Government commits to bringing new Special Regime for Balearic Islands before Lower House

Moncloa Palace, Madrid

On tax matters, the REV introduces an investment reserve in Corporate Income Tax and in Non-Resident Income Tax, applicable to permanent establishments located in the Balearic Islands. It also establishes a special regime for industrial, agricultural, livestock and fishing companies, with discounts on income from the sale of tangible assets produced in the Balearic Islands. The REB also regulates a factor related to its island status which will be included as a provision in the General State Budget each year for a period of five years, subject to revision.

As regards transport, in the REB the government will include the 75% discount for travel by residents, as well as other discounts related to the transportation of goods. It also recognises the status of public land transport as an essential public service, configured as integrated transport of an island nature, thus giving it access to funding under the National Budget for urban group transport on land.

The government will classify port and airport management as general interest services and undertakes to develop the necessary investments for their maintenance and adaptation to new traffic flows. As regards the maritime sector, a joint committee will be established to draw up a plan of development measures.

At their meeting, Pedro Sánchez and Francina Armengol spoke about the government's actions to back the construction of a parador [State-run luxury hotel] on the island of Ibiza, which will require an investment of some 26 million euros, as well as four other actions on sanitation and water treatment, with a planned investment of more than 46 million euros. Furthermore, the Directorate-General of Water plans to undertake another three sanitation and treatment actions over the coming years with an estimated investment of 85 million euros.

The Regional Government of the Balearic Islands has an investment plan for water and sanitation works for the sum of 361 million euros, of which the Ministry of Ecological Transition will contribute 50% through the public State company Acuaes. A 4.8-million euro investment for 2019 is also scheduled to extend the limits of the Land-Sea National Park of the Archipelago of Cabrera.

Non official translation