AROUND 153'000 tax payers in the Balearics are being granted relief on the purchase of their homes the Inland Revenue confirmed yesterday, but changes are to be brought into play at the start of next year.

In the 2008 tax year, a spokesman said, the total saving for house-owning tax payers in the Islands reached 132.77 million euros.
But Central Government has announced that it is to wipe out this benefit for middle to high income earners but allowances are to be made for those who buy a home prior to the end of this year. From 1st January, 2011, said the Inland Revenue, those earning over 24'000 euros a year will lose the tax relief.

Those earning less will keep the privilege but it will be scaled according to the level of income.
Nearly 68 percent of tax payers in the Balearics declared income of under 21'000 euros for the 2008 tax year, said the Inland Revenue, including salaries and income from other business activity.


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