Tax incentives of 1,800 euros for getting Mallorca's empty homes onto the rental market

An amendment to legislation currently being processed will include incentives

There are an estimated 80,000 empty homes in Mallorca | Photo: Archive

Andrew EdePalma06/09/2024 08:52

The Balearic Government is to offer tax incentives ranging from 440 euros to 1,800 euros in an attempt to get empty homes onto the rental market and to create a larger stock of homes for long-term rental.

An amendment to its administrative simplification decree law, which is currently being processed by parliament, will include a tax deduction of 1,800 euros for owners who rent out properties via the government. It has previously been announced that the government will act as a sort of rental agency in providing guarantees under its Safe Rental programme.

A condition of this incentive is that homes will need to have been empty for at least two years. It has been estimated that there are around 105,000 empty homes in the Balearics, one sixth of all dwellings. In Mallorca specifically there are some 80,000.

A reason for these properties being empty is said to be a reluctance on behalf of owners to rent out because of a lack of guarantees.

A deduction of 1,500 euros is to be offered for making empty homes available for long-term rent but without doing this via the government's programme. There will be a further deduction of 440 euros for taking out insurance against non-payment of rent.

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2 comments

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Charles Dalrymple-Chumley | 10 months ago

Won't work. I'll say this AGAIN in case anyone from the The Balearic Government is reading. Until you remove the Government's open support for squatters and until you declare that squatters have no rights of tenancy or to remain, you won't encourage owners to put their properties on the rental market. Tax incentives, bonuses, gifts, honorary titles.....none will be as powerful as the Government doing the right thing and saying if you squat or you don't pay your rent, you're out of the property. It's the Government's call.

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Marvin Le Martian | 10 months ago

Wouldn’t it be simpler and a far more positive signal to change the laws that currently give squatters more rights than property owners? I doubt a 1800€ bribe will persuade many to rent, considering the far greater financial (and emotional and psychological) consequences of having non-payers lodged in your property.