Inheriting a property in Mallorca when the owner resided in Germany requires coordinating the applicable inheritance law with the notarial, registry and tax procedures that must be carried out in Spain.
It is common for heirs to appear at a notary's office in Palma with the Erbschein issued by the German court, a copy of the will, and the idea that this documentation will allow them to register the property in their name without further formalities.
The German certificate proves who inherits, but the transfer of a property located in Mallorca is governed by the Spanish procedure, with its notarial deed, its registration in the Property Registry, its self-assessments and its deadlines.
The same applies, with some differences, when the deceased resided in Austria or Switzerland. Knowing the correct order of procedures helps avoid frozen accounts, registration delays, and stalled sales transactions while the probate process is completed.
From our office in Palma, at Resitax we specialize in international successions and in the processing of inheritances of non-resident owners with properties in Mallorca, especially when there are links with Germany, Austria or Switzerland.
Key summary about inheriting a home in Mallorca
An inheritance of a property in Mallorca with a deceased person residing in Germany raises two different issues that must be analyzed in a coordinated manner.
Firstly, it must be determined which law governs the inheritance and who the heirs are. Secondly, the necessary procedures in Spain for accepting the inheritance, settling tax obligations, and registering the property in the heirs' names must be completed.
In general terms, the process requires:
- Determine the law applicable to the succession.
- Locate the existing will or wills.
- Obtain the death certificate.
- Prove who the heirs are using the Erbschein or the European Certificate of Succession.
- Obtain the NIE of each heir.
- Prepare the Spanish deed of acceptance and adjudication of inheritance.
- File the Inheritance Tax using Form 650.
- Declare the municipal capital gains tax.
- Review the outstanding tax obligations of the deceased.
- Register the property in the Property Registry.
Proper coordination between Spain and the country of residence of the deceased is especially important to avoid duplication, delays and problems in the allocation of the property.
Which law applies to the inheritance of a property in Mallorca?
Succession is governed by Regulation (EU) 650/2012.
According to its art. 21, the law of the last habitual residence of the deceased governs the entire inheritance, including the property or apartment located in Mallorca.
Owner residing in Germany
If the owner lived in Munich, German law decides who inherits, with its Pflichtteil.
Therefore, the fact that the property is located in Mallorca does not in itself determine that the succession is subject to Spanish civil rules.
Owner residing in Austria
If the owner resided in Salzburg, Austrian law applies.
The statutory share of the Spanish Civil Code is not applicable in both cases.
Choice of nationality law
The testator may, however, have chosen the law of his nationality in his will by means of a professio iuris.
The existence of this choice must be verified at the beginning of the proceedings because it may modify the law that must be applied to the succession.
Does Balearic civil law apply?
Nor does Balearic civil law intervene, which only applies to Spaniards with Balearic civil domicile, no matter how long a German, Austrian or Swiss person has spent on the island.
Inheritance of a property in Mallorca when the deceased resided in Switzerland
The alleged Swiss case demands more caution.
Spain applies the Regulation universally, even when the designated law is that of a State that does not belong to the European Union, but Switzerland assesses succession from its own private international law.
The agreement between both points of view must be confirmed with the deceased's advisor in Switzerland.
An explicit choice of law in the will can clear up this issue and considerably facilitate subsequent proceedings.
German will and Erbschein in an inheritance in Mallorca
A will executed in Germany or Austria is valid in Spain, although it is not sufficient on its own to complete an inheritance of a property in Mallorca.
The Spanish notary requires proof of who the heirs are.
In practice, this accreditation is done through the Erbschein or through the European Certificate of Succession.
What is the function of the Erbschein?
The Erbschein issued by the German court allows proof of heir status.
It is one of the fundamental documents when the deceased resided in Germany, but it does not replace the notarial, tax and registry procedures that must be completed in Spain.
European Certificate of Succession
The European Certificate of Succession is another way to prove heir status and is effective in Spain without the need for a recognition procedure.
Its use can facilitate the coordination of a succession with elements located in different European States.
Spanish will limited to the assets of Mallorca
When the owner has also granted a Spanish notarial will limited to his assets in Mallorca, the process can be significantly shortened.
However, it must have been drawn up in coordination with the German or Austrian will to prevent one document from unintentionally revoking the other.
At Resitax we regularly advise on international inheritances with properties in Mallorca, so we jointly review Spanish and foreign wills, inheritance documentation and how to properly prove the heirs before formalizing the acceptance of the inheritance.
Documentation required for inheriting a property in Mallorca
To process an inheritance in Spain, heirs usually need to gather the following documentation:
- Apostilled death certificate with sworn translation into Spanish.
- Certificate from the General Registry of Last Wills and Testaments, which allows you to verify if the deceased made a will in Spain.
- Certificate of Succession and, where applicable, will, with sworn translation.
- NIE of each heir.
- Property deed.
- Recent simple note from the Property Registry.
