Since January 1, 2025, the Balearic Islands have effectively eliminated the Inheritance and Gift Tax between parents and children, spouses, and ascendants thanks to a 100% rebate.
In other words: in these cases, inheriting or receiving a donation will be free of charge.

The most interesting aspect is that the regulation does not distinguish between residents and non-residents, making the archipelago a particularly attractive place to transfer assets—even if one lives outside of Spain.

How Properties Are Valued

Although the tax amount is zero, the law requires a value to be set for the transferred assets:

• If a cadastral reference value exists, it will be used as the taxable base.
• If not, the taxpayer may request a valuation proposal from the ATIB. Following this criterion provides security against penalties, although the Administration retains the right to verify it later.
• An external appraisal may also be submitted.

A Privileged Tax Framework

With the effective elimination of the tax and a clear system for valuing properties, the Balearic Islands position themselves as one of the most favorable destinations in Spain for inheritances and donations starting in 2025.