Inheritance, Gifts & Balearic Foral Law
*Mallorca has its own inheritance law — with a lower forced share and unique instruments such as the definición. Plus: since 2023 inheritance passing to children/spouses is effectively tax-free.*
Key message: Anyone bequeathing a Mallorca property is subject (where there is Balearic vecindad civil or via the EU Succession Regulation) not to mainland inheritance law, but to the Compilación del Derecho Civil de les Illes Balears — different forced shares, different planning and tax consequences.
Compilación del Derecho Civil de les Illes Balears (DLeg 79/1990)#
The Balearics' own foral / civil / inheritance law (BOIB-i-1990-90001). The Spanish Código Civil applies only subsidiarily. Four books: Libro I = Mallorca, II = Menorca, III = Ibiza/Formentera. Important reforms: Ley 7/2017 and Ley 8/2022 (contractual succession law, in force since 17.01.2023).
Legítima (forced share) in Mallorca ✅#
✅ established — Compilación DLeg 79/1990 (Libro I):
| Beneficiaries | Forced share | Article |
|---|---|---|
| Children/descendants | 1/3 (with ≤ 4 children) or 1/2 (with > 4) | Art. 42 |
| Parents/ascendants (without descendants) | 1/4 ✅ (not 1/3) | Art. 43 |
| Surviving spouse's usufruct | 1/2 (alongside children), 2/3 (alongside parents), otherwise universal usufruct | Art. 45 |
→ Significantly more freedom of disposition than on the mainland (where the children's forced share is 2/3).
Definición / *diffinitio* — the Mallorcan specialty ✅#
Unique instrument (Art. 50/51 Compilación, now as amended by Ley 8/2022): a descendant waives, during the lifetime of the parents, their future inheritance / forced-share rights in view of a gift — a waiver of the forced share in exchange for an advance gift. On the mainland (prohibition of contracts over future inheritances) it is forbidden; in Mallorca it is permitted and common.
- Foreigners: 🟡 TSJIB ruling 1/2021 — foreigners resident in Mallorca (habitual
residence) can conclude a definición, even without vecindad civil.
- For tax purposes treated as a process analogous to mortis causa → ISD bonification (see below) and no
IRPF "plusvalía del muerto" for the transferor. Top planning tool in Mallorca.
Donación universal de bienes presentes y futuros ✅#
Universal gift / appointment of an heir during one's lifetime (heredero contractual); transfers present assets immediately, revokes earlier wills, and is irrevocable. An instrument for lifetime business/property succession. (Art. 8–13 Compilación, now Ley 8/2022.)
Will & EU Succession Regulation#
- Will (
testamento abiertobefore a notary = standard). Content per the Compilación, form per the CC. - EU Succession Regulation (Reg. 650/2012, "Brussels IV"): In principle the law of the
habitual residence applies (Art. 21); by a choice of law (professio iuris, Art. 22) the law of nationality can be chosen. The European Certificate of Succession (ECS) facilitates the land-registry transfer. → German owners should deliberately make a choice of law.
Tax: Impuesto sobre Sucesiones y Donaciones (ISD) Balearics ✅#
Inheritance — bonification up to 100% (Decreto-ley 4/2023) ✅#
Since 18.07.2023, a 100% bonification of the ISD for Groups I & II (children of any age, spouses, parents) → inheritance to children/spouses is effectively tax-free. Group III (siblings, uncles/aunts, nephews/nieces): 50% (if the deceased has no descendants) or 25%. The filing obligation remains (Modelo 650/660 via ATIB; deadline 6 months, +6 months extension).
Gift vs. inheritance vs. succession pact#
| Pure gift | Inheritance | Succession pact (definición/donación universal) | |
|---|---|---|---|
| ISD Group I/II | 🟡 high bonification (2024/25 reform) | 100% | 100% |
| IRPF capital gain of the transferor | taxable | does not apply | does not apply ("plusvalía del muerto") |
→ For properties that have appreciated sharply, the succession pact is often more advantageous, for tax purposes, than a pure gift. Plusvalía municipal (municipal) may nonetheless be due.
Double taxation (inheritance)#
🟡 There is no inheritance-tax treaty Germany↔Spain or USA↔Spain → a double-taxation risk, mitigated via §21 ErbStG (DE) or Form 706-CE/Schedule P (US). Details → Ch. 14.
❓ FAQ#
How large is the forced share in Mallorca? Children 1/3 (with up to 4 children) or 1/2 (from 5); parents 1/4. Significantly lower than on the Spanish mainland (2/3).
Do children pay inheritance tax on a Mallorca property? Since 2023 a 100% bonification applies for children/spouses/parents — effectively no ISD, but the declaration (Modelo 650/660) is mandatory.
Sources (selection)#
- Compilación DLeg 79/1990 (BOIB-i-1990-90001), Art. 42/43/45/50/51 · Ley 7/2017 · Ley 8/2022
- Decreto-ley 4/2023 (ISD bonification) · Reg. (EU) 650/2012 · TSJIB 1/2021