Inheritance lawyer in Mallorca: Balearic civil law and international estates on the island

Estates in Mallorca are governed by the Dret Civil de les Illes Balears (Balearic civil law), which includes unique institutions such as la definició, l'escreix and specific testamentary forms. They are settled before the Conselleria d'Hisenda de les Illes Balears with the region's own Inheritance Tax (ISD) rates. Mallorca has one of the highest concentrations of foreign residents in Spain: German, British, Swiss, and northern European citizens who have made the island their home, many of them in the Llevant, the Serra de Tramuntana, or the island's interior. Cross-border estates in Mallorca, involving heirs in Germany, the United Kingdom, or Switzerland, assets in multiple countries, or German wills where the deceased was resident in Mallorca, are common and require expertise in both Balearic law and private international law.

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Why BM Consulting

Specialised advice and personal service

At BMC we are specialist inheritance lawyers in Mallorca with thorough knowledge of the Dret Civil de les Illes Balears and extensive experience in cross-border estates. We manage the entire process: succession documents, asset inventory, partition deed applying Balearic civil law institutions, self-assessment of the ISD before the Conselleria d'Hisenda de les Illes Balears, municipal capital-gains tax (plusvalía) before the Palma City Council or the relevant island municipality, and registration in the Mallorca Land Registry. For estates with heirs abroad, we coordinate with German, British and Swiss lawyers as required.

  • In the Balearics, ISD relief for direct heirs is limited — there is no 99% relief as in Madrid or Andalusia — which can result in a significant tax burden.

  • Balearic civil law has its own unique institutions

    la definició, l'escreix, and the germanitat regime in Ibiza.

  • Mallorca has a large community of German, British, and Swiss residents, making cross-border estates very common.

  • The deadline for settling inheritance tax is 6 months, extendable by a further 6 months.

How we work

From first contact to case completion

  1. Documentation and succession opening

    We obtain the death certificate, the certificate of last wills (certificado de últimas voluntades) and a certified copy of the will from the Colegio Notarial de las Islas Baleares. We analyse the deceased's civil-law jurisdiction (Balearic, Catalan state or common civil law) and the applicable civil law. Where no will exists, we initiate the intestate heir declaration process in accordance with the Dret Civil de les Illes Balears.

  2. National and international asset inventory

    We compile the inventory of assets in Mallorca: properties in Palma, in the Llevant (Manacor, Porto Cristo, Cala Millor), in the Serra de Tramuntana (Valldemossa, Sóller, Deià), in the island's interior and in other municipalities. We also identify overseas assets for tax purposes.

  3. Partition deed under Balearic law

    We draft the partition deed applying the rules of Balearic civil law: la definició as an advance on the statutory share (legítima), the legítima of one third (Mallorca) or varying amounts depending on the island, the rights of the surviving spouse, and the germanitat regime in Ibiza and Formentera. For properties, the partition is executed as a public deed before a notary in Mallorca.

  4. Settlement before the Conselleria d'Hisenda and registrations

    We file the ISD self-assessment before the Conselleria d'Hisenda de les Illes Balears, applying all available Balearic reductions and reliefs. We handle the municipal capital-gains tax and the registrations in the Mallorca Land Registry.

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The problem

Estates in Mallorca are governed by the Dret Civil de les Illes Balears (Balearic civil law), which includes unique institutions such as la definició, l'escreix and specific testamentary forms. They are settled before the Conselleria d'Hisenda de les Illes Balears with the region's own Inheritance Tax (ISD) rates. Mallorca has one of the highest concentrations of foreign residents in Spain: German, British, Swiss, and northern European citizens who have made the island their home, many of them in the Llevant, the Serra de Tramuntana, or the island's interior. Cross-border estates in Mallorca, involving heirs in Germany, the United Kingdom, or Switzerland, assets in multiple countries, or German wills where the deceased was resident in Mallorca, are common and require expertise in both Balearic law and private international law.

Our solution

At BMC we are specialist inheritance lawyers in Mallorca with thorough knowledge of the Dret Civil de les Illes Balears and extensive experience in cross-border estates. We manage the entire process: succession documents, asset inventory, partition deed applying Balearic civil law institutions, self-assessment of the ISD before the Conselleria d'Hisenda de les Illes Balears, municipal capital-gains tax (plusvalía) before the Palma City Council or the relevant island municipality, and registration in the Mallorca Land Registry. For estates with heirs abroad, we coordinate with German, British and Swiss lawyers as required.

