Ibiza announces new tax on Brits as it ramps up anti-tourism methods

Ibiza has announced a new tax on Brits as it ramps up anti-tourism measures. The country is getting tough on tourist cars, halving the number of rental vehicles, and adding a new €1-a-day tax.

The move is hitting hire car companies hard. It is part of the local government's controversial plan to ease congestion caused by locals as well as holidaymakers. Under the new rules, only 16,000 rental cars will be allowed in Ibiza compared to the almost 28,000 that rent-a-car companies had requested. Ibiza council says it has already assigned the final vehicle quotas for rent-a-car companies, within Law 5/2024 on the Control of Vehicle Influx in Ibiza.

Seventy-four firms have been included in the allocation, but the council is only allowing 16,000 vehicles. The maximum assigned to each company is 600 vehicles and they will have to pay a new daily tax.

President of the Balearic Islands' Business Association for Vehicle Rental (AEVAB), Ramón Reus, said they were happy with the quota.

"From the beginning, we knew there would be certain amounts, and in the end, that figure has been reached," he said in a statement to Periódico de Ibiza y Formentera.

He said they would watch with interest what happens from June, but added: "I think we will make a positive leap to reduce the number of cars on the island. From our point of view, it is fine."

"Ibiza council has informed us at all times and has even asked us for our opinion. Let's see how summer works. As islands, we must have a responsibility to achieve a better place."

"Although it is not only rent-a-car companies that are to blame for the saturation on the roads, if their supply can be controlled and the number of vehicles reduced, the result of the law will be positive."

The move is part of an overall plan to reduce the number of cars on the roads and their entry into Ibiza. Motorists will have to obtain authorisation to enter, circulate and park vehicles on the island. The rate, to be set next week, will be €1 a day for authorised vehicles. Hire car companies will also have to pay a tax per car.

The exact charges will be published on Ibiza's council websites so that tourists who wish to bring their vehicle to the island can acquire one of the 4,048 daily authorisations for private cars arriving by boat from the peninsula or Mallorca.

This quota also takes into account motorhomes that have a reservation in one of the five campsites on the island, which must also obtain authorisation. The rate that tourists will have to pay to be able to circulate with their vehicles in Ibiza between June 1 and September 30 will be €1 a day.

If it does not undergo any change as a result of the allegations period, the ordinance establishes the rate that 'rent a car' companies will have to pay depending on the vehicles awarded. In this way, Companies that have between 0 and 100 vehicles will pay €100 "for the entire limitation period", that is, for the entire summer season.

The rate for 'rent a car' that has been awarded between 101 and 150 vehicles will be €200, while those that have been awarded between 151 and 450 vehicles will have to pay €750. This rate will double for car rental companies that have between 451 and 900, which will pay €1,500. Finally, 'rent a car' that have more than 900 vehicles awarded will pay the rate of €1,500 plus €61 "for each vehicle that exceeds 900 awarded".

There has already been opposition to the new rues, with the shipping company Baleària lodging an appeal in which it asks for the precautionary suspension of the plenary agreement.

However, Ibiza council says it is committed to this law that will allow "for the first time" to put a maximum quota of vehicles that will be able to circulate on the island between June and September.

The government stresses that the will of the Ibizan people has been reflected in the law and regulations approved to regulate vehicles, and that they are confident that the request for suspension will not succeed.