Vicens Advisors – InsightsTax and legal updates in the Balearic Islandshttps://www.vicensadvisors.com/en-GBInheritance Tax in Mallorca and the Balearic Islands 2026: a complete guide for heirshttps://www.vicensadvisors.com/en/blog/inheritance-tax-balearic-islands-2026-guide/https://www.vicensadvisors.com/en/blog/inheritance-tax-balearic-islands-2026-guide/Inheritance tax in Mallorca (Majorca) and the Balearic Islands in 2026: 100% relief for children and spouses, 60% or 35% for siblings, deadlines.Thu, 05 Nov 2026 09:00:00 GMTBalearic civil law reform: spouses and stable partners will be able to agree a definicióhttps://www.vicensadvisors.com/en/blog/spousal-definicion-succession-agreements-balearic-islands/https://www.vicensadvisors.com/en/blog/spousal-definicion-succession-agreements-balearic-islands/The Balearic Islands will let a spouse waive the forced share in exchange for a lifetime gift from the other. What it is, who it covers and how it is taxed.Wed, 04 Nov 2026 09:00:00 GMTWealth planning in Mallorca: what a foreign resident or non-resident should reviewhttps://www.vicensadvisors.com/en/blog/wealth-planning-mallorca-residents-non-residents/https://www.vicensadvisors.com/en/blog/wealth-planning-mallorca-residents-non-residents/A wealth review guide for foreign residents and non-residents in Mallorca: tax residence, taxes, form 720, inheritance and wills.Tue, 27 Oct 2026 10:30:00 GMTGrants and aid for businesses in the Balearic Islands: how they work, what they require and mistakes that lose themhttps://www.vicensadvisors.com/en/blog/subsidies-grants-businesses-balearic-islands/https://www.vicensadvisors.com/en/blog/subsidies-grants-businesses-balearic-islands/How aid for businesses and the self-employed works in the Balearic Islands: requirements, de minimis, justification, repayment and common mistakes.Fri, 16 Oct 2026 09:00:00 GMTAccounting and financial control for SMEs: obligations to meet and what to monitor during the yearhttps://www.vicensadvisors.com/en/blog/accounting-financial-control-smes-spain/https://www.vicensadvisors.com/en/blog/accounting-financial-control-smes-spain/A company's accounting obligations, the financial-year calendar, abridged accounts, the consequences of not filing accounts and financial control basics.Tue, 06 Oct 2026 09:00:00 GMTDonations from parents to children in the Balearic Islands: requirements, deadlines and real costhttps://www.vicensadvisors.com/en/blog/donations-parents-children-balearic-islands/https://www.vicensadvisors.com/en/blog/donations-parents-children-balearic-islands/How to donate to a child in the Balearic Islands: 100% deduction in Inheritance and Gift Tax, deed requirements and the donor's income tax.Fri, 25 Sep 2026 09:00:00 GMTFamily holding companies in Spain: a tax guide to reorganising the family businesshttps://www.vicensadvisors.com/en/blog/family-holding-company-spain-tax-guide/https://www.vicensadvisors.com/en/blog/family-holding-company-spain-tax-guide/What a family holding is, when it makes sense, how to set it up tax-neutrally (FEAC regime) and what the Wealth and Inheritance Tax reliefs require.Mon, 14 Sep 2026 09:00:00 GMTInspections of Large Fortuneshttps://www.vicensadvisors.com/en/blog/inspections-large-fortunes-family-business-exemption/https://www.vicensadvisors.com/en/blog/inspections-large-fortunes-family-business-exemption/Inspections of large fortunes are surging. The key is not whether the family business exemption applies, but what percentage of the shares it covers.Thu, 03 Sep 2026 15:49:36 GMTRegistry closure and revocation of the NIFhttps://www.vicensadvisors.com/en/blog/registry-closure-nif-revocation-spanish-companies/https://www.vicensadvisors.com/en/blog/registry-closure-nif-revocation-spanish-companies/What happens when a company stops filing