The updated maximum property price threshold to access tax benefits under the Property Transfer Tax has come into force following its official publication, with retroactive effect from March 1. This measure responds to changes in the real estate market in the Balearic Islands and aims to broaden eligibility for tax reductions linked to the purchase of a primary residence.
The new thresholds introduce differentiated increases by island. In Mallorca, the limit rises by 14 %, reaching €307,089, while in Ibiza and Formentera the increase is set at 40 %, establishing a new threshold of €378,212. This adjustment is based on objective data reflecting the rise in residential property transaction values recorded throughout 2024.
The revision has been calculated using an island-based weighted system that considers property transactions across municipalities. This methodology ensures a more balanced and consistent application of tax benefits, minimising disparities between neighbouring areas with different market dynamics.
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Increase in the maximum property price threshold to qualify for ITP tax benefits
Since the introduction of these fiscal measures in 2023, their impact on access to housing has been substantial. As of January 31, 2026, a total of 9,448 taxpayers have benefited from these reductions, generating cumulative savings of €93.7 million. These figures highlight the effectiveness of fiscal policy in supporting home ownership.
Among the beneficiaries, young individuals under 30 and people with disabilities have accessed a 100 % tax reduction, while those under 36 and certain family profiles have benefited from a 50 % reduction. Additionally, a significant number of individuals over 36 have acquired their first home under a reduced tax rate of 4 %.
Despite the increase in maximum thresholds, the tax benefit continues to apply only to the first €270,151.20 of the property value, maintaining a structured and progressive support system for buyers.