Spain taxes the house. Your country taxes you.

Is there a tax treaty between Sweden and Spain?

Yes. The treaty signed in Madrid on 16 June 1976 has been in force since 21 December 1976 and still applies; it has not been terminated or replaced. Spain taxes the property first: imputed income, rent and the gain on a sale. Sweden then taxes rent and gains too, and credits the Spanish tax up to the Swedish tax on the same income (Article 24). In practice you pay at the higher of the two levels.

What does buying cost on top of the price?

On a resale home in the Balearics you pay transfer tax (ITP) on a marginal scale: 8 % up to €400,000, 9 % to €600,000, 10 % to €1 million, 12 % to €2 million and 13 % above. A €1,000,000 purchase costs €90,000 in ITP — 9 % on average. Add notary, land registry and your own lawyer, typically 1–2 % together. A new home bought from the developer carries 10 % IVA plus stamp duty instead of ITP. In Sweden these costs count as part of your purchase price when you sell.

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

Yes. The Spanish 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, a 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.

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

You get a Spanish tax number (NIE) and a Spanish bank 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 appointment is often the slowest step, so start it early.

Should I buy privately or through a Swedish aktiebolag?

For a home you use yourself, privately is usually simpler. Owned privately, the house can be a privatbostad: rent gets the standard deduction and only 22/30 of a gain is taxed. A company-owned property is always a business property in Sweden: the company pays 20.6 % on profits and gains, distributions are taxed again, and if you or your family use the house, the use is taxed as a benefit or a hidden dividend at market rent. Have it checked before you sign.

Confirm this point with your own adviser.

Do I have to tell Skatteverket when I buy?

No. Skatteverket does not need to be told about the purchase, and a house used only by you and your family triggers no Swedish return. Keep the purchase contract, the deed and a note of the exchange rate on the day you signed: when you sell, Sweden converts your purchase price into kronor at that day's rate. If the Mallorca home replaces a Swedish home on which you claim deferral (uppskov), different rules apply — see Selling.

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 Spanish wealth tax only if your net Spanish assets exceed €3,000,000 per person under the Balearic rules, which you may apply as a non-resident; above that the state solidarity tax also applies, with Balearic wealth tax deducted from it.

Do I pay Swedish property fee on a house in Mallorca?

No. Sweden charges no fastighetsavgift or fastighetsskatt on a home abroad, and Sweden has had no wealth tax since 2007. Own use produces no Swedish income, so there is nothing to declare. The flip side: Spanish IBI and the imputed-income tax cannot be credited in Sweden in a year with only own use. They can be credited in years when Sweden taxes income from the house — rent or a gain on sale.

Who files what, and when?

In Spain, Modelo 210 for the imputed income: for 2025 by 31 December 2026; from the 2026 tax year the window is 1 April to 31 December of the following year. IBI is paid when the town hall bills it. In Sweden nothing is due for pure own use. If you let or sell, the income goes in your Swedish return (inkomstdeklaration), due 2 May the following year. Keep every Spanish return and payment receipt; you need them to claim credit.

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. Use by you and close family is also what keeps the house a privatbostad in Sweden. 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 rent must be declared in both countries.

Can I deduct interest on a loan for the house in Sweden?

Normally yes. Interest on a loan used to buy a home abroad is deductible in the capital income category, like interest on a Swedish home loan. If your interest exceeds your capital income, the deficit reduces your other Swedish tax by 30 % up to SEK 100,000 and 21 % above. If the house is a business property, the interest is deducted in that business instead. Spain does not allow the interest against the imputed-income tax.

Confirm this point with your own adviser.

How is rental income taxed in Spain?

As an EU resident you pay 19 % on the net income — rent minus deductible costs for the let 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, the Spanish tax is €13,300.

Do I also pay tax in Sweden on the rent?

Yes, if you are taxable in Sweden. For a privatbostad the rent is capital income taxed at 30 %, after a standard deduction of SEK 40,000 a year per home (not per owner) plus 20 % of the rent; actual costs are not deductible. On SEK 200,000 of rent: 200,000 − 40,000 − 40,000 = 120,000, Swedish tax SEK 36,000, minus the Spanish tax on the same rent. Report the surplus at 7.3 in your return and claim the credit under Övriga upplysningar or on form SKV 2703.

What if the Spanish tax is higher than the Swedish tax?

