Palma Budget 2026: A Comprehensive Overview
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. This budget is characterized as having “more investment, more services, less debt and lower taxes, focused on people, neighbourhoods and shaping a modern, forward-looking city.”
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. 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.
Key Aspects of the Budget
Main Economic Measures
The budget introduces several key economic measures, including the second phase of the capital gains tax reduction, set at 18%, which is one of the lowest among major Spanish cities. There will also be a 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.” Additionally, the tax reduction policy introduced in 2025 will continue, which saved citizens €11 million, and there is a forecast for lower municipal debt.
Public Safety
In terms of public safety, the budget allocates €121 million, a 12.81% increase on 2025. There will be a historic call for 170 new Local Police officers, plus 50 additional posts. Furthermore, €1.5 million will be allocated for vehicles and the launch of the new police headquarters project. A new Local Police Organisation Plan will also be implemented, “after fifteen years of waiting.” The Fire Brigade will receive €3 million for vehicles and €700,000 for upgrades, and there will be an expansion of Civil Protection to 25 volunteers.
Cleaning and Environment
For cleaning and environment, EMAYA will have €38 million, a 20% increase on 2025. There will be investment in water networks, treatment, and cleaning fleet renewal. The “Palma a Punt” plan will continue, now in its fourth phase, focusing on improving the city’s cleanliness and environmental conditions.
Mobility
In the area of mobility, the first 57 electric buses out of a total of 113 planned will arrive. The ORA parking zone will be extended, and BiciPalma will add 23 new stations and 230 electric bicycles in Platja de Palma and Passeig Marítim, enhancing sustainable transportation options in the city.
Infrastructure and Urban Maintenance
The budget allocates €130.5 million for infrastructure and urban maintenance, €44 million more than last year. Upgrades will be made to parks, gardens, pavements, asphalt, and street lighting. Specifically, €13.8 million will be spent on roads, and €20 million on parks and gardens. There will also be an increase of 24% in ornamental fountain upkeep and €13 million for the maintenance of public schools.
Urban Projects and Facilities
Several urban projects and facilities will be developed, including the renovation of Plaça Major, the development of the Fairground, GESA, Botanical Garden, and the former Luis Sitjar sports pavilion. A demographic control centre will be created, and new nurseries will be built in Son Gibert and Son Dameto. A secondary school will be constructed in Son Ferriol, and the Son Quint estate will be acquired.
Housing
The first phase of the housing action plan will be implemented, including 166 homes in Camp Redó and Son Ferragut, with an investment of €9 million over two years. This plan addresses “eight years of inaction by previous administrations” and aims to provide more affordable housing options for citizens.
Social Services
Social services will see an increase of almost €5 million, reaching over €62 million in total. The short-stay shelter service will be consolidated with 84 places, and support for women victims of violence will be strengthened, with increases of 60% and 36% in new contracts.
Education, Youth, and Sports
In the areas of education, youth, and sports, €3.8 million will be allocated to acquire nursery schools in Ciutat Antiga and Santa Catalina. The “Open Playgrounds” programme will be expanded, and activities in neighbourhood centres will be increased. In sports, there will be renovations 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.
Culture
While specific cultural initiatives are not detailed in the provided information, the emphasis on public services, infrastructure, and community facilities suggests a broader commitment to enhancing the quality of life and cultural experiences in Palma.
For more detailed information on the Palma budget for 2026, including all initiatives and allocations, Here
Images Credit: mallorcaglobalmag.es