Tax on the sale of luxury properties in Mallorca is going up

A 0.5% increase in 2022. | Archive

Majorca Daily Bulletin reporterPalma05/11/2021 12:19
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Tax on the sale of properties valued at one million euros or more is to go up in 2022. The Balearic government's budget has set a rate of 11.5%, an increase from 11% and one which is forecast to generate revenue of 679.7 million euros, 63% more than was budgeted this year. Finance minister Rosario Sánchez says this will "reinforce" progressive taxation at the high end of the property market.

At the lower end, the 5% rate for properties valued at no more than 200,000 euros will continue. There was a reduction from eight per cent to five per cent in 2019, and it was for first-time buyers. It will now be for other purchasers, so long as the properties are their habitual places of residence and they do not have other properties.