Mallorca housing crisis: tourist tax to help fund housing
Mallorca, in the Balearic Islands, is set to see tourist tax money go towards housing: regional president Marga Prohens announces the move on Tuesday, 20 October 2026. In Palma, Mallorca, People’s Party parliamentary spokesman Sebastià Sagreras says the islands face an exceptional housing emergency. He says unions UGT and CCOO proposed using some of the money for housing in the Sustainability Pact, and the regional government agreed.
The levy, called the Sustainable Tourism Tax (ITS), was intended to pay for measures addressing the effects of tourism across the islands, Sagreras says. Housing policy will now be another use for its revenue.
Prohens also announces plans to remove regional taxes on home purchases for people under 36. Young buyers seeking their first home are also promised mortgage guarantees through the new Young Mortgage scheme, grants of 10,000 euros and a tax deduction linked to savings accounts for a first-home purchase. A new housing plan is due to cover the next four years.
Source: Europa Press / Mallorca.com