Gift Tax in Mallorca

How much gift tax do you pay in the Balearic Islands?

Anyone who gives their child a flat on Mallorca during their lifetime generally pays nothing since 25 July 2025 — but still has to declare the tax. For Groups I and II, i.e. children, grandchildren, spouses and parents, Balearic law deducts 100% of the calculated tax again. Siblings, uncles, aunts, nieces and nephews still have to pay, but receive 60% waived; for relatives by marriage in the same group it is 35%. Distant relatives and non-relatives get nothing. The calculator above walks through the whole chain: from the value of the gift, through the tariff and the multiplier, to the amount that ultimately goes to the ATIB — the Agència Tributària de les Illes Balears, the Balearic tax administration.

The order matters: the tax first arises in full, and is only waived afterwards. That's why the calculator shows both amounts separately. Anyone who only knows the final figure cannot assess what happens if one of the conditions below no longer applies.

How it's calculated: the five stages of Spanish gift tax

Spanish inheritance and gift tax (Impuesto sobre Sucesiones y Donaciones, ISD for short) is not calculated using a single rate applied to the value of the gift, but in stages. Each has its own technical term, and each can shift the result considerably. The calculator shows them individually, in exactly this order:

1. Base imponible (taxable base): the value of what this particular recipient receives. For a property, at least the Valor de referencia — the official reference value from the land registry, below which taxation is not permitted.
2. Reducciones (deductions from the taxable base): unlike with inheritance, there is no tax-free allowance based on kinship for gifts. There are only special reductions for a child's first own home, for business assets, for agricultural land and for cultural property, each tied to strict conditions.
3. Cuota íntegra (tax before the multiplier): this is where the tariff of Art. 51 applies, a scale from 7.65% to 34%. It applies equally to all kinship groups — the favourable special tariff for Groups I and II only exists for inheritance, not for gifts.
4. Cuota íntegra corregida (tax after the multiplier): the tax is multiplied by a factor that depends on the degree of kinship and on the Patrimonio preexistente — the recipient's own assets before the gift. For Groups I and II, the factor at the lowest asset level is one, so it changes nothing; for distant relatives it almost doubles the tax. The thresholds start at €400,000 in own assets.
5. Deducción (deduction from the tax) and Cuota a ingresar: finally, Balearic law deducts the tax relief. What remains is the amount that actually has to be paid.

Below the result, the calculator works through three typical cases in full — the same gift to a child, to a sibling, and to a relative by marriage. The three cards show how far the relationship group pulls the burden apart, even though the tax rate is the same in all three cases.

The most important misconception: there is no separate gift tax rate

Many summaries state that on the Balearics a separate, lower tax rate applies to gifts to the closest family. This is inaccurate in two ways. Firstly, it is not a tax rate but the factor of a deduction formula: enough is subtracted from the calculated tax so that exactly 7% of the taxable base remains. And secondly, this formula only applies to Groups I and II — and since 25 July 2025 only as a fallback rule.

It kicks in when the escritura pública — the notarial deed — states a value for a property that exceeds the reference value by more than one fifth. Anyone who meets this condition gets the full deduction and pays nothing; anyone who misses it falls back on the formula. For all other groups there is no fallback: they lose their deduction entirely. In the calculator, this is the question about the value stated in the deed — set it to "No" once, and the difference becomes immediately visible.

A detail that looks like a calculation error but isn't: because the formula fixes the remainder as a share of the taxable base, the multiplier cancels out completely. A recipient with substantial prior wealth pays the same amount in the fallback case as one without.

Which law applies if everyone involved lives in Germany?

For real estate, only its location decides. For a finca on Mallorca, Balearic law therefore applies — even if the donor and recipient are resident in Germany. Non-residents derive this entitlement from the second additional provision of the national law, which was inserted following a ruling by the European Court of Justice. For everything else — money, accounts, securities — what matters is the habitual residence of the recipient, not that of the donor. If the child lives in Hamburg and receives money, Balearic law does not apply. The calculator asks about both of these first and does not calculate further if a different region has jurisdiction.

