Mallorca tax breaks plan aims to outlast 2028

Mallorca and the rest of the Balearic Islands could keep special tax breaks beyond 2028 under a plan to make them renew automatically. The PP will put the proposal to Parliament in Palma, Mallorca, on Tuesday. The PSIB has said it will vote in favour.

The current Balearic special tax regime, known as the REB, expires in 2028. It offers incentives intended to offset the extra costs of being on islands. PP parliamentary spokesman Sebastià Sagreras said there was no reason for the system to end while the costs linked to island life remained.

The party also wants to widen an investment reserve so that buying, promoting, renovating and building homes can qualify for incentives. Sagreras drew a clear limit: the tax advantages would not apply to holiday use.

The PP wants the proposal admitted for debate, amended with input from other parties and sent to the Congress of Deputies with the broadest possible backing. PSIB spokesman Iago Negueruela said his party would support it, but accused the PP of failing to work with Spain’s central government to deliver the change.

Topics: Politics

Source: Europa Press / Mallorca.com