On Tuesday, President Prohens announced in the Balearic Parliament that the government will approve tax breaks for landlords who do not raise rents next year.
A national law regulating rent increases expires in 2026, and there are fears that almost 25,000 tenants in the Balearics could be faced with steep increases for contracts that were signed in 2021 when activity in the rental market was subdued because of the pandemic.
The president called on owners to act "responsibly" by not raising rents, but pointed out that the deregulation of prices was a decision of the Spanish Government, which had originally introduced a cap.
Prohens was responding to the spokesperson for Més, Lluís Apesteguia, who urged her to approve measures to contain the rent increases. "They’ve been in power for three years, and rental prices have risen by 27%, while purchase prices have increased by 30%," Apesteguia stated. "That’s the result of their policies."
PSOE spokesperson, Iago Negueruela, said that these tax breaks were already included in the national law. But for them to be implemented, the Balearic Islands must be declared a stressed area, something Prohens opposes.