Spain taxes the house. Your country taxes you.

Is there a tax treaty between Denmark and Spain?

No. Denmark terminated it with effect from 1 January 2009, and no new treaty is in force. You still don't pay twice on the same income: Denmark credits the Spanish tax under its own rules (ligningsloven § 33), up to the Danish tax on that income. In practice you pay at the higher of the two levels, and both countries must see the same numbers.

What does it cost to buy?

On a resale home in the Balearics you pay transfer tax (ITP) on a sliding scale from 8 % to 13 %. A €1,000,000 purchase costs €90,000 in ITP — 9 %, because the steps are marginal. Add notary, land registry and your own lawyer, typically 1–2 % together. A new build carries 10 % IVA plus stamp duty instead of ITP.

Should I buy in my own name or through a company?

For private use, Danish advisers rarely recommend a company. If a company owns a holiday home that you control, Denmark can tax you on its availability — up to 16.25 % of the value a year, whether you use it or not — and Spain expects the company to charge you market rent. Direct ownership is usually simpler. Decide what you are trying to solve before you choose a structure.

Confirm this point with your own adviser.

Do I need a Spanish tax number?

Yes. You need an NIE before you can sign at the notary, and a Spanish account is close to unavoidable for paying taxes and utilities by direct debit. Apply early — the NIE appointment is often the slowest step in the whole purchase.

How does buying work, step by step, and how long does it take?

You get a Spanish tax number (NIE) and a Spanish account, your own lawyer checks the property, and you sign a private reservation or deposit contract (arras), usually with 10% down. The deed is signed before a notary, you pay the balance there, and the lawyer registers the deed and files the taxes. Six to twelve weeks from accepted offer to keys is normal; the NIE is often the slowest step, so start it early.

What does buying cost on top of the price?

On a resale home in the Balearics the transfer tax (ITP) is progressive: 8% up to €400,000, 9% to €600,000, 10% to €1 million, 12% to €2 million and 13% above, applied as an average across the bands. Add notary, land registry and your lawyer, typically 1–2% together. A new home from a developer carries 10% IVA plus 1.5% stamp duty (2% from €1 million) instead of ITP.

Do I need my own lawyer when there is a notary?

Yes. The notary certifies the deed and checks identities and payments, but does not act for you. Your own independent lawyer checks title and charges in the land registry (nota simple), building licences, the habitation certificate, the tourist licence if one is claimed, and unpaid taxes or community fees that would pass to you. Never use the seller's or the agent's lawyer.

What do I pay in Spain if I only use the house myself?

Three things. Local IBI and waste charges to the town hall. Non-resident income tax on an imputed income — 1.1 % or 2 % of the cadastral value, taxed at 19 % for EU residents, filed once a year on Modelo 210. And wealth tax only if your net Spanish assets exceed €3,000,000 under the Balearic rules.

Do I pay Danish property value tax on a house in Mallorca?

Yes. Ejendomsværdiskat applies to a holiday home abroad. The base is 80 % of the value Skattestyrelsen sets or accepts for the property, taxed at 0.51 % up to the progression limit and 1.4 % above it. Spanish property taxes such as IBI can be credited against it.

Do I have to pay wealth tax in Spain?

Probably not, unless you are wealthy in Spain. As an EU resident you can use the Balearic rules, where the first €3,000,000 of net Spanish assets per person is exempt. A couple owning together each has their own threshold. Above it, the state solidarity tax also applies, but Balearic wealth tax paid is deducted from it.

Who files what, and when?

In Spain: Modelo 210 for the imputed income — for 2025 by 31 December 2026; from the 2026 tax year between 1 April and 31 December of the following year — plus IBI when the town hall bills it. In Denmark: the property and its value in your annual return, with the Spanish tax you want credited. A Spanish fiscal representative or gestor typically files for you; keep every receipt, because Skattestyrelsen can ask for them.

What does a house in Mallorca cost to run each year?

The fixed items are IBI (municipal property tax), the waste charge, insurance, community fees if there is a community, and the Spanish imputed income tax for non-residents. On top come electricity, water, garden, pool and maintenance, which on a villa usually outweigh the taxes. Ask the seller for the last IBI receipt and a year of utility bills before you buy.

May family and friends use the house?

Yes. Free use by you, your family and friends is not letting and needs no licence; the Spanish imputed income tax is due either way. Once anyone pays, it is letting: stays under a month need a tourist licence (ETV), while stays of a month or more can be let on a written seasonal lease, and the rental income must be declared in both countries.

How is rental income taxed in Spain?

As an EU resident you pay 19 % on the net income — rent minus deductible costs for the rented days. Non-EU owners pay 24 % on the gross. Rental income is declared on Modelo 210; from the 2026 tax year one annual return, filed 1–20 April of the following year. On €100,000 of rent with €30,000 of costs, that is €13,300.

Do I also pay tax in Denmark on the rent?

Yes. Rental income from Mallorca is taxable in Denmark. The Spanish tax on the same income is credited, but only up to the Danish tax on it. If the Danish rate on that income is higher, you pay the difference in Denmark. Keep the Spanish returns and payment receipts; they are your proof.