its accounts and Corporate Income Tax returns: registry closure, NIF revocation and frozen assets.Mon, 10 Aug 2026 07:51:48 GMTInvestment reserve: the TEAC concludes that keeping the asset is not enough if the reserve disappears from the balance sheethttps://www.vicensadvisors.com/en/blog/investment-reserve-teac-balance-sheet-retention/https://www.vicensadvisors.com/en/blog/investment-reserve-teac-balance-sheet-retention/TEAC ruling 9105/2024: the investment reserve (RIC) must remain on the balance sheet throughout the entire asset maintenance period.Tue, 28 Jul 2026 08:34:10 GMTThe DGT Clarifies the Scope of the Tax Credit for Financing Audiovisual Productionshttps://www.vicensadvisors.com/en/blog/audiovisual-production-financing-tax-credit-v0905-26/https://www.vicensadvisors.com/en/blog/audiovisual-production-financing-tax-credit-v0905-26/Binding ruling V0905-26: the DGT clarifies the scope of the Article 39.7 CIT tax credit for financing audiovisual productions and its limits.Tue, 28 Jul 2026 07:45:35 GMTThe Spanish Tax Agency's AI: What It Already Does in Income Tax and Corporate Tax, and Why Keeping It Secret Matters to Taxpayershttps://www.vicensadvisors.com/en/blog/spanish-tax-agency-artificial-intelligence-secrecy/https://www.vicensadvisors.com/en/blog/spanish-tax-agency-artificial-intelligence-secrecy/The Spanish Tax Agency already uses AI in tax returns and audits. We explain what it does, why it stays secret and what safeguards taxpayers have.Thu, 09 Jul 2026 08:11:34 GMTHolding companies in the family business: when the exemption is losthttps://www.vicensadvisors.com/en/blog/holding-family-business-exemption-wealth-tax/https://www.vicensadvisors.com/en/blog/holding-family-business-exemption-wealth-tax/If a shareholder sets up a holding and hands it the management, the rest of the family may lose the Wealth Tax exemption. DGT Binding Ruling V0354-26.Thu, 18 Jun 2026 08:21:42 GMTCompany and shareholder: dividends or salary?https://www.vicensadvisors.com/en/blog/company-shareholder-dividends-or-salary/https://www.vicensadvisors.com/en/blog/company-shareholder-dividends-or-salary/Dividends or salary: a decision that affects personal income tax, corporate income tax and Social Security. No single answer fits every shareholder.Tue, 09 Jun 2026 20:50:22 GMTThe DGT clarifies how income is computed in the year a holding company is incorporated for the purposes of the Wealth Tax exemptionhttps://www.vicensadvisors.com/en/blog/wealth-tax-exemption-holding-income-year-of-incorporation/https://www.vicensadvisors.com/en/blog/wealth-tax-exemption-holding-income-year-of-incorporation/The DGT (V0145-26) excludes salaries paid by the subsidiaries before the holding was set up from the 50% test. What it requires and how to document it.Tue, 05 May 2026 08:47:38 GMTBuying a Property with Inheritance Tax Debts: The Supreme Court Sets Key Doctrinehttps://www.vicensadvisors.com/en/blog/buying-property-inheritance-tax-debts-supreme-court-ruling/https://www.vicensadvisors.com/en/blog/buying-property-inheritance-tax-debts-supreme-court-ruling/The Supreme Court sets doctrine on the charge attaching to properties for Inheritance Tax (ISD): buying a property with inheritance tax debts.Wed, 22 Apr 2026 12:25:59 GMTSpanish Income Tax Return 2025: Everything to Check Before 30 Junehttps://www.vicensadvisors.com/en/blog/spanish-income-tax-return-2025-what-to-check-before-30-june/https://www.vicensadvisors.com/en/blog/spanish-income-tax-return-2025-what-to-check-before-30-june/Complete guide to the 2025 Spanish tax return: new IRPF rules, common mistakes and key deductions to help you file your income tax return correctly.Wed, 08 Apr 2026 14:28:32 GMTVAT small business exemption: advantages and