The Balearic Islands government is offering residents aged 40 or younger a €10,000 grant to help buy their first home. The initiative opened on July 17, 2026, and runs until December 31, 2027, or until its initial €6 million budget is exhausted. Applications are processed in the order they arrive.
This is an existing direct-purchase grant, not a new measure in the housing package regional President Marga Prohens announced on October 20. Prohens said the funding would be reinforced so the program could reach more beneficiaries. The announcement did not establish that the original €6 million allocation had already been formally increased. During its first month and a half, the open call received 770 applications, and initial payments were expected to begin shortly. Applications received, approved claims and grants actually paid are separate measures of the program’s progress.
The grant covers completed homes as well as properties still under construction, provided the necessary building permits and certificates are in place. It also applies to purchases formalized as early as January 1, 2026, giving recent buyers who meet the criteria retroactive eligibility.
Who Qualifies
Applicants must be 40 or younger when they apply and prove they lived continuously in the Balearic Islands for the five years before signing the purchase contract or deed. The program is open to Spanish citizens, EU and EEA nationals, Swiss citizens, and non-EU residents with legal status in Spain. The property must be in the Balearic Islands and serve as the buyer’s basic residence for at least five years.
Applicants cannot own another property in Spain, except in specific cases set out in the official rules. Two co-owners can share the grant, with the €10,000 divided information from each person’s ownership share.
Income and Property Limits
Eligible homes can cost no more than €382,000, excluding taxes and transaction costs. Income thresholds are set at 6.5 times the IPREM, or public income index, currently €54,600 per year. The limit rises to €58,800 for general-category large families, people with disabilities and victims of terrorism. It reaches €63,000 for special-category large families, victims of gender-based violence and people with disabilities above 33%.
How to Apply
Applicants can submit the official form online through the Balearic administration or in person at authorized public offices. Required documents include the application form, a sworn statement, the private contract or public deed of sale, proof of residency, bank payment receipts and a certificate of bank account ownership. Foreign applicants must also prove they are legally resident in Spain.
If the public deed is not yet available, applicants may submit the private contract first and provide the deed within three months of approval. Proof of registration at the new address can also follow within three months of moving in.
Deadlines and Compatibility
The application window opened at midnight on July 17, 2026, and closes on December 31, 2027, unless the initial €6 million fund runs out sooner. Grants are awarded strictly in the order applications arrive. The subsidy can be combined with other support, including the Nueva Hipoteca Joven and public or private assistance, provided the total aid does not exceed the purchase price.
Prohens’s wider housing package pairs direct purchase assistance with mortgage guarantees and proposed tax relief. It also includes plans to use part of the sustainable tourism tax for housing. The guarantee allocation for the Nueva Hipoteca Joven scheme was announced as rising from €30 million to €45 million. Separately, Spain’s Ministry of Finance said the Council of Ministers had authorized the Balearic Islands to provide an additional €5 million in guarantees during 2026. Those guarantees operate through the Instituto Balear de la Vivienda (IBAVI), under a program approved by the Balearic Government on December 12, 2022, with a consolidated text approved on February 21, 2025. They are a financing mechanism distinct from the €10,000 grant.
The announced tax changes have a different legal status from the existing grant. The proposed measures would abolish regional property transfer tax (ITP) and stamp duty (AJD) for first-time buyers under 36, while cutting the taxes by 50% for buyers up to 40. They were planned for inclusion in the 2027 regional budgets and still require legislative and regulatory processing. They should not be treated as tax relief already in force.
In a related case, a retired farmer in La Rioja was recently ordered to repay nearly €47,000 after authorities determined he had continued working while receiving a pension. More details are available in the report on recent pension and property benefit enforcement.
Housing affordability remains a pressing issue for young people in Spain, and the Balearic Islands grant offers eligible buyers a route to purchasing a home in the region. Applicants should prepare their documents early and keep track of available funds.
