Grants in Spain are less prominent than in Germany, but they do exist. If you become self-employed on Mallorca or build a small business there, you can choose between social security bonuses, regional investment subsidies, and EU-funded programmes. The key is to do your research before investing, apply early, and document everything carefully.
Tarifa Plana for Autonomos
The most important start-up support for self-employed people is the Tarifa Plana (flat rate) of the Seguridad Social (social security). Instead of the regular 360 to 410 EUR per month, you pay a flat rate of 80 EUR for the first 12 months. Requirements:
- You have not been registered as an Autonomo in the last 2 years (3 years if you have already used this scheme before).
- You register freshly with the Regimen Especial de Trabajadores Autonomos (RETA).
- You continuously meet your obligations as an Autonomo (contributions, taxes, modelos).
Extended options:
| Group | Extension | Condition |
|---|---|---|
| Young self-employed (under 30, women under 35) | 12 additional months at 50% | Application within the first Tarifa Plana period |
| Residence in a municipality with under 5,000 inhabitants | 24 additional months at 80 EUR | Empadronamiento required |
| People with a disability of more than 33% | 24 further months of bonus | Certificate from the autonomous community |
| Families with care responsibilities | Can be combined with further support | Social services assess the need |
Tip
If you are registered in a small village such as Sineu, Esporles, or Felanitx, you can extend the Tarifa Plana to up to 36 months. The application goes through the Tesoreria General de la Seguridad Social and confirmation takes 4 to 8 weeks.
Balearic Island Grants
The Govern de les Illes Balears publishes annual grant announcements through the Conselleria d'Empresa, Ocupacio i Energia. The most important programmes for 2026:
- IDI - Programa de Digitalitzacio: Subsidies for hardware, software, cloud migration, and cybersecurity. Funding rate 40 to 60 percent, maximum amount 12,000 EUR.
- Eficiencia Energetica: Subsidies for PV systems, heat pumps, and climate modernisation. Funding rate up to 65 percent, can be combined with Next Generation EU funds.
- Suport a l'Economia Social: Support for cooperatives, social enterprises, and foundations based in the Balearic Islands.
- Convocatoria d'Innovacio: Innovation projects with university cooperation, bonus of 50 percent of personnel costs.
- Bonos de Asesorament: Vouchers for advisory services (marketing, tax advice, internationalisation) up to 4,000 EUR.
These programmes typically appear in spring (April to June). Application deadlines are short, often only 30 days. If you subscribe to the CAIB grant portal, you receive updates by email.
EU Funds and Next Generation
Through the Plan de Recuperacion, Transformacion y Resiliencia (PRTR), Spain is distributing around 140 billion EUR in Next Generation funds. The most relevant ones for the Balearic Islands are:
- Kit Digital: Up to 12,000 EUR for SMEs to digitalise websites, e-commerce, CRM, and accounting. Apply directly at
acelerapyme.gob.es. Currently the most accessible grant with a high approval rate. - Kit Consulting: 24,000 EUR for medium-sized businesses for advice on cybersecurity, data strategy, and artificial intelligence.
- MOVES III: Subsidies for electric cars and charging infrastructure, often with the obligation to scrap the old vehicle.
- Programa Tourisme Sostenible: Specifically for hotels and holiday rentals in the Balearic Islands, focused on water saving, energy efficiency, and accessibility.
- Erasmus for Young Entrepreneurs: A mobility programme for young entrepreneurs, with a monthly stipend and mentoring in another EU country.
Warning
Be careful with Kit Digital and Kit Consulting: the funds are capped. The tranches are often exhausted within a few days of opening. Keep your adviser or Gestoria on standby as soon as the next Convocatoria is announced.
Startup Programmes and Incubators
If you are founding a startup or tech company, you will find a growing ecosystem on Mallorca:
- ParcBit (Parc Bit Innovacio): Innovation park in Palma with subsidised offices, mentoring, and links to the Universitat de les Illes Balears.
- Mallorca Startup Hub: Community with pitch events, investor matching, and workshops.
- ENISA participation loans: Up to 1.5 million EUR in mezzanine capital for innovative business models.
- CDTI - Neotec: Grants of up to 250,000 EUR for technology-based start-ups, often combined with tax reductions.
- Camara de Comercio Mallorca - Activa Industria 4.0: Accompanying programme for the digitalisation of industrial SMEs, with funding for diagnostics and roadmaps.
- Lanzadera or Wayra: Private-sector incubators with offices in Madrid and Barcelona that regularly accept Mallorca-based talent.
Tip: If you get certified as a startup (through ENISA or CDTI), you can use the Regimen Fiscal de Empresas Emergentes. Benefits include a reduced corporate tax rate of 15 percent, payment deferrals, simplified loss offsetting, and tax privileges for employee stock options.
How to Apply
Grant applications follow a similar logic. The standard process:
- Identify the Convocatoria: Announcement in the BOIB (Boletin Oficial de les Illes Balears) or BOE.
- Check requirements: Does your activity meet the IAE code, the minimum turnover threshold, and the investment amount?
- Memoria economica and tecnica: Mandatory documents in which you describe the project, the investment, the expected impact, and the timeline.
- Receipts and quotes: At least 3 quotes for investments over 15,000 EUR, otherwise a standard questionnaire.
- Apply online through CAIB or the relevant ministry: Using a digital certificate or Cl@ve. Watch the deadline.
- Provisional decision (Resolucion provisional): You receive a list of provisionally approved applications. If your application is missing or has been reduced, you normally have 10 days to object.
- Carry out the investment: Only now can you place orders. Collect receipts, make payments through your business account, and archive everything digitally.
- Submit the Justificacion: Within the specified deadline (often 2 to 3 months after the project is completed), you submit receipts, photos, and proof of payment.
- Payment: 30 to 90 days after the Justificacion, depending on the authority's liquidity.
Common Mistakes
Grant procedures are formal. Anyone who is sloppy here loses money. The most common mistakes:
- Investing before applying: As soon as you place an order before submitting your application, the project is considered "iniciado" and is no longer eligible for funding.
- Missing receipts: Invoices without NIF, without an IVA breakdown, or without a visible date are rejected.
- Cash payments: Grants require payment by bank transfer. Cash receipts are disqualified.
- Late Justificacion: Even one day late leads to disqualification. Plan at least 2 weeks of buffer time.
- Wrong cumulation: Anyone who uses several grants for the same investment without observing the cumulation rules risks repayment plus interest.
- Weaknesses in the Memoria: A vague project description leads to queries and reduced approvals.
A specialised Gestoria or grant adviser charges between 8 and 15 percent of the approved amount, often on a success basis. For larger applications (Kit Digital, MOVES, IDI Innovacio), this is money well spent. Once you understand the routines, you can tackle smaller programmes yourself later and secure a few thousand euros of investment budget every year.