The Balearic Government has confirmed that it will raise the property price ceiling to 378,000 euros so that young people can benefit from the Property Transfer Tax (ITP) rebates in Ibiza, an island where it is practically impossible to find properties below the current limit of 270,151 euros.
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Sources from the Department of Economy, Finance and Innovation explained to La Voz de Ibiza that the total or partial exemptions from ITP are still fully in force – 100% for those under 30 years of age and 2% for buyers between 30 and 36 – and that the extension of the maximum price is already planned, but its application will depend on the data from the Housing Observatory.
“The increase to 378,000 euros will be made in the near future when the Housing Observatory determines the specific areas where the 40% increase allowed by law can be applied. What is a fact is that in Ibiza this ceiling will be updated, but we do not know when,” they said from the Conselleria.
A change that has been dragging on since the start of the year
The issue is not new. In January, this newspaper published that the Government was studying to increase the maximum value of the subsidized properties to adapt it to the areas classified as “especially stressed”, among them Ibiza. Then, the Vice President and Minister of Economy, Antoni Costa, had already advanced the intention to raise the ceiling to 350,000 euros “in a surgical way”.
However, the Autonomous Executive now recognizes that the final reference will be the legal maximum of 40%, which places the limit at 378,000 euros.
Ibiza, an inaccessible market with the current ceiling
The current limit of 270,151 euros left out the vast majority of young buyers in Ibiza, where the price per square meter is well above the Balearic average. With the new ceiling, the Conselleria expects to significantly increase the number of properties to which it will be possible to apply the total exemption or the reduced taxation of 2%.
Meanwhile, the existing subsidies continue to add beneficiaries: up to November, 2,418 people from the target groups had taken advantage of them, according to data provided by the Government itself.
Awaiting the Observatory
The key now lies in the Housing Observatory, whose analysis will serve to determine in which municipalities or areas of the Balearic Islands -Ibiza among them- the extension can be applied. The Conselleria insists that the measure will not require the approval of any law, but a regulatory development, which will facilitate its entry into force once the data is available.
Until then, the only certainty is that the Government considers the upgrade of the roof in Ibiza to be a done deal, but without a specific date.
