German entrepreneur in court: evaded millions in taxes!

German entrepreneur in court: evaded millions in taxes!

On July 7, 2025, the trial against a German entrepreneur will begin in the regional court in Palma, who will be charged together with a Spanish accomplice, presumably his lawyer. The allegations revolve around tax fraud in connection with the sale of a villa in the renowned Son Vida district of Mallorca.

The entrepreneur founded a real estate company in 2007 and purchased a property in Son Vida for around 3.4 million euros. This served as his residence. However, he sold the property to a German stock corporation in 2012 for around 6 million euros without reporting the sale to the Spanish tax office. This sale resulted in a tax amount of approximately 630,000 euros not being paid, which now has massive legal consequences.

Charges and demands of the public prosecutor

The public prosecutor's office is demanding a prison sentence of two and a half years for both defendants as well as the repayment of the tax owed along with interest. In addition, each of the defendants will be fined around 1.8 million euros. The entire process is scheduled to last three days.

The indictment accuses the entrepreneur of deliberately deceiving the tax office. The sale of the villa, which was not carried out directly but through a specific company, brought the entrepreneur six times as much as the original purchase price. This is considered serious fraud, especially since it was already clear in advance that he had withheld over 600,000 euros from the tax office.

Where the entrepreneur fled to

The entrepreneur, whose current residence is in Dubai, did not appear in court on Monday. This absence raises questions about his seriousness regarding the charges, especially given the threat of three and a half years in prison. The head of the specialist company through which the sale was carried out is also under indictment, which highlights the scope of the case and the legal problems associated with it.

Overall, this case shows how complex financial transactions in the real estate market can have far-reaching legal consequences if they are not handled transparently. Experts consider this process to be important for the legal framework in Mallorca, especially with regard to tax matters complicated by international real estate transactions.

For further information on this case we refer to Mallorca newspaper and Mallorca Magazine.