Balearic Middle East aid stays outside business income
Aid approved by the Balearic Government to ease the economic impact of the war in the Middle East will not be treated as business income for taxpayers. The agreement was published this week in the BOE and follows talks on a decree of 1 April 2026 covering extraordinary economic measures. The change applies across the Balearic Islands.
The Balearic Government will amend section 2 of Article 3 quinquies in the first final provision on taxes transferred by the state. The revised wording will make clear that the grants and aid cannot be included in a taxpayer’s income from economic activities.
The original text had left the door open for the payments to be counted as such income. A working group examined that difference after it was raised under a cooperation agreement between the state and the autonomous community.
Further talks on strategic projects and ports
The BOE has also announced negotiations between the Balearic autonomous community and the state over differences concerning the law designed to speed up strategic projects. One of the points under discussion is the creation of the professional category of general health psychologist.
Separate talks will begin over several articles in the amended ports law, including rules on the duration of concessions.
Source: Europa Press / Mallorca.com