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Second-home tax after moving to Mallorca

Responsible for this content: Frank Menze

Anyone who relocates their centre of life to Mallorca and keeps the flat in Germany sooner or later faces the same question: does the second-home tax of their old home municipality now apply? The honest answer is neither "yes, always" nor "no, never" — it depends on how the specific municipal statute defines a second home. In this guide you'll learn about the two opposing, equally legally permissible statute models, understand why German registration law falls short precisely in the case of a single remaining domestic property, and find out what to look out for when reading your own statute. Explicitly not covered here are Spanish taxes on the Mallorca property itself — separate rules apply for that, which we link to.

Second-home tax after moving to Mallorca

Are you unsure whether your German municipality is still entitled to tax you after you've moved away?

Second-home tax in Germany vs. Spanish taxes on Mallorca: two separate worlds

The second-home tax is a municipal German expenditure tax on a property in Germany that is held in addition to a main residence for personal living needs. It has nothing to do with the Spanish charges that may arise on your property in Mallorca — such as the property tax IBI, the Balearic wealth tax, or the Spanish tax for non-residents. These two levels are often confused in practice, but they are completely independent of one another: you can be liable for second-home tax in Germany and simultaneously pay non-resident tax in Spain, or one without the other, depending on your circumstances.

If you want to know what awaits you on the Spanish side, you'll find that in the relevant specialist articles — here we are dealing exclusively with the German municipality and its statute.

Level Responsible authority Applies to Further reading
Second-home tax German municipality (statute) Property in Germany this article
Non-resident tax (IRNR) Spanish tax authority Mallorca property without residencia Non-resident tax Spain
Wealth tax Balearics ATIB / Balearic tax administration Assets above the allowance, including property Wealth tax Spain
Tax residence AEAT (Spanish tax administration) Days of stay, 183-day rule Spanish tax residency

The decisive question: what does your municipality's bylaw actually say?

There is no nationwide second-home tax law. The second-home tax (Zweitwohnungsteuer) is a local expenditure tax under Art. 105 para. 2a of the Grundgesetz (Basic Law), levied by each municipality on the basis of its own bylaw and the respective municipal charges law (Kommunalabgabengesetz) of its federal state. Hamburg is a special case with its own state law. In practice, this means: two municipalities can treat exactly the same emigrant scenario — a retained flat in Germany, centre of life in Mallorca — completely differently, and both are legally correct.

There are two documented, opposing bylaw models. Which one applies to you is determined solely by the wording of your specific municipality's bylaw.

Bylaw model Connecting factor Consequence for emigrants with one flat in Germany Case law
Model A "Secondary residence within the meaning of registration law" No tax, since no secondary residence arises under registration law BVerfG 1 BvR 529/09 (17.02.2010)
Model B "Additional dwelling alongside the main residence", without domestic connection Tax possible, even with main residence abroad VG Augsburg Au 2 K 22.1620 (19.10.2023)

Note: There is no list of which municipality follows which model — such lists would become outdated immediately and are not officially maintained anywhere. The only reliable approach is to read the tax subject matter of your municipality's bylaw yourself, or have the municipality's tax department confirm which definition of "dwelling" applies.

Model A: The bylaw ties in to registration law — in this case, the tax does not apply

German registration law recognises main and secondary residences only between multiple dwellings within Germany. Literally, from § 21 Bundesmeldegesetz (Federal Registration Act):

"If a resident has several dwellings within Germany, one of these dwellings is their main residence. […] A secondary residence is any further dwelling of the resident within Germany."

Anyone who, after moving to Mallorca, retains only one dwelling in Germany has, under registration law, no "further dwelling within Germany" — and therefore the criterion for a secondary residence is not met. § 21 para. 4 sentence 3 BMG explicitly refers to this case as the "sole dwelling".

The Federal Constitutional Court examined precisely this consequence and declared it constitutional (BVerfG, decision of the 1st Chamber of the First Senate of 17.02.2010, 1 BvR 529/09, a case concerning a second-home tax in Aachen). The Karlsruhe judges expressly justify the differing treatment compared to persons with a secondary residence within Germany on the grounds that a sole residence in Germany cannot constitute a secondary residence under registration law, because national registration law does not apply to dwellings located abroad.

That a municipality may make its tax liability dependent on registration-law declarations at all has been confirmed by the Federal Administrative Court (BVerwG, judgment of 17.09.2008, 9 C 17.07): the body issuing the statute is entitled to do so in the interest of administrative simplification. Federal law is only violated once it is proven that demonstrably incorrect registration circumstances have been relied upon.