- Latest IBI receipts.
Gathering this documentation from the beginning allows for the coordination of the notarial deed, self-assessments, and registration without generating unnecessary delays.
Acceptance of an inheritance of a property in Mallorca
The heirs accept the inheritance through a deed of acceptance and adjudication of inheritance.
It identifies the inherited assets and awards the property to the corresponding successors.
Once the corresponding taxes have been paid and the deed has been registered in the Property Registry, the heirs are able to sell, mortgage or lease the property in their name.
Is it necessary to travel to Mallorca to accept the inheritance?
Not necessarily.
The heirs can sign the deed in Palma or act by power of attorney, avoiding travel when the documentation has been properly prepared.
This possibility is especially relevant in inheritances with heirs residing in Germany, Austria or Switzerland.
What happens to bank accounts and housing expenses?
The deceased's Spanish accounts are blocked when the bank learns of the death.
As a result, payments related to housing, including utilities, property tax, and homeowners' association fees, may not be processed.
We suggest agreeing from the outset who will assume these payments while the probate process is underway.
In an international inheritance, a lack of planning for these expenses can lead to debts or problems during the months needed to complete the transfer.
Inheritance tax on a property inheritance in Mallorca
Non-resident heirs can apply the Inheritance and Gift Tax regulations of the autonomous community where most of the assets located in Spain are based.
In the case of an inheritance of a property in Mallorca, the applicable regulations will normally be those of the Balearic Islands.
Law 6/2025, in force since July 25, 2025, establishes a 100% tax credit for spouses, descendants and ascendants and expressly extends it to non-residents.
Brothers, nephews, uncles and relatives enjoy improved, though smaller, bonuses when there are no descendants.
Do I have to file Form 650 even if the tax is zero?
Yeah.
The fact that the fee is zero for certain family members does not eliminate the obligation to submit Form 650.
The self-assessment must be submitted within six months of the death.
The extension for another six months must be requested within the first five months.
Compliance with this deadline must be monitored from the beginning of the succession, even if documentation from Germany is still missing.
Value of the inherited property
The property is valued, at a minimum, at its cadastral reference value.
This assessment must be taken into account both in the preparation of the deed and in the corresponding self-assessment.
Municipal capital gains tax on an inherited property in Mallorca
In addition to the Inheritance Tax, the municipal capital gains tax must be analyzed.
Within that same six-month period, it must be declared to the corresponding city council.
Municipal capital gains tax may be levied even if the heirs are the spouse or children.
Therefore, a 100% reduction in Inheritance Tax does not mean that the transfer of the property is completely free of tax obligations in Spain.
Model 210 pending from deceased owner
The Non-Resident Income Tax of the deceased also remains pending.
For the year of death, Form 210 is submitted with the imputed income of the home for own use, prorated up to the date of death.
The rate is 19% if the deceased resided in Germany or Austria and 24% if they resided in Switzerland.
From the moment of death, the obligation passes to the heirs.
This aspect should be reviewed when analyzing the complete tax situation of the property before closing the inheritance.
Taxation of the inheritance of a property in Mallorca in Germany
Germany subjects the entire inheritance to Erbschaftsteuer when the deceased or the heir resides there
There is no treaty between Spain and Germany regarding inheritance, and the Spanish tax is deductible according to § 21 ErbStG.
Since the Balearic quota is currently zero for the direct family in the indicated cases, there is no Spanish amount to deduct and the Mallorca property is taxed entirely in Germany, applying the reductions (Freibeträge) provided for by German regulations.
This issue is essential.
The fact that an inheritance of a property in Mallorca has reduced or zero taxation in the Balearic Islands does not mean that the transfer is free of taxation in Germany.
What happens if the deceased resided in Austria?
Austria has not taxed inheritances since 2008.
For the heirs of an Austrian deceased, the Balearic tax break can leave the transfer practically free of inheritance tax.
However, all the notarial, tax and registry procedures required in Spain are still necessary.
What happens if the deceased resided in Switzerland?
In Switzerland, inheritance tax is cantonal.
The spouse is exempt and, in most cantons, so are direct descendants.
Properties located abroad are not usually taxed, although they may be taken into account to determine the applicable rate.
These details should be confirmed with the advisor in the country of residence.
Recommended order for processing a property inheritance in Mallorca
The order of actions is especially important in an international succession.
When a homeowner residing in Germany with a property in Mallorca passes away, we recommend following this sequence:
- Obtain the death certificate.
- Locate all existing wills.
- Determine the law applicable to the succession.
- Obtain the Erbschein or the European Certificate of Succession.
- Request the NIE of the heirs.
- Locate the property registration documents.
- Review the property's tax status.
- Calculate the Inheritance Tax.
- Calculate the municipal capital gains tax.
- Prepare the acceptance and award document.
- Submit the self-assessments.
- Register the property in the Property Registry.
