The increase in the maximum housing price to qualify for ITP bonuses comes into effect
The value of 270,151 euros increases by 40% in both Ibiza and Formentera, to 378,212 euros, and by 14% in the case of Mallorca, to 307,089 euros.
PalmThe Balearic Government has increased the maximum property price threshold for eligibility for tax breaks under the Property Transfer Tax (ITP). With the publication this Tuesday in the Official Gazette of the Balearic Islands of the order issued by the First Vice President and Minister of Economy, Finance, and Innovation, Antoni Costa, the threshold of €270,151 has been raised by 40 percent in both Ibiza and Formentera, to €378,212, and by 14 percent in Mallorca. The change is retroactive to March 1st. The President of the Balearic Government, Marga Prohens, announced this measure during the recent General Policy Debate, with the aim of facilitating access to first-time homeownership for those facing the greatest difficulties, as the Ministry recalled in a press release. Once the report from the Balearic Islands Housing Observatory on home purchase and sale values in 2024 was completed, it was confirmed, using official and objective data, that these values increased across a significant portion of the territory. To benefit a broader segment of the population, it was decided to increase the weighted values by island, rather than by municipality, taking into account the transactions carried out in each municipality. This avoids situations of inequality between neighboring municipalities, as the average transaction value per municipality would have a smaller relative weight in the final result for each island.