Then Sweden credits only up to the Swedish tax on that income, and the rest is not refunded. Unused Spanish tax can be carried forward and credited for up to five years against Swedish tax on later foreign income. In a year when Sweden taxes rent or a gain from the house, Spanish IBI and imputed-income tax can also be credited. The Swedish standard deduction often makes the Swedish tax lower, so run both numbers.

When does letting turn the house into a business property in Sweden?

A house is a privatbostad if you or close family use, or intend to use, more than half of it as a permanent or holiday home. Letting it to strangers for a period is fine if you can show you intend to use it again within the foreseeable future — Skatteverket says usually no more than three years. If not, it is a business property (näringsfastighet): actual costs and depreciation become deductible, but you must keep books, file form NE, and 90 % of a gain is taxed instead of 22/30.

Confirm this point with your own adviser.

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 a month or more under a written seasonal contract, which is legal and taxed the same way. A licence is attached to the property, so check it before you buy, not after. In Sweden the tax is the same either way, as long as the house remains a privatbostad.

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 more than a month. Expect the subject to return — housing is now a central political fight in Spain.

How is a share in a Homebase home taxed for someone taxed in Sweden?

It depends on the structure, and we state it for every home. If the share is a slice of the deed, you own property: Spanish imputed-income tax and IBI on your share, nothing in Sweden for own use, and Swedish tax with Spanish credit on rent — the SEK 40,000 deduction is per home, so co-owners split it. If the share is part of a Spanish S.L., you own company shares, and dividends and gains are taxed in Sweden as share income, with Spanish tax credited.

Confirm this point with your own adviser.

Is an S.L. share a problem for Swedish residents?

It can be, mainly because of use. If the S.L. is not treated as the equivalent of a Swedish housing company, staying in the home for less than market rent is taxed in Sweden as a dividend. If its business is essentially providing the home to its shareholders, Swedish law can treat it like a bostadsrättsförening: use is then not taxed and a gain is taxed like a home. The Swedish anti-avoidance rules on low-taxed foreign companies normally don't bite, because Spanish corporate tax (25 %) is well above the threshold.

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 %), you pay 19 % Spanish gains tax and plusvalía, and Sweden taxes 22/30 of the gain at 30 % with the Spanish tax credited. With an S.L. share, a transfer that doesn't give the buyer control normally carries no transfer tax, but Spain still taxes your gain at 19 %. In Sweden, gains on unlisted shares in a normally taxed foreign company are taxed on five-sixths — 25 % effective — unless the S.L. counts as a housing company or special closely-held-company rules apply.

Confirm this point with your own adviser.

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 (Modelo 211). That 3 % is an advance: you file Modelo 210 within four months of the sale and reclaim the difference if the actual tax is lower.

Is the gain taxed in Sweden?

Yes, however long you have owned it. For a privatbostad, 22/30 of the gain is taxed at 30 % — 22 % of the gain. The Spanish 19 % is credited, so you typically pay the difference in Sweden. A loss is deductible at 50 %. Report the sale on form K5 (house or apartment owned outright) with your return the year after, and claim the Spanish tax as a credit. A business property is taxed on 90 % of the gain instead.

How is the gain calculated in kronor?

In kronor, at historical rates. The purchase price is converted at the exchange rate on the day you signed the purchase contract, improvements at the rate when you paid them, and the sale price at the rate on the day you sign the sale contract — or the actual rate if you change the euros into kronor within 30 days. A stronger euro therefore increases the Swedish gain. Improvements count only in years when they total at least SEK 5,000; improving repairs only for the year of sale and the five before.

Can I defer the Swedish tax (uppskov)?

Not on a holiday home. Deferral needs the home you sell to be your permanent home — lived in for at least the last year, or three of the last five — and a replacement home in the EEA that you move into. So selling the Mallorca house rarely qualifies, but selling your Swedish home and buying in Mallorca to live there can. The deferral is capped at SEK 3,000,000 times your ownership share, and becomes taxable when you sell the replacement home.

What is plusvalía, and who pays it?

Plusvalía is the municipal tax on the increase in the land value while you owned the house. On a sale 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 documents should I have ready?

The deed (escritura), the latest IBI receipt, the energy certificate, the habitation certificate where required, the licence if it is let to holidaymakers, and the paperwork behind your purchase price and improvements, with dates — Sweden converts each at the rate of its day. For the Swedish credit you also need the Spanish Modelo 210 for the sale and proof of payment. A prepared file is also what makes a buyer move.

What happens in Spain if my children inherit the house?

