The Spanish Constitutional Court (“Tribunal Constitucional”) de¬clared the method for calculating the “plusvalía tax” to be inadmis¬sible as of October 2021.

As a consequence of this the munici¬palities can no longer collect this tax for the time being.

On July 10, 2021, Law 11/2021 on Measures to Prevent and Combat Tax Fraud (Ley de Medidas de Prevención y Lucha contra el Fraude Fiscal) was published in the Official Gazette. It includes a number of important changes in the area of wealth tax, real estate transfer tax and inheritance tax.

Most important is that a general real estate market reference value will be established, which in Spanish is “valor de referencia del mercado inmobiliario”.

Those who purchase a property in Ibiza these days often think of reducing the costs of buying and maintaining the house through holiday rentals.

Since the Balearic Tourist Act was passed in 2012, tourist rentals have been regulated by law and permitted under specific conditions.