The Balearic Islands have created a platform that consolidates their investment and competitiveness incentive programs to boost activity within their business community. The regional government’s vice president for economic affairs, Antoni Costa, presented a document on Thursday that is intended to serve as a comprehensive catalog of all financing instruments and institutional support channels for the implementation and development of business projects in the archipelago.
“The Balearic Islands: Investing Means Moving Forward” is the title of a document designed to lay out in black and white everything related to financial assistance for business investors, both entrepreneurs and established businesses. The regional government itself acknowledges that, until now, all this information was highly scattered, spread across different administrative bodies and channels that did not provide convenient access for users. The catalog will be linked to a database that will be updated periodically, with alerts that can be programmed according to user preferences.
Costa presented the initiative alongside Bàrbara Barceló, Director General of Strategic Projects, European Funds, and Administrative Simplification. The document lists ten reasons to invest in the Islands: strategic location, international connectivity, economic dynamism, access to international markets, talent and human capital, an innovative ecosystem, quality of life, tax incentives, institutional support, and opportunities related to the sustainable transition. Building on this framework, it contextualizes and details the advantages that the public administration can offer in terms of tax incentives, investment mechanisms, and project acceleration.
Among these, regional incentives stand out, such as the Balearic Islands Investment Reserve (RIB), which reduces the tax base for undistributed profits by up to 90%; a tax credit of up to 100% on inheritance and gift taxes; and tax credits ranging from 10% to 25% for agricultural, livestock, industrial, and fishing activities. In addition to these are municipal-level incentives, such as reductions in the Property Tax (IBI) or the Economic Activities Tax (IAE). The Regional Government makes special mention of measures such as tax deductions for R&D&I activities or the implementation of the Special Regime for Impatriates, a mechanism applied to certain professional profiles designed to attract foreign talent in strategic sectors.
The goal, as the government emphasizes, is for companies wishing to invest to have a single document that provides “a clear overview” of the conditions and incentives available to them. This serves as a “letter of introduction” for the Balearic Islands, and its release represents another step forward in the strategy to attract investment and transform the economic model toward greater value and diversification.
The catalog serves as a complement to another initiative with the same objectives, namely the Strategic Projects Accelerator Unit (UEPA). This agency, designed with the same “one-stop shop” philosophy, has received 51 business initiatives since its creation through Decree-Law 6/2025 on urgent measures, which was approved exactly one year ago. The UEPA acts as a technical body that coordinates, streamlines, and reduces the bureaucratic burden of public and private investments classified as being of strategic interest. The initiatives that have reached the most advanced stages of development at this point, according to the Government, represent more than 365 million euros in potential investment in the industrial, healthcare, and agri-food sectors.
Costa emphasized that the regional government’s goal with the catalog and the EUPA is to continue making progress in consolidating a strategy to attract investment that guarantees institutional support for businesses and streamlines the entire process. In this regard, the vice president stressed that the document stems from the need to transform the economic model so as “not to rely solely on tourism.” In fact, he acknowledged that the Islands have not been a competitive destination for attracting investment “for far too many years.” He now intends to change that by laying the groundwork with the initiative presented this Thursday.