Spain taxes the inheritance of Spanish property, and non-resident heirs apply the Balearic rules. Spouses, children, grandchildren and parents get a 100 % reduction of Balearic inheritance tax; since 25 July 2025 this also applies to heirs who live outside Spain, so in most cases they pay nothing in Spain. The return is due within six months. The heirs still pay the municipal plusvalía on the land value, plus notary and registry.

Confirm this point with your own adviser.

And in Sweden?

Sweden has had no inheritance or gift tax since 2005, so nothing is due in Sweden when your children inherit. The catch comes later: heirs take over your tax position, including your purchase price in kronor. When they sell, the Swedish gain is calculated from what you paid, not from the value at inheritance. Spanish inheritance tax cannot be credited in Sweden, because there is no Swedish tax to set it against.

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

Yes, but look at both countries. In Spain, gifts to children and spouses get a 100 % Balearic reduction since 25 July 2025, if made by public deed; but Spain treats the gift as a disposal by you, so you pay 19 % on the increase in value, and the child pays the plusvalía. Sweden has no gift tax, a pure gift is not a sale, and your child takes over your purchase price. That Spanish gains tax cannot be credited in Sweden. If the child pays anything or takes over a loan, Sweden may see a sale.

Confirm this point with your own adviser.

Which law applies to my estate, and do I need a Spanish will?

Under the EU Succession Regulation your whole estate, including the Mallorca house, follows the law of the country where you habitually live — Swedish law while you live in Sweden — unless your will chooses the law of your nationality. A Swedish will can be used in Spain, but the Spanish notary will want it translated together with proof of who the heirs are, such as the Swedish estate inventory or a European Certificate of Succession. A separate Spanish will for the Spanish property, aligned with your Swedish one, makes the process much faster.

Confirm this point with your own adviser.

When do I become tax resident in Spain, and when do I stop being taxable in Sweden?

Spain treats you as resident if you spend more than 183 days a year there, if your main economic interests are there, or if your spouse and minor children live there. Sweden keeps taxing your worldwide income while you have an essential connection (väsentlig anknytning) — family, a year-round home or a business in Sweden. For Swedish citizens it is presumed for five years after leaving unless you show otherwise. If both countries claim you, the treaty decides by permanent home and centre of vital interests.

Confirm this point with your own adviser.

What happens to my Swedish pension?

Under the 1976 treaty it depends on the pension. Public-sector pensions from the state, a municipality or a region stay taxable only in Sweden, unless you are a Spanish citizen. Allmän pension, and pensions from Swedish life insurance, can be taxed in both countries if you are a Swedish citizen; Sweden then credits the Spanish tax. Private occupational pensions are in principle taxed only in Spain. Swedish tax is SINK at 22.5 % in 2026 and 20 % from 2027, or ordinary tax on request. Have each pension classified before you move.

Confirm this point with your own adviser.

Is there an exit tax when I leave Sweden?

No. Sweden has no general exit tax for individuals; the government closed the inquiry into one in 2023, and none has been introduced since. What exists is the ten-year rule: gains on shares are taxable in Sweden for ten years after you leave. The 1976 treaty, however, generally gives Spain the sole right to tax share gains once you are resident there; the main exception is shares in a property-rich company that you control, sold within five years. Get advice before selling a large holding.

Confirm this point with your own adviser.

What happens to deferred tax (uppskov) on my Swedish home when I move?

It stays with you. A home in Mallorca that you move into can be the replacement home, but you must report it to Skatteverket every year — on form K2 if you file a Swedish return, otherwise on form SU2 by 2 May. When you sell the replacement home, or give it away, the deferred amount is taxed in Sweden, even if you no longer live there. You can also pay it off voluntarily.

Do I have to report my Swedish assets to Spain?

Yes. As a Spanish resident you file Modelo 720 for foreign assets above €50,000 per category — accounts, securities and insurance, property — by 31 March of the following year. The heavy penalties were struck down by the EU Court in 2022, but the filing obligation remains. As a Balearic resident you also pay wealth tax on worldwide assets above €3,000,000, plus €300,000 for your main home.

Do I have to tell Skatteverket that I am moving?

Yes, if you will live abroad for at least a year. You must notify Skatteverket no later than one week before you leave, and you are then deregistered from the Swedish population register. Deregistration is not the same as leaving the Swedish tax net: you remain fully taxable while an essential connection remains. File a final Swedish return for the year you leave, and keep evidence of where you live from then on.