Mallorca first-home buyers under 36 could pay no regional tax

Mallorca first-home buyers under 36 could pay no regional purchase taxes under a plan announced for the Balearic Islands. Balearic president Marga Prohens set out the proposal in Palma, Mallorca, on Tuesday, 20 October 2026. It is part of a wider package aimed at the islands’ housing shortage.

Tax cuts for first homes

The plan would remove regional property transfer tax and stamp duty for under-36s buying their first home. Buyers aged 36 to 40 would pay half the usual amount of those taxes.

Prohens also proposed a 50% stamp-duty reduction on mortgage loans for under-36s and people with disabilities. Young people saving for a first home would get a new regional income-tax deduction linked to a savings account.

More housing for island workers

Prohens said the government would change the law so money from the Sustainable Tourism Tax can go towards housing. She also announced 80 homes for healthcare workers on Ibiza, in the Balearic Islands, and 40 for teachers posted to Formentera.

The government is working on a new strategic housing plan and a pilot scheme for older people facing housing exclusion. Separately, Prohens proposed raising inheritance-tax relief to 75% for transfers between siblings or from aunts and uncles to nieces and nephews, where the person who died had no direct descendants.

Topics: Housing · Politics · Palma

Source: Europa Press / Mallorca.com