The Finance and Budget Committee of the Balearic Parliament has rejected on Monday a non-legislative proposal (PNL) that claimed to extend the reduced rate of 2% in the transfer tax (ITP) and documented legal acts to citizens over 36 years old.
The initiative, presented by the PSIB-PSOE, was defended by the deputy Llorenç Pou, who argued that the current age limitation is a discrimination in access to housing. “You can not discriminate against citizens on the basis of age when it comes to a basic right such as housing,” he argued during his speech.
The proposal was rejected with seven votes against by PP and MÉS per Mallorca, while Vox and Més per Menorca opted for abstention (two votes). The Socialists voted in favor of the PNL, adding four supports.
The text urged the Govern to modify the application of the reduced rate of 2% so that it is not limited exclusively to those under 36 years of age, but may also be extended to persons of that age or older who meet the requirements established in Article 10.d of Legislative Decree 1/2014, which regulates the taxes ceded by the State in the Balearic Islands.
Currently, this tax rebate is reserved for young people, a measure that the PSIB considers insufficient in a context of strong increase in housing prices, especially on islands like Ibiza, where access to home ownership is increasingly complicated regardless of the age of the buyer.
Projected changes in ITP reduction
The refusal to extend the reduced rate of ITP to those over 36 years of age occurs in parallel to the adjustments that the Balearic Government is preparing in favor of young buyers, especially in stressed markets such as Ibiza.
As La Voz de Ibiza published two weeks ago, the regional government has confirmed that it will raise to 378,000 euros the maximum price of the property for those under 36 years of age to qualify for tax credits, compared to the current limit of 270,151 euros, which is totally outdated for the island.
The updating of the ceiling – the legal maximum of 40% expansion –is pending the report of the Housing Observatory, which will determine the areas where it will be applied, including Ibiza, although without a specific date.
With this new limit, the Government hopes that more young people can benefit from the total exemption of ITP (under 30 years) or the reduced rate of 2% (between 30 and 36), in a market where used housing is close to 7,600 euros per square meter.
