Government announces two major tax incentives to complement Balearic Islands special regime – Eurasia Review

Spanish Prime Minister Pedro Sánchez visited the facilities of CAROB SA, in the Majorcan municipality of Marratxí. Accompanied by the President of the Balearic Government, Francina Armengol, he announced the approval of two new tax incentives to complete the special regime of the Balearic Islands and promote the strengthening and economic transformation of the islands.

“With these two new tax incentives, we complete the special regime of the Balearic Islands and we provide a fair and legitimate response to the citizens of the Balearic Islands, who see their territorial diversity recognized in their tax system”, said Sánchez, who specified the two tax measures included in the draft general state budget for 2023.

Firstly, the Reserve for Investments in the Balearic Islands (RIB) will reduce corporate tax and income tax for non-residents by up to 90% of the taxable base when profits are used to finance productive investments and job creation. Likewise, the PGE will establish a 10% discount – up to 25% in the event of an increase in the workforce – for the sale of tangible goods produced in the Balearic Islands and derived from agricultural, livestock, industrial and fishing.

“When we talk about the fiscal model of our countries, we are talking about the welfare state we want; and Spain and the Balearic Islands want to compete to strengthen our welfare state and not contribute to its weakening and dismantling,” Pedro Sánchez stressed.

During his visit to CAROB SA, the Prime Minister of the Spanish Government recognized the work carried out by the company and underlined its commitment to sustainability, reindustrialization, job creation and professional training. “You are an example of inspiration and the entrepreneurial spirit of the businessmen and women of our country,” he said.

At the same time, Pedro Sánchez highlighted the government’s commitment to infrastructure and mobility in the Balearic Islands and announced an investment of 20 million euros to finance the Palma Tramway, a sustainable metropolitan transport project that will improve and modernize the public transport system in the Balearic Islands. Capital city.