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Buying your first home in Mallorca under 36: what the new Balearic tax plan means

4 days ago
4 min read

If you are under 40 and dreaming of making Mallorca your home, an announcement from 20 October is worth a careful read. In the Balearic parliament's annual policy debate, regional president Marga Prohens said that buyers under 36 will no longer pay regional taxes when they buy their first home. It is good news, but for now it is a promise, not a law. Here is what we know, what is still missing, and what it means if you are moving here from abroad.

What was announced

According to the Balearic press, the tax package includes:

  • 0% transfer tax (ITP) and stamp duty (AJD) on a first home for buyers under 36 and for people with disabilities.

  • A 50% reduction in both taxes for buyers aged 36 to 40.

  • A 50% reduction in stamp duty on the mortgage deed for the same groups, provided the saving is passed on as a cheaper loan.

  • A new regional income tax deduction for savings accounts used to buy a first home.

  • More public guarantees for young buyers' mortgages, up from €30 million to €45 million.

ITP is the tax you pay when you buy a resale property in Spain. AJD applies to the deed of a new-build purchase and to the mortgage deed. Both are set by the regional government, which is why the Balearic Islands can change them.

How it works today

The islands already offer reduced rates for a main home. In short:

  • The standard ITP scale runs from 8% to 13%, depending on the price band.

  • A qualifying main home is taxed at a reduced 4%.

  • Buyers under 36, and some other groups, pay 2%.

  • Buyers under 30 can get a 100% relief if they meet income limits, have lived in the Balearics for the previous three years and finance the purchase with a mortgage.

All of these reliefs apply only below a maximum property value, updated by the regional tax department in March 2026. Above it, the standard scale applies.

To put it in numbers: on a €300,000 resale home, the standard 8% rate means around €24,000 in tax. Bringing that to zero is a real difference when you are starting out.

Stone house with green shutters in a Mediterranean village

What is still unknown

The measure has not yet been published in the Balearic Official Gazette (BOIB) and has no start date. Before relying on it, we need to know:

  • The legal route and timing: an urgent decree or the 2027 budget law, and from when it applies.

  • The conditions: whether today's price caps, income limits and prior-residence rules will still apply.

  • The date that counts: age is normally assessed on the day of the deed, not on the day you sign the reservation or deposit contract.

  • What "first home" means: currently you must not own another home and must live in the property as your main residence for a minimum period.

Moving to Mallorca from abroad?

This is where many international buyers get caught out. These reliefs are linked to your main residence, not to your passport. If you are buying a holiday home and will remain resident in Germany or the UK, you should expect to pay the standard scale.

If, on the other hand, you are relocating and the property will be your main home, you may qualify once the new rules are in place, as long as you meet the other conditions. Getting your NIE, registering as a resident and planning the timing of your purchase all play a part.

A practical checklist for the coming months

  1. Budget for two scenarios: today's rules and the announced ones. Do not rely only on the second.

  2. Check your age against the signing date: if you are close to 30, 36 or 40, timing matters.

  3. See whether you already qualify: the under-30 relief and the 2% rate exist now.

  4. Build realistic deadlines into the deposit contract (contrato de arras) if you want room to wait for the new law.

  5. Look at the building, not only the tax: an underestimated renovation can wipe out the saving. A technical visit before you buy gives you a reliable figure.

How Coast Projects can help

Coast Projects combines real estate law and renovation project management under one roof. Mar, our lawyer, reviews the legal and planning status of the property, explains which taxes apply to you and handles the paperwork, from your NIE to the deposit contract and the deed. Julián, our project manager, assesses the condition of the home and the real cost of a renovation before you commit.

Thinking of buying your first home in Mallorca? Get in touch and we will look at your situation together. We will update this article once the new rules are published.

This article is for general information only and is not legal or tax advice. Every purchase has its own requirements, so please seek advice on your specific case.

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