The Council of Ministers yesterday approved the Special Regime for the Balearic Islands promised last Monday by the President of the Government, Pedro Sánchez, during his visit to Mallorca.
The main novelty is that the Government has extended the duration of the REB, thus guaranteeing that until 2028 the islands will have a special regime with deductions and tax advantages for the islands. As promised by Pedro Sánchez, what has been approved today by the Council of Ministers is the fiscal part of the REB, since another key element of our special regime, such as the insularity factor, had already been approved and guarantees 600 million until 2026 to compensate citizens for the effects of living on an island.
The agreement by the Council of Ministers includes the text full of the royal decree law approved in 2019, but in this case it is included in the General State Budget (PGE) with the rank of law for the next six years. Moncloa have agreed, at the request of the president Francina Armengol, that the REB is guaranteed on an annual basis and until 2028 due to the delay in its final approval after it was first driven in 2019.
In this way and until 2028 an annual investment reserve will be contemplated that will involve deductions of 90% in corporate tax and in income tax, the IRPF, of non-residents for investments that promote productive activity. In the same way, there will be bonuses of between 10% and 20% for products and goods produced in the Balearic Islands. This bonus is aimed, essentially, for industrial activity, agriculture, livestock and the fishing sector.
REB detailed by Pedro Sánchez to benefit tens of thousands of companies and self-employed
The Govern calculates that these bonuses by the REB detailed by Pedro Sánchez last Monday will mobilize about 350 million euros in the Balearic economy. It is also calculated about 208 million in tax incentives for 47,000 companies and 21,000 self-employed of the Balearic Islands.
Sánchez himself revealed last Monday the insistence of Francina Armengol in the approval of the REB, since they will mean very important incentives to boost the Balearic economy in many other sectors, in addition to tourism.
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