The Balearic Government is finalizing a tax deduction with which it intends to encourage landlords not to raise the rental price in those contracts that are reviewed throughout 2026. This was announced Tuesday by the Minister of Housing, Territory and Mobility, José Luis Mateo, during the plenary session of the Parliament, in response to a question posed by the Socialist deputy Mercedes Garrido.
The initiative arises from the forecast that, according to data from the Ministry of Consumer Affairs, about 24,000 rental contracts will end next year in the Balearic Islands, which could lead to an average increase of up to 4,615 euros per year in rental prices. A situation that has generated concern in the opposition and has focused part of the parliamentary debate.
Incentivizing rather than limiting
During his speech, the minister defended the Government’s strategy against the criticism of the PSIB, stressing that the regional executive is committed to encourage and not prohibit. “This Government will adopt new measures in the face of the rent review. We are committed to encourage, not to limit the market supply,” said Mateo.
In this regard, he advanced that the Regional Ministry of Economy, Finance and Innovation is already working on a specific tax deduction for owners who maintain rental prices in contracts ending in 2026. The objective, as he explained, is to contain prices without causing counterproductive effects, such as those that, in his opinion, derive from direct market intervention.
Criticism of Consumption data
Mateo has also questioned the figures provided by the Ministry of Consumer Affairs, describing as “not serious” that the PSIB uses data that, as he recalled, have been rejected by the Minister of Housing, Isabel Rodriguez. This exchange of statements has evidenced the political tension surrounding the management of the housing crisis in the Balearic Islands.
Other housing measures
Beyond the future tax deduction, the minister used his speech to defend the set of measures promoted by the Government to facilitate access to housing and contain rental prices. “We are putting all the tools at our disposal, studying legally viable and effective measures to solve a problem that has been brewing for years,” he said.
Among these actions, Mateo highlighted the Strategic Residential Projects (PRE), one of the initiatives most questioned by the opposition, which doubts that they can materialize before the end of the legislature. The councilor has responded by assuring that two PRE have already entered the City Council of Palma and that there are three others in the pipeline, which would allow the construction of more than 4,000 homes, of which 2,000 would be affordable for residents.
“We are fully aware of the complexity of the situation, but we act seriously and with viable measures,” Mateo concluded, reaffirming the Government’s roadmap in one of the main social concerns of the Balearic Islands.
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