Model B: The statute defines the second home independently — in which case tax is possible

However, a second-home tax statute does not have to adhere to registration-law terminology. The Augsburg Administrative Court expressly confirmed this (VG Augsburg, judgment of 19.10.2023, Au 2 K 22.1620):

"Although, under registration law, only dwellings within the country can qualify as main and secondary residences, a second-home tax statute is not bound by the registration-law definitions and may also cover main residences abroad."

According to the same judgment, it is also not decisive how often the dwelling is actually used — the mere possibility of personal use is sufficient. So if a statute is worded generally, such as "anyone who, in addition to their main residence, holds a further dwelling for personal living needs", without expressly restricting this secondary dwelling to the country, the municipality can levy the tax even where the main residence is on Mallorca.

Note: Both models are covered by case law — Model A through the Federal Constitutional Court, Model B so far through lower-court case law. Anyone claiming as a blanket rule that the second-home tax always ceases upon moving away is just as wrong as someone who assumes a blanket obligation. What counts is the wording of the respective statute.

What the tax actually covers: the expenditure-tax concept

Legally, the second-home tax is an expenditure tax within the meaning of Art. 105 Abs. 2a GG. The Federal Administrative Court summarises this, referring to the Federal Constitutional Court, as follows (BVerwG, judgment of 17.09.2008, 9 C 14.07, with reference to BVerfG, decision of 06.12.1983, 2 BvR 1275/79, BVerfGE 65, 325):

"Holding a further dwelling for personal living needs (second home) in addition to the main residence constitutes a particular expenditure […]"

Two points relevant to emigrants follow from this principle:

  • Pure capital investment without personal use: A dwelling that is permanently let to third parties and is not available to the owner for their own living needs generally does not meet the criteria of an expenditure tax — it does not serve personal living needs. This is a consequence of the tax subject-matter itself, not a planning recommendation.
  • No "secured" primary residence required: The expenditure tax does not require legally secured power of disposal over a primary residence. The idea that "I only have a rented flat on Mallorca, so that doesn't count as a main residence" does not hold up legally.

Registration law on moving away: the most common misconception

Many emigrants believe that when moving abroad you have to "deregister completely" in Germany. That is wrong when stated so broadly. What matters is § 17 Abs. 2 Bundesmeldegesetz:

"Anyone who moves out of a dwelling and does not take up a new dwelling within Germany must deregister with the registration authority within two weeks of moving out. Deregistration is possible no earlier than one week before moving out […]"

The obligation to deregister is tied to the moving out of a dwelling — not to moving abroad as such. Anyone who keeps their German dwelling does not move out of it, so no deregistration obligation arises for that dwelling. Anyone who gives it up, however, must deregister within the deadline.

For married couples or registered civil partners who are not permanently separated, § 22 BMG additionally stipulates that the main residence is the dwelling predominantly used by the family; in doubtful cases, the centre of personal and family ties is decisive (§ 22 Abs. 3 BMG).

Provision Content Source
§ 21 BMG Main/secondary residence only applies between multiple dwellings within Germany gesetze-im-internet.de
§ 17 Abs. 2 BMG Deregistration within 2 weeks of moving out, no earlier than 1 week beforehand gesetze-im-internet.de
§ 22 Abs. 3 BMG In case of doubt: the centre of personal and family ties is decisive gesetze-im-internet.de

Note: Whether keeping the German dwelling triggers unlimited income tax liability in Germany (§ 8 Abgabenordnung, definition of residence) is an entirely different question that is not examined here. It has nothing to do with the second-home tax and should be clarified separately with a competent professional — for example with the support of a tax advisor with expat experience.

The sole authority responsible for the assessment is the tax department of the respective municipality, not the Finanzamt and not the Spanish tax administration. The legal basis is the municipal statute in conjunction with the Kommunalabgabengesetz (Municipal Charges Act) of the respective federal state.

Against a second-home tax notice, the administrative legal route is available — objection or action before the competent administrative court, not the fiscal court route. Which deadline applies in a specific case follows solely from the notice of legal remedies (Rechtsbehelfsbelehrung) in the respective notice; a blanket deadline cannot be seriously stated here, as it varies depending on the federal state and type of notice.

  1. Read the notice carefully, in particular the reference to the underlying statutory provision.
  2. Obtain the complete statute text of the municipality (usually available online via the municipality's website) and compare the tax object with Model A or B.
  3. If in doubt, ask the municipality's tax department in writing which definition of dwelling was applied.
  4. Note the deadlines from the notice of legal remedies and adhere to them before you respond.
  5. For complex cases, seek expert advice — for example via a Gestoría in Spain for the Spanish side or a tax firm in Germany for the German side.

