It warns that penalising small landlords will further reduce supply and calls for the Lloguer Segur programme to be extended to all rental properties.
The Balearic Association of National and International Real Estate Agencies (ABINI) has shown its support for the tax incentives promoted by the Balearic Government and has rejected the central government’s proposal to penalise landlords who increase their rents in their income tax returns. ABINI president Daniel Arenas has warned that ‘further penalising small landlords, who represent around 90% of all landlords, will only lead to a further reduction in supply’.
‘We understand and share the concern about access to housing, but using income tax as a punitive tool can be interpreted as indirect market intervention. When tax pressure and legal uncertainty increase, many landlords choose to withdraw their properties from the residential rental market,’ he said.
For ABINI, the structural problem in the Balearic Islands is not fiscal, but rather a lack of sufficient supply to meet growing demand. ‘Penalising without expanding the available housing stock will not resolve the underlying imbalance,’ added Arenas.
ABINI considers the incentive-based strategy to be more appropriate, although it calls for a further step to be taken. In this regard, the association is asking the regional government to extend the Lloguer Segur programme for residents who have been in the Balearic Islands for five years to all rental properties, and not just empty ones.
‘If we want to increase stable supply, we must generate confidence and guarantees for owners. More security and more incentives, not more penalties,’ concluded the president of ABINI.