Process

How we do it

1

Documentation and succession opening

We obtain the death certificate, the certificate of last wills (certificado de últimas voluntades) and a certified copy of the will from the Colegio Notarial de las Islas Baleares. We analyse the deceased's civil-law jurisdiction (Balearic, Catalan state or common civil law) and the applicable civil law. Where no will exists, we initiate the intestate heir declaration process in accordance with the Dret Civil de les Illes Balears.

2

National and international asset inventory

We compile the inventory of assets in Mallorca: properties in Palma, in the Llevant (Manacor, Porto Cristo, Cala Millor), in the Serra de Tramuntana (Valldemossa, Sóller, Deià), in the island's interior and in other municipalities. We also identify overseas assets for tax purposes.

3

Partition deed under Balearic law

We draft the partition deed applying the rules of Balearic civil law: la definició as an advance on the statutory share (legítima), the legítima of one third (Mallorca) or varying amounts depending on the island, the rights of the surviving spouse, and the germanitat regime in Ibiza and Formentera. For properties, the partition is executed as a public deed before a notary in Mallorca.

4

Settlement before the Conselleria d'Hisenda and registrations

We file the ISD self-assessment before the Conselleria d'Hisenda de les Illes Balears, applying all available Balearic reductions and reliefs. We handle the municipal capital-gains tax and the registrations in the Mallorca Land Registry.

Dret Civil Balear
Specific civil law applicable in Mallorca
6 months
Deadline to settle inheritance tax
Limited
ISD relief in the Balearics — lower than other regions

My father, a German national, passed away at his country estate in Valldemossa. We had assets in Mallorca and in Germany and heirs in both countries. BMC handled the Spanish estate under Balearic law, coordinated with our lawyer in Munich, and ensured we did not pay inheritance tax twice. A truly specialist service.

Klaus-Dieter Hoffmann Heir residing in Germany, Mallorca, Munich

Estates in Mallorca: Balearic law, regional taxation, and international complexity

Mallorca combines three factors that make estate administration on the island particularly complex and in need of specialist advice: the Dret Civil de les Illes Balears (with its own succession institutions distinct from the Spanish Civil Code and the Codi Civil de Catalunya), the Balearic Islands’ own Inheritance Tax regulations (with reliefs more limited than in other regions), and the island’s high degree of internationality, which gives it one of the largest proportions of foreign residents in Spain.

At BMC we are specialist inheritance lawyers in Mallorca with mastery of Balearic civil law and a proven record in managing cross-border estates involving German, British, Swiss, Scandinavian, and other foreign heirs.

The Dret Civil de les Illes Balears: unique institutions in Mallorca

The Dret Civil de les Illes Balears (Legislative Decree 79/1990, as amended) establishes a distinctive succession system for each island in the archipelago, with significant differences between Mallorca and Menorca on the one hand, and Ibiza and Formentera on the other.

The Mallorcan and Menorcan compilation

In Mallorca and Menorca, Balearic succession law applies with the following principal characteristics:

Statutory share (legítima): In Mallorca, the legítima amounts to one quarter of the estate for children and descendants (where the deceased has between four and eight children) or one third (with three children or fewer). Ascendants are entitled to a legítima of one half of the estate where the deceased leaves no descendants. This structure differs from both the Spanish Civil Code (one third for all children) and the Codi Civil de Catalunya (one quarter).

La definició: This is the most distinctive institution of Balearic law. It allows a child to renounce their future statutory share — or all succession rights — in exchange for a gift or benefit received during the estate-leaver’s lifetime. The renunciation must be voluntary, informed, and executed in a public deed before a notary. La definició is widely used in Mallorca to settle the statutory share in advance and avoid future inheritance disputes.

L’escreix: A medieval institution that may be agreed in marriage settlement deeds (capitulaciones matrimoniales) and grants the surviving spouse certain rights over specific estate assets. Its application depends on whether the spouses agreed to this institution in their marriage settlement.

Inheritance subject to condition or term: Balearic law allows the institution of an heir subject to a condition or term — as well as trusts (fideicomisos) and hereditary substitutions — more broadly than common civil law.

Unique institutions in Ibiza and Formentera

In Ibiza and Formentera, Balearic succession law is even more distinctive: the universalitat de béns (transfer of all assets as a unit) and the germanitat (family community of property) are unique to the Pitiusan islands and have no equivalent in any other Spanish legal system.

Inheritance Tax in the Balearic Islands: regional tax rules

The Balearic Islands have regulatory competence over the ISD and have enacted their own rules with regional rates and reductions. Unlike Madrid (99%), Andalusia (99%), the Canary Islands (99.99%) or Murcia (99%), the Balearic relief for direct heirs is more limited.

