One of the tourist destinations par excellence in Spain wants to nip in the bud the housing problem it has been facing for years. This was made clear by the president of the Balearic Islands, Marga Prohens, during her speech in the General Policy Debate, where she guaranteed housing for all residents, and she reaffirmed this Monday with the presentation of the new Rental Insurance program (Lloguer segur)an initiative that promises to revolutionize the market with the offer of houses that are currently empty or disused at affordable prices.
In a press conference, the leader of the Government, accompanied by the Minister of Housing, Territory and Mobility, José Luis Mateo, explained that this initiative will count in a first phase with about 2,000 homes which will be offered on a rental basis to citizens with a minimum of five years of residence in the Balearic Islands and at affordable prices, that is, up to 30% below the free market price.
This amount will depend on the island on which the properties are located: in Mallorca and Menorca it will amount to a maximum of 1,050 euros per month, while in Ibiza and Formentera the maximum price will be 1,470 euros.
Through this plan, the Government will capture empty homes from small private owners, not large holders, and will guarantee the collection of rental fees and the return of the properties in the same good condition as when they were transferred.
Likewise, the autonomous Executive guarantees a seven-year rental contract and various payment advance modalities: each month, advance collection of the current year or advance payment of the 7-year duration of the rental contract for these homes by the administration. This last case will have a limited number subject to budget availability.
In addition, owners will be able to apply important tax deductions in their Income Tax return, through the 70% reduction established in Law 35/2006, of November 28, on the Income Tax of Physical Persons and partial modification of the laws on Corporate Taxes, on Non-Resident Income and on Assets (art. 23.2.b. 2°).
The Government will assume 30% of the price
Regarding the price, the Government will set a maximum amount of rent that it will pay to the owners, adapted to the reality of each island, on which the reduction that the tenants will benefit from will be applied.
Specifically, once the home has been made available to the Administration, it will pay the owners a rental price assessed by real estate agents or property managers. These maximum prices will be 1,500 euros in Mallorca and Menorca and 2,100 in Ibiza and Formentera..
Once applied the 30% price reduction that the Government will assumethe maximum prices that tenants will face will be 1,050 euros in Mallorca and Menorca and 1,470 euros in the Pitiusas.
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