Mallorca hotel revamps: small firms could get 35% aid

Mallorca, in the Balearic Islands, has a potential source of help for small hotel businesses planning a refurbishment: regional grants can cover up to 35% of eligible spending. But they must apply before work starts or equipment is bought, consultancy FI Group warned on 10 November. The grants also cover eligible projects at rural accommodation and leisure businesses across the Balearic Islands.

Apply before work begins

The grants cover up to 25% of eligible investment for medium-sized firms and 15% for large ones. Projects must involve at least €900,000 of eligible spending on building work, equipment and installations. At least 25% of the budget must come from the business’s own funds or financing outside public aid.

FI Group says starting work or buying equipment before formally applying can rule a business out of a regional grant. Raquel Marco, who leads the consultancy’s strategy and development work in the Balearic Islands, says applying too late is a bigger obstacle than the quality of the project.

Energy and technology offer other routes

Work on air conditioning, lighting, insulation and energy management can bring another return. FI Group says verified savings can be turned into a financial benefit through energy-saving certificates.

For technology projects, the type of software matters. Off-the-shelf software may qualify for digital aid programmes, while bespoke systems or complex adaptations may qualify for corporation tax deductions of 12% to 25%. FI Group says planning building work, energy savings and technology together from the outset gives businesses a better chance of making use of the available support.

Topics: Tourism

Source: Europa Press / Mallorca.com