Santa Eulària des Riu is proposing a further reduction in the municipal property tax rate for rural properties, alongside wider IBI discounts for families, protected housing and homes offered for regulated-price rental.

The proposed changes are due to be presented at the municipality's September plenary session and, subject to the full legal process, would come into force on January 1, 2027.

Rural IBI Could Fall to 0.40%

The main proposed change is a reduction in the IBI rate for properties classified as rural.

The rate is currently 0.45% and would be reduced to 0.40%, bringing it into line with the rate applied to urban properties in Santa Eulària.

According to the Ajuntament, the reduction would affect more than 5,400 cadastral references and reduce the overall tax burden by approximately €250,000 a year.

The urban IBI rate would remain at 0.40%.

Third Rural IBI Reduction Since 2022

The proposed reduction would be the third cut to the rural IBI rate made by the municipality since 2022.

In 2022, Santa Eulària reduced the rate from 0.49% to 0.47%.

A second reduction was approved in 2025, taking the rate from 0.47% to 0.45%.

The proposed 2027 rate would therefore represent a reduction from 0.49% to 0.40% over the three changes.

The Ajuntament estimates that the combined annual reduction in the tax burden from the three measures would reach around €500,000 compared with the situation before the reductions began.

New 95% Discount for Limited-Price Rental Homes

The proposed ordinance also introduces a new 95% discount on the full IBI charge for qualifying Viviendas de Precio Limitado, or VPL homes, that are actually rented under regulated maximum rents.

The measure would apply to homes registered in the Balearic Islands' VPL register and used as the tenant's habitual and permanent residence.

The rent must remain within the maximum amount established by law.

Homes used by their owners, offered for sale or rented with an option to buy would not qualify for this particular discount.

The proposed 95% reduction would apply for a maximum of two years.

Changes to Protected Housing Bonus

The municipality also wants to change an existing additional 50% IBI discount for protected housing.

The current fixed annual household-income ceiling of €32,000 would be removed.

Under the proposal, eligibility would instead be linked to four times the annual IPREM applicable in each financial year.

The existing 50% bonus would continue for three years.

Wider Access for Large Families

The IBI discount available to recognised large families would remain at 90% of the tax charge.

However, the proposed change would increase the maximum cadastral value of the property eligible for the discount from €200,000 to €240,000.

The municipality says the change is intended to allow more families to qualify for the existing reduction.

Solar Energy and Electric Vehicle Discounts Remain

Other existing IBI incentives would also remain under the proposed ordinance.

Certain solar-energy or ambient-energy systems can receive a 50% reduction for a maximum of five tax years, subject to the applicable requirements.

A 50% reduction also remains available for properties where electric-vehicle charging points are installed. That bonus can apply for a maximum of two years.

Estimated Impact on Municipal Revenue

The proposed reduction in rural IBI would reduce municipal tax revenue by approximately €250,000 per year, according to the Ajuntament's calculations.

The council has linked the measure to the series of rural IBI reductions introduced since 2022.

The figures are municipal estimates based on the current cadastral base and are not a statement of the final amount that will be collected after the new rate takes effect.

The Proposal Still Needs Approval

The changes are not yet final.

The proposed amendment must first receive provisional approval from the municipal plenary and then go through the legally required period of public exposure.

Any submissions or objections received during that process would have to be considered before the amendment can receive final approval.

Only after the required procedure is completed will the new rules take effect.

Changes Planned for January 2027

The proposed timetable is for the new IBI rates and bonuses to apply from January 1, 2027.

Until then, the existing tax rates and eligibility requirements remain in place.

For rural properties, that currently means an IBI rate of 0.45%, while the urban rate remains at 0.40%.

Santa Eulària's Latest IBI Changes

The proposal continues a policy of successive adjustments to the municipality's IBI rates while adding new incentives connected with housing.

The next stage will be the September plenary session, followed by the public-exposure and approval process required before the changes can become effective.