Balearic ISD regulations apply a 50% relief on the tax liability for spouses and children under 21 (Group I), and a 25% relief for children over 21 and ascendants (Group II). These reliefs are significantly lower than in other regions, which can result in a material tax burden on high-value estates in Mallorca.

Given that properties in Mallorca — particularly in the Serra de Tramuntana (Valldemossa, Deià, Sóller), the Llevant (Manacor, Artà), or the high-demand coastal areas (Pollença, Alcúdia) — carry very high market values, ISD in the Balearics can give rise to substantial amounts. Advance succession planning is therefore especially valuable in Mallorca.

Available Balearic reductions include the reduction for principal residence, the family business reduction, and the disability reduction.

Mallorca and the German community: cross-border Spain-Germany estates

Mallorca has the highest concentration of German residents in Spain. Many German nationals have established permanent residence in Mallorca — particularly in the Llevant area, in Palma, or in the island’s interior municipalities — or own second homes on the island. When a German national dies in Mallorca, the estate may involve:

Dual jurisdiction: Assets in Spain (the Mallorcan estate) and assets in Germany (the main residence, bank accounts, shares in German companies). The estate must be administered in both countries simultaneously.

EU Succession Regulation 650/2012: If the German deceased was resident in Mallorca, Spanish (Balearic) law governs the estate. If they had chosen German law in their will (as permitted by the Regulation), German law applies. This choice has significant implications for forced heirship rights, since the statutory share under German law differs from that under Balearic law.

Double taxation: Germany levies the Erbschaftsteuer (German inheritance tax), which may also apply to Spanish-situated assets if the heirs are resident in Germany. Coordinating the Spanish Balearic ISD with the German Erbschaftsteuer is complex and requires specialist expertise. Spain and Germany do not have a specific double-taxation treaty on inheritance matters.

German wills in Mallorca: A German national resident in Mallorca may have a will executed before a German notary or a holographic will (valid in Germany if it meets German formal requirements). Using such wills in Mallorca requires apostillation, sworn translation, and in some cases an expert report on German law.

BMC handles all of these aspects by coordinating with partner law firms in Munich, Hamburg, Berlin and other German cities, providing a complete service for German families with estates in Mallorca.

Inheritance disputes in Mallorca: the most contested assets

Estates in the Serra de Tramuntana: The Serra de Tramuntana, a UNESCO World Heritage Site, is home to some of the most exclusive properties in Spain: historic Mallorcan estates in Valldemossa, Deià, Sóller, Orient, and Alaró. With market values of several million euros, these properties generate inheritance disputes when heirs have different emotional and economic ties to the asset.

Seafront apartments: Coastal areas of Pollença, Alcúdia, Cala d’Or, and Cala Major have properties whose market value has multiplied over recent decades. Disputes between heirs wishing to sell and those who prefer to retain the property are common.

Tourism and hotel businesses: Mallorca has a business sector closely tied to tourism. Estates including shares in hotels, holiday apartments, restaurants, and travel agencies require specialist valuations and careful management of the Balearic family business ISD reduction.

Investment funds and securities portfolios: Many German residents in Mallorca hold substantial investment portfolios managed from Germany or other countries. The correct valuation and disclosure of these assets in the Balearic ISD is essential to avoid subsequent tax investigations. We also advise on the potential impact of the Balearic wealth tax when inherited assets exceed the relevant thresholds.

Succession planning in Mallorca

Given the higher ISD cost in the Balearics compared with Madrid, Andalusia, or the Canary Islands, and the high values of Mallorca’s real estate assets, advance succession planning offers an exceptional return on investment on the island. Available tools include:

  • La definició balear: Settling a child’s statutory share in advance through lifetime gifts can reduce future inheritance disputes and, in certain circumstances, optimise the overall tax cost.
  • Will with family business reduction: Where the deceased holds shares in a business or tourism venture, structuring the will to meet the requirements for the 95% reduction can generate very significant tax savings.
  • Choice of governing law (Regulation 650/2012): For foreign residents in Mallorca, choosing the law of their nationality in their will may be more or less favourable than Balearic law, depending on their personal circumstances.

At BMC we offer a succession planning service tailored to the distinctive features of Balearic civil and tax law, including asset analysis, scenario modelling, and the design of the most efficient will for each family’s situation.

BMC has representation in the Balearics. Learn about our Balearic Islands office for local assistance.

