The Partido Popular Balearic Government has responded to this week's Congress vote, led by the PP and Vox, to not extend controlled rent increases of no more than two per cent per annum, by saying that its wish is that there is "no tsunami of price increases".
Vice-president and finance minister Antoni Costa has announced there will be tax incentives for owners that the government hopes will contain prices. The government will introduce a new income tax deduction of up to €800 per property and up to €2,000 in cases where more than one property is owned.
The minister also says there will be new measures to assist first-time homebuyers. The government will raise the thresholds for property transfer tax relief to €331,000 so that more citizens can benefit from tax breaks when buying their first home. It will also eliminate the 'Impuesto sobre Actos Jurídicos Documentados' (Stamp Duty) for first-time buyers under the age of 30 and the disabled.
Costa is meanwhile finalising the housing ministry's subsidies of up to €10,000 for first-time homebuyers under 40. The ministry has established a €6 million aid programme for this during the 2026-2027 period.
The political fallout from the Congress vote has been considerable, an example being that from the PSOE opposition in the Balearics who accuse the PP and Vox of "complicity" with investment funds to ensure that the extension was rejected.