The recent reform of the 2025 General State Budget Law has made the Balearic Islands, and Mallorca, one of Spain's most attractive tax destinations for managing inheritances and donations. This new legislation benefits not only residents but also non-residents with assets on the island or abroad.
At Resitax, as a firm specializing in taxation in Mallorca, we analyze these new developments in detail so you can learn how to optimize your assets.
Inheritances and donations in the Balearic Islands: a unique tax framework
Mallorca as a tax-attractive destination in 2025
The Balearic archipelago has taken a decisive step forward in tax matters. Thanks to the reform, Mallorca is consolidating its position as a strategic center for estate planning, combining legal certainty with significant tax advantages.
Key changes in the General State Budget Law
The new regulations strengthen inheritance tax breaks and extend their benefits to lifetime gifts. This opens up a range of possibilities for families, business owners, and individuals with international assets.
Tax benefits for inheritances in Mallorca
100% discount for direct family members
In inheritances between parents, children, spouses, and ascendants, the 100% exemption on Inheritance Tax remains in effect. This means that the transfer of assets between direct relatives is tax-free in the Balearic Islands, as detailed by the Balearic Islands Tax Agency.
Advantages of inheritance agreements in the Balearic Islands
Inheritance agreements , a legal instrument typical of Balearic civil law, continue to gain relevance thanks to this legislation. They allow for inheritance planning during one's lifetime with complete security and without tax burdens.
Living donations: great advantages for residents and non-residents
100% bonus on donations between immediate family members
The major change for 2025 is the extension of the 100% tax break on Gift Tax. Now, donating real estate, a family business, or any other asset during your lifetime is as advantageous as inheriting it.
Simplified transfer of assets in Mallorca
With this reform, families can plan the transfer of assets during their lifetime, avoiding future conflicts and making the most of the tax benefits.
Advantages for other degrees of kinship
Brothers, uncles and nephews: 60% reduction
The regulations are not limited to immediate family members. Now, siblings, uncles, and nephews enjoy a 60% tax break, which greatly facilitates the transfer of assets within the family.
Parents-in-law, sons-in-law and daughters-in-law: 35% reduction
Family members by affinity also benefit: parents-in-law, daughters-in-law and sons-in-law have a 35% deduction, significantly reducing the tax cost of donations or inheritances.
International taxation: The Balearic Islands as a global benchmark
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 tax breaks. Whether they inherit or make a donation in Mallorca, they will enjoy the same conditions as residents.
Heritage located outside of Spain: practical application
The regulations even apply to assets located outside of Spain. This makes the Balearic Islands an ideal jurisdiction for international families with diversified properties or investments.
Resitax, your expert law firm in Mallorca
Tax advice on inheritances and donations
At Resitax, we have years of experience assisting families, businesses, and individuals with inheritance and donation management in Mallorca. We have firsthand knowledge of Balearic regulations and offer personalized advice that guarantees legal certainty and tax optimization.
Wealth optimization with legal certainty
Our team of tax experts analyzes each case comprehensively, tailoring the planning to each client's needs. The goal is clear: to protect and transfer your assets in the most efficient way possible.