25 Million Euros in Focus: Matthias Kühn to Appear in Palma Court

A court hearing in Palma promises plenty to discuss

On Monday morning, October 20, 2025, the air on Via Alemania was clear and cool. Around 9:30 AM a few curious passers-by and photographers gathered in front of the courthouse — not many, but enough to feel that this is about more than just file folders. In the dock sits the German real estate entrepreneur Matthias Kühn. The accusation: He allegedly did not correctly disclose liabilities to the Spanish tax authorities amounting to around 25 million euros.

I watched the scene: hats, espresso in paper cups, a voice in the background saying: 'Let's see how this ends.' The investigations have been ongoing for more than two years. Authorities and the public prosecutor's office are examining whether money and assets within a corporate network were moved — allegedly also across companies in Spain and Liechtenstein. Whether this was merely dry bookkeeping or a clever loophole is now up to the court.

What exactly is being investigated

According to investigators, transfer movements between different companies are in focus. It is about whether this circumvented tax obligations. The court had already set a security deposit of 33 million euros. Kühn has filed an appeal against this order. Such sums naturally make headlines — and raise questions for the real estate sector.

The interrogations are scheduled for two days. Kühn will be questioned first. Afterwards, the authorities will name several more people: two sons, consultants, including the lawyer Jorge Sainz de Baranda. So it will not only be about one person but a broader network of statements and documents.

What this could mean for the island

For us on the ground, the matter remains delicate. Mallorca is defined by construction activity, investors and complex corporate structures. When criminal or tax-law questions arise, it affects not only those involved but also casts a shadow over entire projects and construction firms. At the same time: accusations are not convictions yet. The judiciary must now work step by step to determine what actually happened.

I spoke with residents: some are surprised, others not. 'You hear so much,' said a woman walking her dog on Passeig Mallorca. Indeed. In such cases, speculation often blends with facts — and that is exactly what will be sorted out in court.

The next step

The interrogations are to take place this week. Afterwards, it remains to be seen whether new lines of inquiry emerge — for example against a Liechtenstein tax office that apparently co-managed several of the affected companies. Until there is a verdict, more documents will be reviewed, co-defendants heard and legal questions resolved. For the island company, this is news to follow closely — not only because of the millions, but also because of the signal such procedures send.

I will stay on it and report as soon as new details emerge from the courtroom.