Most common mistakes when dealing with the second-home tax

  • Blanket assumption "I've deregistered, so everything is automatically waived": Deregistration only applies to flats that you have actually moved out of. Anyone who keeps the flat does not deregister for it — and this is exactly the point where Model A and Model B apply differently.
  • Confusion with Spanish taxes: Second-home tax and non-resident tax or wealth tax on the Mallorca property are separate systems with different authorities.
  • Relying on other expats' experiences: Since the rule is set out in each municipality's own bylaws, the experience of an acquaintance from another municipality is not transferable.
  • Arrangements to "avoid" the tax without legal review: Formal avoidance schemes are risky and are deliberately not recommended here — the legal position can only be properly assessed based on the actual facts and the specific bylaws.
  • Ignoring the deadlines in the notice of legal remedies: Anyone wishing to challenge a tax assessment must adhere to the deadline stated therein, not to blanket assumptions found online.

What comes next?

Once you know which bylaw model applies to your municipality, there are two possible paths: either the municipality confirms that, under registration law, there is no secondary residence and therefore no second-home tax applies (Model A), or it issues an assessment based on its own independent definition (Model B). In the second case, it's worth examining the specific tax base in the bylaws — this varies greatly from municipality to municipality and is deliberately not given here in figures, as it is regularly adjusted. At the same time, you shouldn't lose sight of the Spanish side: if you permanently relocate your tax residence to Mallorca, separate reporting obligations apply there, for example in connection with the exit tax and the declaration of foreign assets.

Checklist: Checking the second-home tax after moving to Mallorca

Step Question Record the result
1 Do I still have one or more flats in Germany? yes/no
2 Did I deregister the flat I gave up within the deadline (§ 17 BMG)? yes/no, date
3 What does the tax object clause in my municipality's bylaws say – Model A or B? Note down the quote
4 Is the flat permanently rented out to third parties, or is it available for my own use? rented/self-used
5 Has a notice already been issued, and what does the appeal instructions section say? Note down the deadline
6 Have I separately checked the Spanish side (IBI, non-resident tax)? yes/no

Conclusion

The second-home tax after moving to Mallorca is not an automatic outcome in either direction. It hinges on a single point: the exact wording of your German home municipality's statute. If the statute ties into the registration-law concept of a secondary residence, the tax generally ceases to apply once only one domestic residence remains — this has been expressly confirmed by the Bundesverfassungsgericht (Federal Constitutional Court). If, on the other hand, the statute defines the second home independently, the municipality can still levy the tax even where the main residence is on Mallorca, as shown by the Verwaltungsgericht Augsburg. Read the statute, clearly distinguish between the German second-home tax and Spanish property taxes, and seek targeted expert advice where anything is unclear rather than relying on anecdotal reports.

Official sources

Do I automatically have to pay second-home tax in Germany after moving to Mallorca?
No, that depends on the exact wording of your German municipality's statute. If it is linked to registration law, the tax generally does not apply if only one remaining domestic home is kept; if it defines the second home independently, it can also apply even if the main residence is abroad.
What happens if I give up my German home completely when I move?
Then, under § 17 Abs. 2 BMG, you must deregister within two weeks of moving out, at the earliest one week beforehand. Since no home remains, no second-home tax liability arises in Germany for it.
Does German registration law also apply to my home on Mallorca?
No. The Bundesmeldegesetz distinguishes between main and secondary residence only among multiple homes within Germany; a home abroad does not fall under this.
Can my municipality demand second-home tax even though I have no secondary residence under registration law?
Yes, if the statute defines the term second home independently and does not tie it to registration law. The Verwaltungsgericht Augsburg expressly confirmed this in 2023.
Does keeping my German home automatically trigger unlimited tax liability in Germany?
That is a separate question concerning the concept of residence under § 8 Abgabenordnung and is not covered here. It has nothing to do with the municipal second-home tax and should be clarified separately.
Does second-home tax apply if I permanently rent out my German home?
A home that is permanently rented out to third parties and is not available to the owner for personal use generally does not meet the criteria for an expenditure tax, as it does not serve personal living needs.
How can I challenge a second-home tax assessment notice?
The legal route leads to the Verwaltungsgericht (administrative court), not the tax office. The applicable deadline for an objection or lawsuit is stated in the notice of legal remedies (Rechtsbehelfsbelehrung) of the respective assessment.
Is there a nationwide uniform law on second-home tax?
No. It is a municipal expenditure tax under Art. 105 Abs. 2a GG, regulated by the respective municipal statute and the Kommunalabgabengesetz of the federal state. Hamburg, as a special case, has its own state law.