Tax Measures for Non Residents


 Balearic tax reform 2016

Established tax measures of the General Budget LAW for the Autonomous Region of the Balearic Islands

Plus established tax measures for NON Residents

After the approval of the General Budget Law for the Autonomous Region of the Balearic Islands, that comes into effect on the 1st January 2016. An increase in the scale of the taxes granted to the autonomous region is established for the year 2016, although in certain taxes these will be back dated for 2015, these taxes being that of the Personal Income Tax and Wealth Tax. Concerning the Wealth Tax the non residents may choose to pay tax in the scale most convenient to them, as you will see it is better to pay the state scale rather than the autonomous scale under which the residents must pay.

 tax measures for non residents

The news concerning this rise in taxes can be seen in the Inheritance Tax between parents and children. Up until now the tax payable was 1% on the inheritance received, and with the new approved tax measures, the 1% will be applied on the first 700.000€ value of the inheritance for each heir, and the remainder under a scale which is later attached.

Personal Income Tax. (IRPF)

The autonomous rate increases. This scale will be applicable for the tax year 2015. This will be back dated. The joined state and autonomous rate (Region of the Balearic Islands) will be the following:

Scale for tax residents in Spain.


Income Tax for Non Residents. (IRNR)

Tax for properties located in Spain whose owners are individual persons not resident and/or Non Resident Companies without permanente establishment. The tax will depend on whether the property is rented or not.

Capital Gains from the sale of an estate in Spanish territory (IRPF / IRNR)

In general the capital gains obtained by non resident individuals without permanent establishment are subject to Non Resident Income Tax. 

Wealth Tax

The rate increases. This scale will be applicable for the tax year 2015. This application will be back dated. The minimum exempt is also reduced. The Inland Revenue Office had it fixed in 800.000€ and it is reduced to 700.000 € as it was in previous tax years.

This increase can only be seen in the Wealth Tax of those Resident in the Baleares, the non Residents will pay tax on the state or autonomous scale, whichever is more to their benefit. 

Onerous Patrimony Transfer Tax and Juridical Acts

With the new taxation measure, is established a new stretch in the rate, for when the values of the property are over 1.000.000 €, that will pay tax at 11%. 

Inheritance and Donation Tax

A special rate is established for inheritance of the people within Group I and II (children, parents, spouses).


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