As reported in the media this summer, the new government in the Balearic Islands has implemented one of its electoral promises by adopting changes to the inheritance tax. The legislative decree of 18 July 2023, states that inheritance by close relatives, i.e. children, spouses and parents, is now subject to a 100% tax reduction.

Anyone on Ibiza who has wanted to sell or rent their property in recent years, is familiar with the necessity of getting the “certificado de eficiencia energetica”. The energy efficiency certificate is an official document issued by a specialist, and the basic idea of it is to rank properties according to their energy efficiency. The ratings go from A to G – the same letters that have been used for home appliances (refrigerators, televisions, etc.) for some time.

Non-resident owners of second homes here on Ibiza not only have to pay property tax (IBI) in Spain, but are also subject to a limited income tax based on the value of the property. This may sound paradoxical for a home-owner who has no income here, but the tax law argues that having the use of this property for the whole year is a form of income.