What You (Don’t) Need to Worry About
Co-Ownership Without Tax Headaches
One of the biggest concerns when investing abroad is taxation. With Mallorca Homebase co-ownership model, we’ve designed everything to make personal taxation simple, transparent — and in most cases, irrelevant until you sell.
Here’s how it works:
You Own Shares — Not Real Estate
As a co-owner, you don’t personally own property in Spain.
Instead, you hold registered shares in a local Spanish S.L. that owns the home.
This has a clear benefit:
- You’re not subject to local Spanish property ownership tax as an individual.
- You’re not listed in the Spanish land registry.
- You report your shareholding to your local tax authorities — just like owning shares in a business.
What You Report in Your Home Country
Each year, you simply inform your tax authority:
- That you own XX shares in a Spanish S.L. company, listed in the public register
- How much you paid for those shares
- That you have no income or gain unless shares are sold
No income = no personal tax events.
Your ownership is passive until resale or rental income triggers otherwise.
When You Might Face Taxation
There are only two main scenarios where personal tax may apply:
-
You Sell Your Shares at a Profit
→ If you sell your shares for more than you paid, the gain is typically taxed in your country of residence as capital gain — not in Spain.
-
You Earn Rental Income from Your Weeks
→ All rentals are invoiced by the company, not you.
→ The income stays in the company and is booked to your account.
→ It reduces your shared costs — not personal income.
This means:
- No rental income tax in your name.
- No cash payments made to you.
- Just a lower annual cost.
Double Taxation? Rarely an Issue
Most EU/EEA countries — and also the UK, USA, Canada, Australia, New Zealand — have clear rules for avoiding double taxation.
Even if no formal tax treaty applies (e.g., Denmark–Spain), your ownership is not treated as income and therefore is unaffected.
You only pay personal tax if:
- You sell your shares for a profit
- You personally receive income (which does not happen in this model)
No personal ownership of real estate
No personal rental income
No yearly profit — no tax
What About Wealth Taxes or Declarations?
If your country has wealth or overseas ownership declarations, your local accountant will guide you.
In most cases, you just report the market value of your shares (your original purchase price) annually.
We will issue shareholder certificates and provide any documentation you need.
Summary – Simple, Transparent, Low-Tax
Here’s the takeaway:
- You own shares in a company — not a Spanish home
- No personal income or gain until you sell shares
- All operations are handled via the company
- Reporting is simple: shareholding + purchase value
Your tax is triggered only when you profit — and only in your home country.
Learn the Full Co-Ownership Solution
Mallorca Homebase Co-Ownership is a complete, transparent model for smart second-home ownership in Mallorca — built around legal clarity, local support, and personal freedom. Explore the full series below to understand how it works and why it’s designed for the way people live, invest, and travel today.
From Dream to Keys – How It Works
A practical guide to how we match co-owners and form your co-ownership group.
