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IBI Reduction Mallorca: Familia Numerosa, Primary Residence and Energy Bonuses

Anyone who owns a property on Mallorca pays the IBI every year — the Spanish equivalent of council tax or property tax. What many people don't realise is that, depending on your residency situation, family circumstances and the energy efficiency of the property, this burden can be significantly reduced. The IBI reduction Mallorca can range from a modest partial relief for families with children all the way to a complete tax exemption for owners with a solar installation in Palma. This guide explains what discounts are available, who is eligible, how to apply in practice, and which deadlines you absolutely must not miss. You will also find out why the level of reduction varies considerably from one municipality to the next — and why second-home owners usually miss out.

IBI reduction Mallorca: Familia Numerosa & energy bonus

Could your property qualify for an IBI reduction — and which discount gets you the maximum saving?

What is the IBI — and why is every reduction worth having?

The Impuesto sobre Bienes Inmuebles (IBI) is a municipal tax levied annually on all properties in Spain. The basis for calculation is not the market value but the so-called cadastral value (valor catastral), multiplied by a coefficient set individually by each municipality.

A worked example: a villa in Alcúdia with a cadastral value of €400,000 and a municipal coefficient of approximately 0.45 % results in an annual IBI payment of between €1,600 and €2,200. In Palma or in sought-after locations with higher cadastral values, the IBI can be correspondingly higher.

Component Explanation
Cadastral value (valor catastral) Set by the national cadastre; often significantly below the market value
Municipal coefficient Each municipality sets its own; on Mallorca it varies from one municipality to another
Calculation formula Cadastral value × coefficient = annual IBI
Payment deadline Typically September–October, sometimes also payable in instalments
Responsible authority The relevant Ajuntament (town hall/municipal authority)

Because IBI revenues flow into the municipal coffers, bonificaciones (reductions) are exclusively a matter for each municipality. There is no uniform Balearic law prescribing mandatory discounts for all municipalities. Someone living in Palma therefore has different options from someone in Manacor or Sóller. It is consequently important to enquire directly with your own Ajuntament.

Note: Even if you do not pay the IBI yourself because it is handled by direct debit through a management office, the responsibility for applying for reductions rests with you as the owner. Bonificaciones are not generally granted automatically.

Familia Numerosa: How high is the IBI discount in Palma?

For large families (familias numerosas), Spanish municipal tax law provides for an optional IBI bonificación – each municipality decides whether to grant it and at what level. The Ajuntament Palma has implemented this option and, through its procedure IBI.02, offers a bonificación for families holding a título de familia numerosa.

Requirements at a glance

To apply for the Familia Numerosa bonificación in Palma, the following conditions must generally be met:

  1. Valid large-family card ( (título de familia numerosa), issued by the competent authority of the Balearic regional government
  2. The property must be the family's primary residence (vivienda habitual) – not a second home or holiday residence
  3. The owner or a family member must be registered in the Padrón Municipal (residents' register) of the municipality
  4. The application must be submitted to the Ajuntament within the relevant deadline

Please note: The bonificación expressly does not apply to second homes or rented properties. Anyone using the property as a holiday residence will not be entitled to it.

Categories of the Large Family Card

In Spain there are two tiers of the familia numerosa, which can also affect the level of potential tax benefits:

Category Requirement (children) Typical discount
General Category (categoría general) From 3 children Lower reduction
Special Category (categoría especial) From 5 children (or 4 under special circumstances) Higher reduction

The exact percentages of the IBI reduction for Palma are subject to change – therefore check the current Ordenanza Fiscal of the Ajuntament Palma or use the Sede Electrónica at seuelectronica.palma.cat for procedure IBI.02.

How to apply for the reduction in Palma – step by step

  1. Gather your documents: Large Family Card (current and valid), proof of ownership (Escritura), padrón extract, NIF/NIE of all owners
  2. Access the application form: Procedure IBI.02 via the Sede Electrónica of the Ajuntament Palma (seuelectronica.palma.cat)
  3. Submit digitally: With a digital certificate (Cl@ve) or in person at the citizens' advice office (Oficina d'Atenció Ciutadana)
  4. Mind the deadline: The exact application deadline should be confirmed with the Ajuntament Palma – check the current deadline directly with the Ajuntament to ensure the reduction applies for the entire year
  5. Await the assessment notice: Once reviewed, the reduction will be reflected in the tax assessment notice

Primary residence reduction: What applies on Mallorca?

The status as a primary residence (vivienda habitual) is a central requirement for several IBI reductions on Mallorca. This applies not only to the Familia Numerosa discount, but also to various other municipal rebates.

Comparison: IBI relief by residency status on Mallorca – primary residence, second home, solar installation, rental

Anyone using their Mallorca property as their official place of residence – meaning they are registered on the padrón, live there, and have declared the property as their primary residence for tax purposes – significantly improves their eligibility for reductions.

