The Palma budget for 2026 amounts to €623.9 million

Mayor Jaime Martínez Llabrés has presented the Palma budget for 2026, approved by the Junta de Govern, which amounts to €623.9 million, a 2.25% increase on 2025, representing a rise of €13.7 million compared to the previous year.

Mayor Jaime Martínez Llabrés, together with VOX councillor Fulgencio Coll, during the presentation of the Palma budget for 2026. Photo: Ajuntament de Palma.

Compared with 2024, the increase stands at 17.47%, and compared with 2023, at 28%, consolidating an upward trend for the third consecutive year.

Martínez Llabrés stated that this is a budget with “more investment, more services, less debt and lower taxes, focused on people, neighbourhoods and shaping a modern, forward-looking city.”

The mayor highlighted that €90 million in investments will be allocated (+€5.6 million compared to 2025), “the highest investment made to date“, and that the consolidated budget — which includes municipal bodies and public companies — totals €956 million.

Martínez Llabrés, accompanied by VOX councillor Fulgencio Coll, thanked him for his support in passing the accounts, which he described as “historic.”

Key points of the Palma budget for 2026

Main economic measures

Second phase of the capital gains tax reduction, set at 18%, “one of the lowest among major Spanish cities.”
Reduction of the ICIO tax from November 2025, with a deduction of 50% on planning licence fees, aimed at “continuing to reduce fiscal pressure, stimulate construction and facilitate access to housing”.
Continuation of the tax reduction policy introduced in 2025, which saved citizens €11 million.
Forecast for lower municipal debt.

Public Safety

€121 million, a 12.81% increase on 2025.
“A historic call for 170 new Local Police officers” plus 50 additional posts.
€1.5 million for vehicles and the launch of the new police headquarters project.
New Local Police Organisation Plan, “after fifteen years of waiting“.
For the Fire Brigade, €3 million for vehicles and €700,000 for upgrades, plus the expansion of Civil Protection to 25 volunteers.

Cleaning and Environment

EMAYA will have €38 million, a 20% increase on 2025.
Investment in water networks, treatment and cleaning fleet renewal.
Continuation of the “Palma a Punt” plan, now in its fourth phase.

Mobility

Arrival of the first 57 electric buses out of a total of 113 planned.
Extension of the ORA parking zone.
BiciPalma will add 23 new stations and 230 electric bicycles in Platja de Palma and Passeig Marítim.

Infrastructure and Urban Maintenance

€130.5 million, €44 million more than last year.
Upgrades to parks, gardens, pavements, asphalt and street lighting.
€13.8 million for roads (+22%) and €20 million for parks and gardens.
€13 million for maintenance of public schools (+18%).
Increase of 24% in ornamental fountain upkeep.

Urban Projects and Facilities

Renovation of Plaça Major.
Development of the Fairground, GESA, Botanical Garden and former Luis Sitjar sports pavilion.
Creation of a demographic control centre.
New nurseries in Son Gibert and Son Dameto, a secondary school in Son Ferriol and acquisition of the Son Quint estate.

Housing

First phase of the housing action plan: 166 homes in Camp Redó and Son Ferragut.
Investment of €9 million over two years.
Martínez Llabrés recalled that this plan addresses “eight years of inaction by previous administrations“.

Social Services

Increase of almost €5 million, reaching over €62 million in total.
Consolidation of 84 places in the short-stay shelter service.
Strengthening of support for women victims of violence, with increases of 60% and 36% in the new contracts.

Education, Youth and Sports

€3.8 million to acquire the nursery schools of Ciutat Antiga and Santa Catalina.
Expansion of the “Open Playgrounds” programme and activities in neighbourhood centres.
In Youth, a material error will be corrected by amendment, increasing the total from €1,319,861 to €1,785,047.
In Sports, renovation of changing rooms, new facilities in Sant Jordi and Es Garroveral, modernisation of the Son Moix Sports Centre, and progress on the athletics track and Germans Escalas complex.