Inmuebles) an annual property tax levied by the local town hall. The charge can vary and is fixed by the local community.
Refuse collection (Basura) is also a locally fixed charge.
Community fees are charged to properties in a development with shared facilities like lighting, maintenance, security, cleaners etc.
Property Owners Income Tax (Impuesto Sobre la Renta) is a tax which is based on an imaginary rental income. The tax base is 2% of the cadastral value or 1.1 % if the cadastral value has been revised since 1.1.1994. The tax rate on that theoretical income is 24%. If this property is your only home (you also would have to be registered as a tax resident in Spain) you will be exempt.
Regarding all tax and inheritance implications of owning a property in Spain we strongly recommend you to take the advice from a professional advisor, who will study your individual case and will advise you according to your particular situation.
C/Cabo Blanco,km 6,3 local19
Centro Commercial Maioris
Illes Balears , 07600 , Spain
Av. Juan Miro, 336 Izq
Palma de Mallorca - Mallorca
Illes Balears , 07012 , Spain
C/Mestres D´Aixa,3 ,
Illes Balears , 07015 , Spain