Landlords who do not raise rents will receive tax breaks from the Prohens and Sánchez governments.

PalmSpanish Prime Minister Pedro Sánchez has announced that he will approve a royal decree-law in the coming weeks to incentivize landlords who do not raise rents for their tenants and to curb abuses in seasonal and room rental contracts. The Spanish government has planned a 100% deduction on Personal Income Tax (IRPF), which will complement the reductions in the regional portion of the tax that the Balearic Islands government is considering implementing.

Sources within the Housing Ministry assert that Sánchez is "drawing inspiration from the proposal" for tax deductions that Prohens presented in Parliament in December, which has yet to be implemented. "Sánchez's current focus on incentive policies demonstrates the failure of interventionist policies," say sources from the department led by José Luis Mateo, who reiterate their demand that the Spanish government "finally unblock the anti-employment law." Sources from the Finance Ministry explain that landlords who do not raise rents beyond the increase in the Consumer Price Index (CPI) will be able to save up to €2,000 on their income tax return. They also confirm that the reform will be introduced in "the first law possible, most likely the one on accelerating strategic projects," which will be processed in the coming months. The Sánchez administration has not yet released the specifics of its proposal. In addition to these deductions, the Spanish government also wants to curb exorbitant room rental prices, ensuring that the total rent for each room cannot exceed the price of a complete apartment rental agreement. Furthermore, it intends to implement control mechanisms in high-demand areas by imposing rent caps, although Prohens has refused to use this mechanism in the Balearic Islands.