FAQ

Frequently asked questions

The Balearic Islands have their own ISD regulations that apply parenthood reductions but without the 99% relief available in Madrid or Andalusia. The Balearic relief for direct heirs (Groups I and II) is significantly more limited, which can result in a substantial tax burden on high-value estates. Properties in Mallorca typically carry very high market values, which compounds the tax impact. Advance succession planning is therefore particularly important in the Balearics.
The deadline for filing the Inheritance Tax self-assessment before the Conselleria d'Hisenda de les Illes Balears is six months from the date of death, extendable by a further six months if the extension is requested before the original deadline. Late filing attracts surcharges of between 5% and 20% plus interest. For heirs abroad, managing the required documentation within the deadline can be challenging — BMC coordinates the entire process.
La definició is a unique institution of the Dret Civil de les Illes Balears by which a child may renounce their future statutory share (legítima) in advance — or all inheritance rights — in exchange for a lifetime gift from the future estate-leaver. This institution, which does not exist under the Spanish Civil Code or Catalan civil law, allows the testator to "settle" a child's statutory share during their own lifetime, reducing the risk of future inheritance disputes. La definició must be executed as a public deed before a notary, with the child's express consent.
Heirs may accept with benefit of inventory (limiting liability to the inherited assets), accept unconditionally (extending liability to their personal assets) or renounce. Where debts are known or the liabilities are uncertain, acceptance with benefit of inventory is the most prudent option. BMC analyses assets and liabilities before advising on the best course of action.
Yes. German heirs who receive assets in Mallorca must settle the Spanish ISD within six months before the Conselleria d'Hisenda de les Illes Balears. In addition, Germany may tax the same inheritance under the Erbschaftsteuer (German inheritance tax) in respect of assets transferred, depending on the applicable double-taxation treaty provisions. Spain and Germany do not have a specific double-taxation treaty covering inheritance. BMC coordinates with German lawyers to minimise double taxation.
A German holographic or notarial will can be valid in Spain if it meets the formal requirements of German law. It must be apostilled (Germany is a signatory to the Hague Convention), translated into Spanish by a sworn translator, and in some cases accompanied by a report on German succession law. BMC manages the validation of German, British, Swiss, and other foreign wills for estates in Mallorca.
The cost depends on complexity: high-value estates, heirs in multiple countries, Balearic civil law elements and disputes. BMC offers a free initial consultation and a fixed-fee quote for uncontested estates. Cross-border estate management is priced according to the specific complexity involved.

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Frequently asked questions

Questions about Inheritance Lawyer in Mallorca

The Balearic Islands have their own ISD regulations that apply parenthood reductions but without the 99% relief available in Madrid or Andalusia. The Balearic relief for direct heirs (Groups I and II) is significantly more limited, which can result in a substantial tax burden on high-value estates. Properties in Mallorca typically carry very high market values, which compounds the tax impact. Advance succession planning is therefore particularly important in the Balearics.
The deadline for filing the Inheritance Tax self-assessment before the Conselleria d'Hisenda de les Illes Balears is six months from the date of death, extendable by a further six months if the extension is requested before the original deadline. Late filing attracts surcharges of between 5% and 20% plus interest. For heirs abroad, managing the required documentation within the deadline can be challenging — BMC coordinates the entire process.
La definició is a unique institution of the Dret Civil de les Illes Balears by which a child may renounce their future statutory share (legítima) in advance — or all inheritance rights — in exchange for a lifetime gift from the future estate-leaver. This institution, which does not exist under the Spanish Civil Code or Catalan civil law, allows the testator to "settle" a child's statutory share during their own lifetime, reducing the risk of future inheritance disputes. La definició must be executed as a public deed before a notary, with the child's express consent.
Heirs may accept with benefit of inventory (limiting liability to the inherited assets), accept unconditionally (extending liability to their personal assets) or renounce. Where debts are known or the liabilities are uncertain, acceptance with benefit of inventory is the most prudent option. BMC analyses assets and liabilities before advising on the best course of action.
Yes. German heirs who receive assets in Mallorca must settle the Spanish ISD within six months before the Conselleria d'Hisenda de les Illes Balears. In addition, Germany may tax the same inheritance under the Erbschaftsteuer (German inheritance tax) in respect of assets transferred, depending on the applicable double-taxation treaty provisions. Spain and Germany do not have a specific double-taxation treaty covering inheritance. BMC coordinates with German lawyers to minimise double taxation.
A German holographic or notarial will can be valid in Spain if it meets the formal requirements of German law. It must be apostilled (Germany is a signatory to the Hague Convention), translated into Spanish by a sworn translator, and in some cases accompanied by a report on German succession law. BMC manages the validation of German, British, Swiss, and other foreign wills for estates in Mallorca.
The cost depends on complexity: high-value estates, heirs in multiple countries, Balearic civil law elements and disputes. BMC offers a free initial consultation and a fixed-fee quote for uncontested estates. Cross-border estate management is priced according to the specific complexity involved.
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