The Balearic Government will offer a tax deduction of around 2,000 euros to homeowners who, in the 2026 rental contract reviews, do not increase rents above the Consumer Price Index (CPI). The measure, promoted by the autonomous Executive, seeks to contain the escalation of rental prices in the Balearic Islands and is already at an advanced stage of design.
The spokesman of the Executive and Minister of Economy, Finance and Innovation, Antoni Costa, has detailed this initiative in the press conference after the Consell de Govern held this Friday, in which he confirmed that the bonus will be applied per taxpayer and will have an approximate amount of 2,000 euros. The objective, as he explained, is to “try to moderate the increase” of the rents during the next year.
Measure announced by Marga Prohens
The tax deduction was previously announced by the president of the Govern, Marga Prohens, during the last plenary session of the Parliament, as part of a package of actions to encourage price containment in the rental market. The proposal aims to encourage landlords to freeze or limit contract increases in a context of strong pressure on housing.
CPI as a ceiling
The maximum limit of increase allowed to access the deduction will be the CPI, has stressed Costa, who has remarked that the design of the bonus is “quite advanced”. This measure is part of the Government’s strategy to alleviate the impact of the rising cost of rent in the Balearic Islands, a community particularly affected by the tension in the real estate market.