Situation IBI reduction possible?
Primary residence, Familia Numerosa Yes (application required)
Primary residence, solar installation/energy efficiency (Palma) Yes, up to 100% (application required)
Second home, non-residents Generally no
Rented property (long-term rental) Depends on the municipality, check individually
Non-residential property with solar installation Different rules apply (e.g. 50% in Palma)

Please note: Anyone wishing to register their primary residence for tax purposes on Mallorca should be aware of the implications for Spanish income tax (IRPF) and the Balearic wealth tax. Find out more in the guide to wealth tax in Spain.

Energy-efficiency IBI bonus: Up to 100% in Palma

The most remarkable reduction currently available on Mallorca relates to energy improvements. The Ajuntament Palma has resolved to grant property owners who equip their property with thermal or electrical energy efficiency systems a reduction of 100% of the IBI.

This regulation has been in effect since 1 January 2023 – previously the rate was 50 %.

What counts as an eligible installation?

Recognised systems are installations that use natural resources to regulate temperature or generate electricity. The best-known example is photovoltaic solar panels. Other systems for harnessing renewable energy may also be recognised.

Anyone interested in installing a solar system in Mallorca will find additional information in the guide Registering photovoltaics in Mallorca.

Important restrictions of the Palma bonus

Detail Regulation
Bonus amount (residential properties) 100 % of IBI
Maximum deduction amount 12.000 €
Bonus amount (non-residential properties) 50 % of IBI
Period of validity (non-residential properties) Three years; upon renewal automatically a further three years
Requirement Proof of the installed energy-efficiency system
Scope Palma only; other municipalities have their own regulations

Please note: The 100 % bonus is capped at 12.000 €. For very high IBI amounts a residual amount remains payable. The regulation also applies exclusively to Palma – in other municipalities on Mallorca the IBI discount for renewable energy varies considerably, and not all municipalities offer such a discount at all.

Other municipalities and the IBI energy bonus

Across the Balearic Islands in general: the percentage and the mere existence of an IBI discount for renewable energy installations vary from municipality to municipality. Some municipalities also offer discounts on the ICIO construction tax (the planning permission tax for the installation) of up to 95 %, while different rules apply to the IBI discount. Always check the Ordenanza Fiscal of your municipality or enquire directly with the relevant Ajuntament.

IBI bonuses across municipalities at a glance

The following table summarises what the research specifically confirms. For municipalities where no verified data is available, we recommend enquiring directly with the respective Ajuntament.

Municipality Energy Bonus Familia Numerosa Other
Palma 100 % (residential properties, max. 12.000 €); 50 % (non-residential properties) Reduction possible via IBI.02 Application via Sede Electrónica
Alcúdia Subject to municipal by-law (check locally) Subject to municipal by-law Coefficient approx. 0,45 %
Other Municipalities Varies considerably Varies considerably Enquire directly at the Ajuntament

IBI and Solar Panels: How Do You Apply for the Bonus in Palma?

If you have installed or are planning to install a photovoltaic system or another recognised energy-efficiency system in Palma, the following steps are important:

  1. Have the installation carried out by an authorised company; obtain all required official permits (ICIO construction tax, building permit)
  2. Secure your proof of installation: installation and acceptance documents, certificate of conformity (boletín eléctrico), approval notice from the Ajuntament
  3. Submit your application: To the Ajuntament Palma, either digitally via the Sede Electrónica (seuelectronica.palma.cat) or in person
  4. Observe the deadline: The application should be submitted before the IBI filing deadline for the relevant year; confirm the exact deadline with the Ajuntament
  5. Check the annual assessment: Once approved, the bonificación is offset against the IBI notice

The energy certificate is an important basis for the energy assessment of your property – find out more in the guide Energy Certificate Spain.

What second-home owners need to know

Anyone who uses a property on Mallorca as a holiday home or second residence – meaning they are neither registered there nor have their main tax residence there – should expect that most IBI bonificaciones do not apply. As a rule, no discounts on the property tax are available for second homes.

This means: the full IBI amount is payable. For a 200-m² villa in Alcúdia with a cadastral value of €400,000 and the local coefficient of approx. 0.45 %, annual IBI costs amount to roughly €1,600 to €2,200.

On top of this come waste tax (typically €120–180 per year, depending on the municipality and property size), as well as community charges and utility costs. Detailed cost planning is essential when purchasing a holiday property.

Anyone wishing to understand the overall tax burden of a Mallorca property should also keep an eye on the purchase ancillary costs on Mallorca.

The most common mistakes with IBI reductions on Mallorca

Despite the clear regulations, many owners lose out on bonificaciones through avoidable mistakes:

Checklist: The 6 most common mistakes with IBI reductions on Mallorca – from late applications to unreneved relief

1. Failure to apply within the deadline

Bonificaciones are almost never granted automatically. Anyone who misses the application deadline loses the discount for the entire tax year. The exact deadline should be confirmed with the relevant Ajuntament.

