Separation, Divorce & Dissolution of Joint Ownership
*When an (often international) couple separates: who gets the Mallorca property, which matrimonial property regime applies — and why transferring ownership is far more tax-efficient than a sale.*
Legend: ✅ confirmed · 🟡 check the detail · 🔴 clarify case by case. Cross-references: 01 (EU law) · 08 (inheritance law) · 17 (co-ownership).
Extinción de condominio — the tax-efficient standard route ✅#
If both own the property in shares (proindiviso), one partner takes over the whole and buys the other out (compensación en metálico). For tax purposes this is not treated as a purchase (especificación de derechos):
- No ITP (otherwise 8–13 %!), but only AJD (Balearics ~1.5 %) — and **only on the
share taken over**. A major advantage.
- No
plusvalía municipalfor an indivisible property with monetary compensation; in the case of divorce even
expressly exempt (Art. 104.3 TRLRHL, „sea cual sea el régimen económico matrimonial"). ✅
- IRPF: as a rule no gain, provided the compensation matches the acquisition value. 🟡
Caution (TS line): if a higher, updated value is applied, the departing partner may realise a taxable gain.
Matrimonial property regime: gananciales vs. separación de bienes#
sociedad de gananciales | separación de bienes | |
|---|---|---|
| Acquired during the marriage | jointly owned | each spouse owns their own |
| On separation | formal liquidación, 50/50 | only what was bought jointly (via extinción de condominio) |
✅ Balearic peculiarity: In the absence of a marriage contract, the statutory regime is separación de bienes (Compilación DLeg 79/1990) — unlike the mainland default gananciales. → On Mallorca this often means no liquidación de gananciales, but rather extinción de condominio.
International couples: which law applies? (EU Reg. 2016/1103) 🟡#
The matrimonial property regime of international couples is governed by the EU Matrimonial Property Regulation 2016/1103 (in force since 29.01.2019). Without a choice of law, the law of the first common residence after the marriage usually applies — and that for the entire estate, including the Mallorca property.
Pitfall: Spanish law does not automatically apply to the Spanish property — for couples living in Germany it is often the German community of accrued gains. A choice of law in a marriage contract provides clarity.
Divorce abroad with a property on Mallorca#
- EU divorce (Brussels II ter, Reg. 2019/1111, since 1.8.2022): is **automatically
recognised in Spain (no Exequátur), using the EU certificate form. ✅ Third countries: Exequátur** required.
- 🟡 But: Re-registering the property in the land register requires more than the divorce judgment —
the allocation of property rights (in the convenio regulador/liquidación/extinción) must be documented in a register-ready form. → Allocate the property concretely already during the proceedings, ideally via a Spanish escritura.
Family home, action for division & mortgage#
convenio regulador: governs, among other things, the use of the family home (uso de la vivienda).
Where minor children are involved, the right of use goes to the parent who cares for them (Art. 96 CC) — ≠ ownership (to be regulated separately). 🟡 Since 4/2025 possibly MASC (out-of-court conciliation attempt).
- If one partner blocks:
acción de división de la cosa común(Art. 400 CC) — no one
has to remain in the community; an indivisible property → public auction (subasta, usually below market value → more of a means of pressure). ✅
- 🔑 Mortgage pitfall: Taking over ownership does not automatically release you from the
joint mortgage — the bank must agree (subrogación/novación). Otherwise the departed partner remains liable, even though no longer an owner. ✅
Unmarried couples & death#
pareja de hecho: no matrimonial property regime → simply co-ownership according to the shares in the land register;
dissolution via extinción de condominio/división. Less well protected — settle it by notarial deed in advance. 🟡
- Death of a co-owner: the share passes to the heirs (→ 08); unmarried partners are
often not statutory heirs → without a will, co-ownership with the deceased's relatives.
❓ FAQ#
Which tax applies if I take over the joint home? As a rule only AJD (Balearics ~1.5 %) on the share taken over, no ITP, usually no Plusvalía. IRPF only in the case of an updated higher value.
Does German or Spanish law apply to our Mallorca property? Under EU Reg. 2016/1103 often the law of the first common residence — for couples living in Germany frequently German law. A choice of law provides clarity.
My ex is blocking — what can I do? Action for division (Art. 400 CC); for an indivisible property this may end in an auction.
Sources (selection)#
- Art. 400/404/1062 CC · Art. 96 CC · Art. 104.3 TRLRHL (Plusvalía exemption) · Compilación DLeg 79/1990
- EU Reg. 2016/1103 (matrimonial property law) · Reg. 2019/1111 (Brussels II ter) · TS (IRPF on extinción de condominio)