Balearic president announces plan to scrap purchase taxes for under-36 first-time buyers

What happened

On Tuesday 20 October 2026 the Balearic president, Marga Prohens, opened the yearly general policy debate in the Parlament with a package of housing and tax announcements. According to press reports of the speech, the Govern (the regional government) plans to:

• Remove transfer tax (ITP) and stamp duty (AJD) on the purchase of a first home for buyers under 36 and for people with a disability.
• Halve both taxes for first-time buyers aged 36 to 40.
• Give a 50% reduction in stamp duty on mortgage loans for the same under-36 and disabled buyers, provided the saving lowers the cost of the mortgage.
• Add an income-tax deduction for young people saving towards a first home.

She also announced a housing plan for 2027 to 2031, called HABITA_IB 4+4, with about 50 new measures, to be presented in draft before the end of the year.

What it means for foreign buyers

These reliefs are for a buyer’s first home that becomes their main residence. A holiday or second home does not qualify, and the existing reliefs already require you to live in the home. Today, buyers under 36 buying a first main home can pay 2% instead of 8% on the first part of the value, and buyers under 30 who meet strict conditions get a 100% relief on that part, within value limits that start at €331,859.70 in Mallorca since 14 June 2026 (15% higher for most under-36 buyers). Our guide to buying costs and taxes explains the current rules. If you are moving to Mallorca to live, see moving to Mallorca.

What is still uncertain

No bill had been published when the plan was announced, and the reports do not give a start date, value limits or residence conditions. Press coverage linked the package to the 2027 regional budget, which the Govern needs to pass in Parliament, where it does not have a majority of its own. If you are under 40 and plan to buy your main home in 2027, ask your lawyer to check the rules on the day you sign.

On the same day, Spain’s Council of Ministers authorised the Balearic Islands to give up to €5 million more in guarantees in 2026 under the IBAVI mortgage guarantee programme for people buying a home. See mortgages for non-residents for how Spanish home loans work.