The Government of the Balearic Islands has taken an important step to improve the control of holiday rentals in the archipelago. Following a data cross-check with the island councils, 1,475 establishments were identified that held a tourist licence but were not registered in the Tourist Stays Tax census (ITS), commonly known as the eco-tax.
Of these, 570 establishments have already voluntarily registered. In the remaining cases, the Administration will proceed with automatic registration if the non-commercialisation of the activity is not duly proven, thereby ensuring fiscal equality among all operators, according to a statement from the Vice-Presidency.
Once registered, the information regarding the declared start date of the activity is verified and compared with the records held by the island councils. In the event of discrepancies, the date is adjusted to match the official register, the establishment owner is notified, and the corresponding tax settlements are applied with retroactive effect.
The aim of these measures is to ensure that the information available is accurate and coordinated between administrations, and that the current tax regulations are properly enforced.
Two years of joint work
On 18 September 2023, the First Vice-President and Minister of Economy, Finance and Innovation, Antoni Costa, together with the President of the Consell de Mallorca, Llorenç Galmés, announced the launch of this data cross-checking process to improve the management of holiday rentals.
This action also follows a ruling by the Court of Justice of the European Union (CJEU) on 27 April 2022, which requires intermediary platforms to provide tax information to the Treasury in order to monitor rentals and the collection of the tax.
“This is a step forward to guarantee transparency and equal conditions among all tourist establishments. We want everyone to comply with the same obligations and for the resources collected to be allocated to the welfare of the citizens of the Balearic Islands,” said Vice-President Costa in the statement.
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