The acceptance deed, the correct presentation of taxes and the registration allow the Spanish real estate file to be closed.
Plan for a future inheritance of a home in Mallorca while you are still alive
Estate planning while you are alive is usually simpler and cheaper than dealing with all the problems after you die.
A will with an express choice of law, a well-considered distribution of ownership between the spouses, and, when appropriate, life insurance to finance the German tax can reduce costs and uncertainty for the family.
In the German case, the main tax burden may be located precisely in Germany, so this should be planned for in advance.
Coordination of German and Spanish wills
A Spanish will limited to assets located in Mallorca can considerably simplify the process.
However, it must be drafted in coordination with the German will to avoid contradictions or unintentional revocations.
This coordination is especially important when there are properties, accounts or investments in several countries.
Resitax: specialists in international inheritances in Mallorca
From our office in Palma, at Resitax we specialize in international taxation, estate planning and cross-border inheritances with assets located in Mallorca.
We handle inheritances for owners residing in Germany, Austria and Switzerland and also provide advice before death to correctly structure ownership, wills and the tax consequences of the future transfer.
When we manage an inheritance of a property in Mallorca, we analyze the following together:
- The applicable inheritance law.
- Existing wills.
- The Erbschein or European Certificate of Succession.
- Spanish documentation.
- The deed of acceptance and adjudication.
- The Inheritance Tax.
- Municipal capital gains tax.
- Outstanding tax obligations.
- The registration.
- Fiscal coordination with Germany, Austria or Switzerland.
Our approach is based on an international vision of succession and not solely on the processing of the property in Spain.
We provide services in Spanish and German and, when the case requires it, we coordinate the succession with the client's advisors in their country of residence.
Frequently asked questions about inheriting a property in Mallorca
What happens to a property in Mallorca when an owner residing in Germany dies?
The property forms part of the estate. The heirs must be determined according to applicable law, and the deed of acceptance, tax payments, and registration of the property in the Land Registry must be completed in Spain.
What law governs the inheritance of a property in Mallorca?
Pursuant to Article 21 of Regulation (EU) 650/2012, succession is generally governed by the law of the deceased's last habitual residence.
If he resided in Germany, it will normally be German law that determines who the heirs are, unless there is a valid choice of another law in accordance with the Regulation.
Does Balearic law apply because the property is in Mallorca?
Not simply because the property is located in Mallorca.
Balearic civil law only applies to Spaniards with Balearic civil domicile.
Is a German will valid in Spain?
Yes. A will executed in Germany can be valid in Spain, although the necessary documentation to prove the succession must be provided and the Spanish notarial, tax and registry procedures must be completed subsequently.
What is an Erbschein?
The Erbschein is the succession certificate issued by the German court that allows you to prove who the heirs are.
It can be used to process the inheritance in Spain along with the rest of the necessary documentation.
Can a European Certificate of Succession be used?
Yeah.
The European Certificate of Succession is effective in Spain without the need for a specific recognition procedure.
Does the Erbschein allow the property to be directly registered in the name of the heirs?
No.
The Erbschein proves who inherits, but the acceptance and adjudication of the inheritance, the corresponding tax obligations and the registration must still be formalized in Spain.
Do German heirs need a NIE (Foreigner Identification Number)?
Yeah.
Each heir must have a NIE (Foreigner Identification Number) to correctly carry out tax, notarial and registry procedures in Spain.
How long is there to file the Inheritance Tax return?
Form 650 must be self-assessed within six months of the death.
The extension for another six months must be requested within the first five months.
Do the children of a German property owner pay Inheritance Tax in Mallorca?
Law 6/2025, in force since July 25, 2025, establishes a 100% tax credit for spouses, descendants and ascendants and expressly extends it to non-residents.
Do I have to submit Form 650 if the fee is zero?
Yeah.
The existence of a bonus that leaves the fee at zero does not eliminate the obligation to submit the self-assessment.
Do you have to pay municipal capital gains tax when inheriting a property?
The municipal capital gains tax must be analyzed and declared to the corresponding town hall and may accrue even if the heirs are the spouse or children.
Is the inheritance of a property in Mallorca also taxed in Germany?
Yes, when the requirements of its regulations are met.
Germany subjects the entire estate to tax (Erbschaftsteuer) when the deceased or the heir resides there. German taxation must be analyzed separately from Spanish taxation.
Is it advisable to make a Spanish will for a property in Mallorca?
It can be very useful to have a Spanish will limited to assets located in Mallorca, provided that it is drafted in coordination with the German will to avoid contradictions or involuntary revocations.
Can Resitax process a property inheritance in Mallorca for heirs residing in Germany?
Yeah.
From our office in Palma we handle international inheritances for owners residing in Germany, Austria and Switzerland, including the necessary documentary, tax, notarial and registry coordination to correctly allocate the assets located in Mallorca.
This article is for general information purposes and does not replace legal and tax advice on a specific case.