Else Beekman
The Balearic government has announced the launch of a new programme called “Alquiler Seguro” (Safe Rent), aimed at making housing more accessible for residents. Starting in November, the programme will encourage small property owners to offer their vacant homes at rental prices up to 30% below market rates.
In return, landlords will receive guaranteed rental payments from the government, up to €1,500 per month in Mallorca and Menorca, and up to €2,100 per month in Ibiza and Formentera.
How does the ‘Alquiler Seguro’ programme work?
Under the “Alquiler Seguro” programme, the government will work with property owners to provide affordable rentals to long-term residents. Here’s how it functions:
- The rent will be set by a real estate agent and validated by the Official Association of Real Estate Agents (COAPI).
- Tenants will pay 30% less than the appraised rental value.
- Rent limits are set based on the island. In Mallorca and Menorca, the government will pay no more than €1,500 per month, while in Ibiza and Formentera, the limit is €2,100. The rent for tenants will always be lower than €1,050 in Mallorca and Menorca, and €1,470 in Ibiza and Formentera.
Benefits for property owners
Landlords who participate in the programme will enjoy several benefits:
- Guaranteed rent payments, with flexibility to choose how they are paid: monthly, one year in advance, or even up to seven years in advance.
- The property will be returned in the same condition as it was rented out.
- Tax deductions are available in the owner’s income tax return.
Conditions for property owners
To qualify for the programme, property owners must meet the following requirements:
- They cannot be classified as large-scale landlords.
- They must have owned the property for at least three years.
- They must be debt-free with the local community.
- The owner must cover certain costs, such as property taxes, vehicle access fees (if applicable), and community charges.
Requirements for the property
Not all properties are eligible for the programme. They must meet these criteria:
- The property must not be newly built and must be at least three years old.
- It must have been vacant for at least six months, or no one should have been registered as living there for one year.
- Utilities like water and electricity must already be connected.
- The property must be ready for immediate occupancy.
Benefits for tenants
The “Alquiler Seguro” programme offers multiple advantages for tenants:
- Affordable rent, well below market rates.
- Trust and security, thanks to the government’s involvement in mediating the rental agreements.
- Good-quality homes in livable condition.
Who can rent under the programme?
To be eligible as a tenant, individuals must:
- Have been residents in the Balearic Islands for at least five years.
- Not own or have rights to a property on the island where they wish to rent.
- Meet income limits, with a maximum income of €60,667 for a single tenant or €68,250 for two tenants.
- Tenants cannot be related to the property owner.
This new programme aims to make it easier for residents to find affordable housing while ensuring that landlords have secure, stable rental income.
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