disadvantageshttps://www.vicensadvisors.com/en/blog/vat-small-business-exemption-scheme-pros-cons/https://www.vicensadvisors.com/en/blog/vat-small-business-exemption-scheme-pros-cons/The debate on the VAT small business exemption scheme, or “franchised VAT”, is back in the media. We analyse its advantages and disadvantages.Fri, 27 Mar 2026 21:37:04 GMTFamily Businesses and Real Estate Leasing in Spain: Supreme Court Clarifies the “Employee Requirement”https://www.vicensadvisors.com/en/blog/employee-requirement-real-estate/https://www.vicensadvisors.com/en/blog/employee-requirement-real-estate/Spain's Supreme Court (rulings 167/2026 and 186/2026) clarifies the employee requirement for family businesses that lease property. Impact on tax reliefs.Fri, 20 Mar 2026 08:21:03 GMTBalearic Islands increase tax relief thresholds for primary residence acquisitionshttps://www.vicensadvisors.com/en/blog/balearic-islands-increase-tax-relief/https://www.vicensadvisors.com/en/blog/balearic-islands-increase-tax-relief/Tax incentives for buying a home in the Balearic Islands in 2026: ITP, AJD and ISD on a main residence, new limits by island and requirements.Thu, 19 Mar 2026 14:18:49 GMTPartial Demerger of a Leasing Business: Technical Review of Binding Tax Ruling V1956-25https://www.vicensadvisors.com/en/blog/partial-demerger-real-estate/https://www.vicensadvisors.com/en/blog/partial-demerger-real-estate/Analysis of the Spanish tax treatment of partial demergers involving real estate leasing activities and the application of the FEAC neutrality regime.Tue, 10 Mar 2026 10:24:25 GMTSpecial regime for residential letting companies and the 4% VAT rate: Binding Ruling V1826-25https://www.vicensadvisors.com/en/blog/special-tax-regime-for-companies-letting-residential-property-spanish-cit-and-the-4-vat-rate/https://www.vicensadvisors.com/en/blog/special-tax-regime-for-companies-letting-residential-property-spanish-cit-and-the-4-vat-rate/DGT binding ruling V1826-25: requirements of the special regime for residential letting companies in Spanish Corporate Income Tax and the 4% VAT rate.Wed, 18 Feb 2026 17:37:06 GMTSpanish Supreme Court Clarifies Depreciation Rules for Capital Gains on Rental Propertieshttps://www.vicensadvisors.com/en/blog/spanish-supreme-court-clarifies-depreciation-rules-for-capital-gains-on-rental-properties/https://www.vicensadvisors.com/en/blog/spanish-supreme-court-clarifies-depreciation-rules-for-capital-gains-on-rental-properties/The recent Supreme Court Judgment 5416/2025, of 20 November, has represented a significant interpretative shift in the taxation of the sale of propertiesMon, 26 Jan 2026 09:39:43 GMTSpanish Court Grants Non-EU/EEA Landlords the Right to Deduct Rental Expenses (National Court Judgment 636/2021, 28 July 2025)https://www.vicensadvisors.com/en/blog/spanish-court-grants-non-eu-eea-landlords-the-right-to-deduct-rental-expenses-national-court-judgment-636-2021-28-july-2025/https://www.vicensadvisors.com/en/blog/spanish-court-grants-non-eu-eea-landlords-the-right-to-deduct-rental-expenses-national-court-judgment-636-2021-28-july-2025/Spain's National Court lets non-EU/EEA landlords deduct rental expenses from Non-Resident Income Tax (IRNR). What it means and how to claim a refund.Sun, 25 Jan 2026 17:28:12 GMTThe Constitutional Court Upholds the Minimum Instalment Paymenthttps://www.vicensadvisors.com/en/blog/constitutional-court-upholds-minimum-instalment-payment/https://www.vicensadvisors.com/en/blog/constitutional-court-upholds-minimum-instalment-payment/Spain's Constitutional Court upholds the minimum instalment payment in Corporate Income Tax (Forms 202 and 222) and what it means for companies.Thu, 04 Dec 2025 17:07:00 GMTThe Supreme Court confirms that non-residents can apply the combined limit in Wealth