Ibiza property tax: €250,000 cut for rural properties

More than 5,400 rural properties in Santa Eulària des Riu, Ibiza, could share a €250,000 annual property-tax cut. The town council plans to lower the rate from 0.45% to 0.40%, if councillors approve the change. The revised rules are due to start on 1 January 2027 after the required public consultation.

The cut would be the third reduction in the rural rate for the municipal property tax, known in Spain as IBI. The rate for urban properties would stay at 0.40%.

Wider help for families and rented homes

The council also plans to widen access to existing discounts. Social housing would keep its 50% reduction for three years, but the fixed family-income ceiling of €32,000 would be replaced by a limit of four times the annual Iprem in force.

Large families would still receive a 90% discount. But the maximum cadastral value of the home allowed for the scheme would rise from €200,000 to €240,000.

A new 95% reduction is planned for limited-price homes, known as VPL, when they are rented at the regulated maximum price. The home must appear on the autonomous VPL register and be the tenant's usual, permanent residence. Properties used by their owners, put up for sale or offered on rent-to-buy terms would not qualify.

Applications open from January to March

The VPL discount would last for no more than two years. It must be claimed between 1 January and 31 March, the same application window as the other reductions.

Existing help would remain in place, including a 50% reduction for up to five tax years for certain solar or ambient-energy systems. A 50% discount for electric-vehicle charging points would continue for up to two years.

Finance councillor Miguel Tur said the third rural-tax reduction formed part of the council's effort to reduce the tax burden on local people while extending support to more families and housing measures.

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Source: Europa Press / Mallorca.com