Special tax regime of the Balearic Islands

Regulations: Seventieth Additional Provision of Law 31/2022, of December 23, on the General State Budget for the year 2023

Object and temporal scope of application

A special tax regime is established for the Balearic Islands, the purpose of which is to recognize the specific and differential fact of their insularity, through the approval of a set of tax measures that, in relation to IRPF , will be applicable in the years 2023 to 2028, both included.

Spatial scope of application

This tax regime is applicable in the territorial area of the Autonomous Community of the Balearic Islands, defined in article 2 of its Statute of Autonomy, formed by the islands of Mallorca, Menorca, Ibiza, Formentera and Cabrera and by the other adjacent smaller islands.

Tax benefits provided for in this regime

The special regime for the Balearic Islands includes the following fiscal measures:

1. 1. Deduction for allocations to the reserve for investments in the Balearic Islands
2. 2. Deduction for income derived from the sale of tangible assets produced in the Balearic Islands
3. 3. Adaptation of these benefits to the provisions of European Union law: limits, monitoring and control