Applicable law and the competent authority are two separate questions here, and this is exactly where a mistake often appears in summaries. If the recipient is not resident in Spain, the tax revenue is not ceded to the Balearics: the return goes to the national tax administration (AEAT), not to the ATIB — meaning the national filing deadline applies instead of the Balearic one. Balearic law, with its deductions, is nevertheless applied. For a child living in Germany who is given a flat on Mallorca, this means: the same amount of tax, but a different tax office and a different deadline. The calculator states both as soon as you enter the recipient's place of residence.

Special cases that shift the amount

• Multiple gifts from the same donor: Gifts made within three years to the same person are aggregated for the purpose of determining the average rate, as are gifts made within four years preceding an inheritance. This increases the tax on the later transfer. The calculator models a single gift.
• Child's first own home: If a child is given a property that becomes their first main residence, or money expressly for its purchase, the law provides for its own reduction. It depends on a value limit for the home, the deadline for the purchase, and the definition of main residence under income tax law. Anyone claiming it enters the amount in the calculator's field for reductions.
• Business, agricultural land, cultural assets: For business assets, company shares, agricultural land and cultural assets, there are further reductions with holding periods. These also belong in the same field.
• The donor may end up paying more than the recipient: Anyone who gives away a property must pay tax in Spain on the increase in value since the purchase under their own income tax — the Ganancia patrimonial. The deduction under gift tax does not change this. For a finca that has increased in value over decades, this burden is regularly the larger of the two.
• Plusvalía municipal: In addition, the municipal capital gains tax on land applies. In the case of a gift, it is charged to the recipient.
• The inheritance agreement as an alternative: The Pacto sucesorio, a special feature of Balearic civil law, transfers assets during the donor's lifetime but is treated for tax purposes as an acquisition upon death. It avoids income tax for the transferor and is often the better route for properties with a high latent gain.
• Usufruct and split ownership: If only the bare ownership is transferred and the usufruct is retained, separate valuation rules apply. The calculator models the full transfer.

Deadlines and forms

The tax arises on the day of the notarial deed. Self-assessment is always done via Modelo 651, the gift tax form. If the ATIB collects the tax, it is due one month later; those who file and pay electronically get ten additional calendar days. Unlike with inheritance, there is no extension. If, on the other hand, the state administration is responsible — because the recipient is not resident in Spain — the state deadline of thirty working days runs from the day after the deed. The calculator deliberately does not state a date for this case: working days depend on the Spanish public holiday calendar, and a filing deadline is the one figure on this page that is allowed to be approximate. And the deduction expressly does not exempt anyone from filing: even those who ultimately pay nothing must file on time. Enter the date of the deed in the calculator, and it will tell you the deadline that applies to you.

Legal basis and status

Articles 51, 52 and 54 of the Decreto Legislativo 1/2014, the Balearic law on ceded taxes, as amended by Ley 6/2025 of 23 July 2025, are decisive. The competence of the Balearics follows from Art. 32 of Ley 22/2009; the right of non-residents to Balearic law is governed by the second additional provision of Ley 29/1987. The filing deadline is set out in Art. 90.2 of Decreto Legislativo 1/2014. Which legal status the calculation is based on and from which sources each figure derives is stated below the calculator — both come from this page's fact register and not from the running text.

Frequently asked questions about gift tax in the Balearics

Related calculators and articles

• Calculate inheritance tax in Mallorca — the same tax, but in the event of death: different allowances, a different rate and different multipliers.
• Inheritance and gifting of property in the Balearics — the overview of both routes, with the underlying civil-law questions.
• Pacto Sucesorio Balear — the succession agreement that allows the transferor to avoid income tax.
• Valor de Referencia — the official value on which the condition for the deduction depends.
• Plusvalía Municipal — the municipal tax that is additionally due upon the gift.