Mallorca: two first-home taxes could go for under-36s

Mallorca, in the Balearic Islands: buyers under 36 could pay no regional purchase taxes on their first home under a new proposal. Balearic Islands president Marga Prohens announced the plan in Palma on Tuesday, 20 October, alongside a move to put tourism tax money towards housing.

Two taxes on a first home

The proposal would remove property transfer tax and a tax on legal documents for under-36s buying their first home. Buyers aged 36 to 40 would pay half the usual amount of both taxes.

Prohens also plans to halve the tax on legal documents for mortgage loans taken out by under-36s and people with disabilities. She announced a regional income-tax deduction for young people saving for their first home, and said funding for public guarantees on young people’s mortgages would rise from 30 million to 45 million euros.

Tourism tax and housing plans

Prohens wants to change the law so money from the Sustainable Tourism Tax can go towards housing. She also announced 80 homes for healthcare workers on Ibiza and 40 for teachers posted to Formentera.

The Balearic Islands government plans to present a new housing plan before the end of the year. It will bring together 50 measures already approved and 50 proposals for 2027 to 2031. Among them is help to turn empty homes into affordable rentals for people who have lived in the Balearic Islands for at least five years.

Topics: Housing · Politics · Palma

Source: Europa Press / Mallorca.com