The Government of the Balearic Islands has presented a detailed assessment of fiscal measures implemented between July 18, 2023, and January 31, 2026, highlighting total savings exceeding €1 billion for residents. These policies have focused primarily on inheritance tax and property transfer tax related to first-time home purchases.
In the case of inheritance tax, a 100% exemption has been applied to groups I and II, covering transfers between parents and children, grandparents and grandchildren, and spouses. In Inca, 690 beneficiaries recorded savings of €59,237,426; in Lloseta, 182 individuals saved €313,306; and in Selva, 125 beneficiaries achieved savings of €2,955,402.
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Inca, Lloseta and Selva reflect the savings generated by the tax reform of the Government of the Balearic Islands
For group III, which includes siblings, uncles, and nephews, tax reductions of 35% or 60% have been applied depending on family circumstances. In this category, Inca registered 57 beneficiaries with savings of €471,877, Lloseta 13 beneficiaries with €315,297, and Selva 9 beneficiaries with €103,681.
Regarding property transfer tax for first-time homebuyers, several levels of tax relief have been introduced. A full exemption, with an average saving of €17,800 per taxpayer, applies to individuals under 30 and people with disabilities. In Inca, 147 beneficiaries saved €2,616,600; in Lloseta, 22 individuals saved €391,600; and in Selva, 6 beneficiaries saved €106,800.
A 50% reduction, with an average saving of €10,300, has been applied to individuals under 36, large families, single-parent households, and those supporting dependents with disabilities. In Inca, 256 beneficiaries recorded savings of €2,680,136; in Lloseta, 30 individuals saved €326,767; and in Selva, 8 beneficiaries saved €82,200.
Additionally, a reduced tax rate of 4% for individuals over 36 purchasing their first primary residence, with an average saving of €6,890, has benefited 376 people in Inca, generating €2,574,872 in savings; 40 beneficiaries in Lloseta with €259,761; and 12 individuals in Selva with €101,340.
The regional government has also updated the property price thresholds required to qualify for these benefits. Initially set at €270,151.20, the limit has been increased to €378,212 in Ibiza and Formentera, representing a 40% rise, and to €307,089 in Mallorca, a 14% increase. A further proposal aims to raise the threshold to €331,859 in Mallorca and Menorca to extend eligibility.
These measures reflect a fiscal strategy focused on reducing tax burdens, improving access to housing, and strengthening the economic capacity of families, with a measurable impact across multiple municipalities in the Balearic Islands.