Incentives for rentals

HOMEOWNERS who rent out their proper‐ties in Mallorca will be able to claim incen‐tives in exchange for reducing or freezing the rent they charge tenants under the new national housing law approved by the Spanish government last week.

The legislation will entitle the Balearic Is‐lands government to place a cap on monthly rental prices, declare ‘stressed ar‐eas’ and lower the category of ‘large own‐ers’ from 10 properties to five.

But the measure that is expected to have the greatest effect on the rental market is the introduction of tax incentives for own‐ers who rent out their empty properties.

The measure will mostly benefit owners with less than five properties located in ‘stressed areas’, ie those with the worst shortage of housing to let, although in or‐der to claim these grants they will be re‐