Mallorca Town Calvia Approves Freeze on Property Tax

calvia-mallorca-real-estateGood news from Calvi on the southwestern part of Mallorca real estate is coming out these days. It seems that since the Spanish economy is currently under some restraint and the real estate sector has suffered stagnation and recently even a decrease in value and sales, the local authorities are trying to aid the property for sale Mallorca which, for small settlements on the island, is the main source of income.

That’s why the town hall in Calvia has decided to bring the problem up in the plenary after the project was brought to their attention by the governing team led by Mayor Manuel Onieva. The project was to help support the local real estate market develop by taking a series of measurements in order to protect homeowners and potential investors.

It’s for this reason that the local government voted unanimously to freeze the Property Tax (or IBI as it’s known to locals) for a period of 4 years. This option was considered to be the most advantageous to the whole municipality unfair advantages between the different localities in the municipality would have happen and the objective of maintaining to zero the increase during the forthcoming period would not have been achieved. But, through the bonus, the Calvià neighbors will receive an economic compensation in the same receipt which will answer to the positive difference between the total fee of this year and last year´s tax.

This is a big decision to take, especially since this tax is very important for all town halls and one that the local budget relies heavily on. But apparently the authorities thought it was more important to help locals as well as create confidence in the Calvian business sector in order to lead to some increase in business.

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