Taxhttps://www.vicensadvisors.com/en/blog/non-residents-combined-limit-wealth-tax-supreme-court/https://www.vicensadvisors.com/en/blog/non-residents-combined-limit-wealth-tax-supreme-court/Spanish Supreme Court judgment 1372/2025 lets non-residents apply the combined limit in Wealth Tax: reasoning, impact and refund of excess tax.Tue, 18 Nov 2025 11:37:07 GMTNew Corporate Income Tax Rates from 2025https://www.vicensadvisors.com/en/blog/corporate-income-tax-rates-2025-spain-reform/https://www.vicensadvisors.com/en/blog/corporate-income-tax-rates-2025-spain-reform/Law 7/2024 phases in lower Corporate Income Tax rates from 2025 to 2029. Who qualifies, how the Balearic RIB works and other combinable incentives.Thu, 23 Oct 2025 17:29:30 GMTLifetime Usufruct over Company Shares and Wealth Taxhttps://www.vicensadvisors.com/en/blog/lifetime-usufruct-shares-wealth-tax-exemption/https://www.vicensadvisors.com/en/blog/lifetime-usufruct-shares-wealth-tax-exemption/How a lifetime usufruct over company shares fits with the Wealth Tax exemption for family businesses, per DGT binding ruling V1318-25.Thu, 16 Oct 2025 16:02:31 GMTThe housing rental reduction in PIT: identifying tenants in leases with legal entitieshttps://www.vicensadvisors.com/en/blog/pit-rental-reduction-corporate-tenant-identification/https://www.vicensadvisors.com/en/blog/pit-rental-reduction-corporate-tenant-identification/The PIT rental reduction raises tax doubts when the tenant is a legal entity. The High Court of Justice of Madrid has now ruled on the point.Mon, 29 Sep 2025 10:20:00 GMTShared custody and IRPF: joint taxation and the allowance for descendantshttps://www.vicensadvisors.com/en/blog/shared-custody-irpf-joint-filing-allowance-for-descendants/https://www.vicensadvisors.com/en/blog/shared-custody-irpf-joint-filing-allowance-for-descendants/How shared custody affects Spanish IRPF: joint filing, the allowance for descendants and annual alternation, based on DGT binding ruling V1045-25.Mon, 15 Sep 2025 12:41:27 GMTThe Supreme Court Strengthens the 95% ISD Reduction for Rental Businesses: Proving the Employment Contract Is Enough, Without Justifying Its Economic Necessityhttps://www.vicensadvisors.com/en/blog/supreme-court-isd-95-reduction-rental-employment-contract/https://www.vicensadvisors.com/en/blog/supreme-court-isd-95-reduction-rental-employment-contract/The Supreme Court ruling of 14 July 2025: a full-time employment contract is enough for the 95% ISD reduction in a property rental family business.Thu, 21 Aug 2025 18:15:08 GMTLandmark Tax Reform for the Agricultural Sector in the Balearic Islands: Law 6/2025https://www.vicensadvisors.com/en/blog/balearic-agricultural-tax-reform-law-6-2025/https://www.vicensadvisors.com/en/blog/balearic-agricultural-tax-reform-law-6-2025/Law 6/2025 gives Balearic farms 99% rebates on Transfer Tax and Stamp Duty and 100% Inheritance and Gift Tax reductions. Requirements explained.Tue, 12 Aug 2025 16:35:35 GMTReform of the Inheritance and Gift Tax in the Balearic Islands: A New Landscape for Family Tax Planninghttps://www.vicensadvisors.com/en/blog/balearic-inheritance-gift-tax-reform-2025-family-planning/https://www.vicensadvisors.com/en/blog/balearic-inheritance-gift-tax-reform-2025-family-planning/From July 2025 the Balearic Islands grant up to 100% relief on parent-to-child gifts. What changes for inheritances and the PIT costs that remain.Sun, 27 Jul 2025 21:36:07 GMTWealth Tax in the Balearic Islands: €3 Million Tax-Free Allowance Also for Non-Residentshttps://www.vicensadvisors.com/en/blog/balearic-wealth-tax-non-residents-3-million-exemption/https://www.vicensadvisors.com/en/blog/balearic-wealth-tax-non-residents-3-million-exemption/Non-resident with assets in Mallorca or the Balearics? You can apply the €3m Wealth Tax allowance by filing form 714. Requirements and late filing.Mon, 21 Jul 2025 12:39:51 GMT