The rental market in the Balearic Islands is one of the most stressed in Spain, with prices that have been at historic highs for years. In that sense, among the regional deductions in the Balearic Islands there is a deduction for renting a habitual residence that, in its most generous form, reaches 650 euros per year. The 2025-2026 Income campaign starts on April 8, 2026 and closes on June 30, 2026. The starting information is available in the practical manual of personal income tax 2025 for the Balearic Islands.
What distinguishes this deduction from that of other communities is its express nod to self-employed workers. Anyone who has been registered as self-employed for at least 183 days in 2025 accesses the upper section of the deduction, along with other profiles such as those under 30 years of age or people with disabilities. It is a recognition of the group of self-employed workers, which has grown steadily in the archipelago in recent years.
To apply any Balearic autonomous deduction, it is necessary to have habitually resided in the Balearic Islands during 2025. The Tax Agency considers that this requirement is met when the taxpayer has spent more than 183 days in the territory of the community during the year. The criteria to determine habitual residence appear in the electronic headquarters of the Tax Agency.
Deduction for renting the habitual residence
The official name is deduction for renting the habitual residence. Access to it requires meeting a series of conditions that should be reviewed before transferring them to the declaration.
The rented home must be the taxpayer’s usual home. Furthermore, for at least half of the tax period, neither the taxpayer nor any member of his or her family unit can be the holder of full ownership or a real right of use or enjoyment over another home located less than 70 kilometers from the rented one.
Homes that generate income from real estate capital, those located outside the Balearic Islands or those located on an island other than the one where the rental is located are excluded from this calculation. Nor can there be the right to apply the state deduction for investment in primary residence.
Regarding income limits, the sum of the general and savings tax bases cannot exceed:
- 33,000 euros in individual taxation / 52,800 euros in joint taxation, on a general basis
- 39,600 euros / 63,360 euros for large families in the general category or single-parent families with two or more children
- 42,900 euros / 68,640 euros for large families in special category
The deduction is divided into two sections according to the taxpayer’s profile. The general tranche, 15% of the amounts paid with a limit of 530 euros per year, applies to those who are under 36 years old or over 65 years old without ongoing work or professional activities.
The reinforced section, 20% with a limit of 650 euros per year, is reserved for the following profiles:
- Under 30 years
- People with a recognized disability of at least 33%
- Taxpayers entitled to the minimum due to disability of descendants or ascendants under their care
- Fathers or mothers of single-parent families with two or more children
- Self-employed workers registered for a minimum of 183 days in fiscal year 2025