The measure has facilitated access to housing with a saving of 6.4 million euros from July to December.

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More than 640 taxpayers have benefited from tax rebates

Tax rebates on the purchase of the first habitual residence
240 taxpayers have applied for the 100% rebate, and 403 have benefited from the 50% reduction.

The tax rebates on the purchase of the first habitual residence that the Govern de les Illes Balears launched last July 18 has allowed, at the close of 2023, 643 taxpayers to have saved 6.4 million euros. Of these, 240 have obtained a 100% rebate, given that they are either young people under 30 years of age or have a disability equal to or greater than 33%. Here, the savings amounted to 2.64 million euros, with an average of 11,000 euros per taxpayer.

The remaining 403 make up the group that has benefited from the 50% rebate: young people under 36 years of age, taxpayers with disabled dependents, and large and single-parent families. In this case, the savings amounted to 3.76 million euros (9,330 euros per taxpayer).

This was one of the two major measures of the tax reform initiated in July, with the main objective of increasing the disposable income of the citizens of the Balearic Islands. On the other hand, until January 25, the elimination of inheritance and gift tax (ISD) for groups I and II (between ascendants, descendants and spouses) has allowed 2,154 families in the Balearic Islands to save 35.87 million euros, which means an average of 16,613 € for each case. These figures include both inheritance by death and inheritance during life through inheritance agreements, a figure of civil law deeply rooted in the Balearic Islands.

In addition, these 2,154 cases mean that eight out of ten taxpayers have chosen to apply the rebate. On the other hand, only 551 families have chosen to pay the tax, with a total income of 929,797 € (1,687 € on average).

Tax reform

It should be recalled that the tax reform was also extended with the reduction in the autonomous community bracket of the personal income tax (IRPF) of 0.5 points for incomes below 30,000 € (3 out of 4 taxpayers are in this threshold), and of 0.25 points for incomes above this amount, making this tax more progressive and helping middle and low incomes to a greater extent. The estimated impact is 45 million Euros per year.

With the approval last November of the bill stemming from the decree of July 18, and last December of the general budgets of the autonomous community for 2024, the green light has also been given to numerous deductions, a fact that makes it possible that the income tax return to be filed in the coming months will be the one with the most deductions to be applied, and the one to which more taxpayers will apply these deductions.