This is old news, but I still get asked whether the wealth tax is applicable, so here is confirmation that the tax was abolished at the beginning of 2008.
The Spanish wealth tax, known is known in Spain as ‘patrimonio’ (the Impuesto sobre el Patrimonio). The tax was introduced 30 years ago and required all property owners (both residents and non-residents) to pay an annual tax based on the net value of the asset after permitted deductions such as mortgages. The tax was collected by regional governments i.e. the Mallorca Government in this instance.
For most non-resident property owners the tax bill for the wealth tax was never very big, possibly €1,000 depending on the property. The wealth tax was abolished as of 01/01/2008. All non-resident property owners who have been paying the wealth tax to date should also have an appointed fiscal representative in Spain, as required by law i.e. a gestoria, in order to ensure that the correct services and fees are in place for 2009.
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[...] There used also to be a wealth tax but this has been abolished – see : abolition of wealth tax in Mallorca. [...]