Can I let it to holidaymakers?

Only with a holiday rental licence (ETV), and new licences in Mallorca are scarce. Without one, you can let for 30 days or more under a seasonal contract, which is legal and taxed the same way. A licence is attached to the property, so it is worth checking before you buy, not after.

Does letting it out affect a tax-free sale later?

It can. The Danish summer-house rule makes the gain tax-free only if you and your household have used the home privately. Letting it out can cost that exemption. If you expect to sell with a gain, decide on letting with that in mind.

Did the October 2026 housing decrees change the rules for letting?

No — they lasted about a day. On 2 October 2026 Congress rejected both emergency housing decrees, 172–178 and 166–184, and they were repealed. They had extended leases expiring in 2026, stopped evictions of vulnerable tenants, and required automatic renewal with 12 months' compensation if the landlord ended a lease. None of that applies now. For a Mallorca home the rules you already know stand: a licence (ETV) for holiday lets, a seasonal contract for stays of 30 days or more. Expect the subject to return — housing is now a central political fight in Spain.

How is a share in a Homebase home taxed for a Dane?

It depends on the structure. If the share is a slice of the deed, you own property: Danish property value tax on your share, Spanish imputed income tax on your share. If the share is a part of a Spanish S.L., you own shares, not property: gains and distributions are taxed in Denmark as share income. We describe both structures for every home.

Is a company share a problem for Danes?

It can be, if you control the company or sit on its board. Denmark can then tax you on the home's availability, regardless of how many weeks you use. A minority shareholder without control is in a different position. Ask your adviser before you sign, and tell them how many shares you and your family will hold together.

Confirm this point with your own adviser.

What happens when I sell my share?

With a deed share, the buyer pays transfer tax again (8–13 %) and you pay Spanish gains tax and plusvalía. With an S.L. share, a transfer below 50 % control normally carries no transfer tax, and the deal is signed at the notary without a new land registry entry. That is why resale is the main argument for the company structure.

What do I pay in Spain when I sell?

19 % on the gain as an EU resident, plus the municipal plusvalía on the land value. The buyer withholds 3 % of the price and pays it to the Spanish tax office. That 3 % is an advance: you file Modelo 210 within four months and reclaim the difference if the actual tax is lower.

Is the gain taxed in Denmark?

Yes, unless the sale qualifies as tax-free. For a holiday home that is the summer-house rule: you and your household have used it privately, and the plot is under 1,400 m² or can't be subdivided. Spanish gains tax can be credited against the Danish tax. Fincas on large rustic plots often meet the test because they can't legally be split — check it for your home.

Confirm this point with your own adviser.

What documents should I have ready?

The deed (escritura), the latest IBI receipt, the energy certificate, the habitability certificate where required, the licence if it is let to holidaymakers, and the paperwork behind your purchase price and improvements — they reduce the taxable gain in both countries. A prepared file is also what makes a buyer move.

What is plusvalía, and who pays it?

Plusvalía is the municipal tax on the increase in the land value while you owned the house. The seller pays it. Since 2021 you can choose between the town hall's coefficient method and the real gain, and if you sell without a gain no plusvalía is due — keep your purchase deed and costs to prove it.

What happens in Spain if my children inherit the house?

Spain taxes the inheritance of Spanish property, and heirs who live outside Spain can use the Balearic rules. Spouses, children and other close family get a 100 % reduction on Balearic inheritance tax — since 25 July 2025 also when the heirs live in Denmark — so in most cases they pay nothing in Spain. Notary, registry and plusvalía still apply.

And in Denmark?

Denmark has its own estate rules, and whether the Spanish house is handled in the Danish estate — and taxed there — depends on how the estate is administered. Spanish inheritance tax paid can be credited where Danish estate tax applies. Your Danish will may not be enough on its own: a Spanish will covering the Spanish property makes the process far quicker.

Confirm this point with your own adviser.

Can I give the house to my children while I'm alive?

Yes. Since July 2025 gifts to children and spouses get the same 100 % Balearic reduction as inheritances. But a gift counts as a sale for you: you pay Spanish gains tax on the increase in value, and Denmark looks at the gift on its own terms. Run the numbers on both sides before you sign.

Confirm this point with your own adviser.

When do I become tax resident in Spain?

When you spend more than 183 days a year in Spain, or your main economic interests are there. From then on Spain taxes your worldwide income. Denmark can still treat you as fully tax liable if you keep a home available there, so plan the move, don't drift into it.

What happens to my Danish pension?

Without a treaty, Denmark keeps taxing Danish pensions at source, and Spain taxes them again as a resident's income, crediting the Danish tax up to the Spanish tax on it. For most pensioners that means paying at the higher of the two rates. This is the single biggest planning point for Danes moving to Spain.

Do I have to report my Danish assets to Spain?

Yes. As a Spanish resident you file Modelo 720 for foreign assets above €50,000 per category — accounts, securities, property. The heavy penalties were struck down by the EU Court in 2022, but the filing obligation remains.