Property transfer tax revenue is up 50%. | Gemma Andreu


The Balearic government is considering a tax reduction for the purchase of second-hand homes that are sold at "average" prices.

The 2023 budget is currently being drafted, and the government is looking at both a tax cut for this type of property as well as a tax increase for luxury properties.

Over the first six months of this year, the government raised record revenue from the property transfer tax, the minister for the presidency, Mercedes Garrido, pointing out on Monday that this year's budget already includes a tax increase for luxury homes.

On properties of more than one million euros, the tax is 11.5%, having gone up from 11%. Garrido said that there is to be a study of measures that could be adopted. Between January and June, 475 million euros were raised, 52% more than in the first half of 2021.

Also on Monday, the leader of the opposition Partido Popular, Marga Prohens, drew attention to the fact that the government has received more revenue from the property transfer tax "but refuses to remove it for the youngest and for families." "They could, but they don't want to."