2. Invalid or expired Familia Numerosa card

The large-family card must be valid at the time of application. An expired certificate will result in rejection.

3. Missing padrón registration

Anyone who is an owner but is not registered in the municipality's padrón cannot claim the bonificaciones tied to primary residence.

4. Missing installation documentation for the energy bonus

Without proper documentation of the solar installation (building permit, certificate of conformity), the energy bonus will not be recognised.

5. Assuming the regulation applies across all municipalities

What applies in Palma does not automatically apply in Calvià, Manacor or Pollença. Always check the Ordenanza Fiscal of your own municipality.

6. Forgetting to renew the bonificación once it expires

Some bonificaciones are time-limited. For the 50 % bonus for non-residential properties in Palma, the rule is: after three years, a new application must be submitted.

What comes next? Further tax optimisations for property owners

Those who have optimised their IBI situation should also keep an eye on other ongoing tax burdens:

Checklist: applying for an IBI reduction on Mallorca

Use this checklist before submitting your application:

  • Primary residence status confirmed: Are you registered on the padrón of your municipality?
  • Type of bonus determined: Familia Numerosa, energy efficiency, or other?
  • Responsible municipality: Requested or checked online the valid Ordenanza Fiscal at your local Ajuntament
  • Valid large-family certificate in hand (if applicable)
  • Installation documentation for solar installation complete (if applicable)
  • Deadline known: Application deadline for the current tax year enquired about and noted at the Ajuntament
  • Application route confirmed: Sede Electrónica (using Cl@ve/digital certificate) or in person
  • Copies of all documents secured
  • Tax assessment after approval checked for correct application of the bonificación

Conclusion: IBI reduction Mallorca – staying on top of it pays off

The IBI is one of the few annually recurring fixed costs where you as a property owner on Mallorca can have a genuine influence. For families with a large-family card, for primary residence holders, and above all for those who invest in renewable energies, the savings can be substantial – in Palma theoretically up to full tax exemption, capped at 12.000 €.

The crucial catch: nothing happens automatically. You need to take action, know the deadlines, and have the right supporting documents to hand. And since every municipality sets its own rules, the first step is always to check the specific Ordenanza Fiscal of your Ajuntament.

Anyone wishing to get an overview of their total tax burden as a property owner on Mallorca will find the fundamentals in the central guide IBI Tax Spain — and with a personal enquiry we can help you identify the bonificaciones relevant to your situation.

📩 Submit a personal enquiry now — We'll assess which IBI reductions are specifically applicable to your property.

Official sources

Who is eligible for the IBI Familia Numerosa discount in Palma?
Owners holding a valid Spanish large-family certificate (*título de familia numerosa*) whose property is used as their primary residence and who are registered in the Padrón Municipal of Palma. The application is processed via procedure IBI.02 on the Sede Electrónica of the Ajuntament Palma.
How large is the IBI discount for solar installations in Palma?
The Ajuntament Palma has granted a discount of 100 % on IBI for residential properties with approved energy-efficiency installations such as photovoltaic systems since 1 January 2023. The maximum deduction is capped at 12.000 €.
Does the 100 % discount also apply to non-residential buildings in Palma?
No. For non-residential properties in Palma a rate of 50 % applies, in each case for three years – with the possibility of renewal.
Do I receive an IBI reduction as the owner of a second home?
Generally not. Most IBI discounts on Mallorca are tied to primary residence. Anyone who is not registered in the Padrón and does not use the property as their permanent residence cannot usually benefit from these concessions.
Does the Palma regulation also apply in other municipalities on Mallorca?
No. IBI discounts are a municipal matter. What applies in Palma does not automatically apply in Alcúdia, Manacor, or Pollença. Each municipality sets out its discounts in its own Ordenanza Fiscal – in some cases there are no energy-related reductions at all.
Do I have to reapply for the IBI discount every year?
That depends on the individual municipality and the type of discount. Some reductions continue automatically after initial approval, while others must be renewed – for example once a time limit has expired. Always check the assessment notice and the municipal ordinance.
Where can I find the official application form for the Familia Numerosa discount in Palma?
Procedure IBI.02 is available on the Sede Electrónica of the Ajuntament Palma at seuelectronica.palma.cat. The application can be submitted digitally using Cl@ve or a digital certificate, or in person at the Oficina d'Atenció Ciutadana.
What influence does the cadastral value have on the IBI?
The cadastral value is the sole basis of assessment for IBI – not the market value. Since cadastral values on Mallorca are often considerably below market values, IBI tends to be moderate by international standards. The precise amount is calculated by multiplying the cadastral value by the municipal coefficient.