The recent reform of the 2025 General State Budget Law has turned the Balearic Islands, and especially Mallorca, into one of Spain’s most attractive tax destinations for the management of inheritances and donations. This new framework benefits not only residents but also non-residents with assets on the island or abroad.
At Resitax, as a law firm specialized in taxation in Mallorca, we analyze these changes in detail so you can understand how to optimize your wealth.
Inheritances and Donations in the Balearic Islands: A Unique Tax Framework
Mallorca as a Tax-Friendly Destination in 2025
The Balearic archipelago has taken a decisive step in tax matters. Thanks to the reform, Mallorca is now consolidated as a strategic hub for estate planning, combining legal security with significant tax benefits.
Key Changes in the General State Budget Law
The new regulation reinforces the inheritance tax exemption and extends the benefits to lifetime donations. This opens a wide range of opportunities for families, entrepreneurs, and individuals with international assets.
Tax Benefits for Inheritances in Mallorca
100% Exemption for Immediate Family Members
For inheritances between parents, children, spouses, and ascendants, the 100% exemption in the Inheritance Tax remains in force. This means that the transfer of wealth between direct relatives can take place without any tax burden in the Balearic Islands, as detailed by the Tax Agency of the Balearic Islands.
Advantages of Balearic Succession Pacts
Succession pacts, a traditional legal instrument of Balearic civil law, gain even more relevance under this reform. They allow families to plan inheritance during their lifetime with full legal certainty and without fiscal costs.
Lifetime Donations: Major Benefits for Residents and Non-Residents
100% Exemption for Donations Between Immediate Relatives
The main novelty in 2025 is the extension of the 100% exemption in the Gift Tax. Donating a property, a family business, or other assets during one’s lifetime is now as tax-advantageous as passing them on through inheritance.
Simplified Asset Transfer in Mallorca
With this reform, families can plan the transfer of assets during their lifetime, avoiding potential disputes in the future and making the most of tax benefits.
Benefits for Other Family Relationships
Siblings, Uncles, and Nephews: 60% Reduction
The law is not limited to immediate relatives. Siblings, uncles, and nephews now enjoy a 60% exemption, making wealth transfers within the extended family much more favorable.
In-Laws, Sons-in-Law, and Daughters-in-Law: 35% Reduction
Affinity relatives also benefit: in-laws, sons-in-law, and daughters-in-law are granted a 35% deduction, which significantly reduces the tax burden of donations or inheritances.
International Tax Planning: Balearic Islands as a Global Reference
Benefits for Non-Residents in Inheritances and Donations
One of the most innovative aspects of this law is that non-residents can also benefit from these exemptions. Whether inheriting or donating assets in Mallorca, they enjoy the same conditions as residents.
Assets Located Abroad: Practical Application
The reform even applies to assets located outside Spain. This makes the Balearic Islands an ideal jurisdiction for international families with diversified properties and investments.
Resitax, Your Trusted Law Firm in Mallorca
Tax Advice on Inheritances and Donations
At Resitax, we have years of experience assisting families, entrepreneurs, and individuals in managing inheritances and donations in Mallorca. We are fully familiar with Balearic tax law and provide tailored advice that ensures legal security and tax optimization.
Wealth Optimization with Legal Certainty
Our team of tax experts thoroughly analyzes each case, adapting estate planning to the client’s unique needs. Our mission is clear: to protect your assets and ensure they are transferred in the most efficient way possible.
