The ninety Balearic car-rental agencies, which moved their fiscal headquarters to municipalities in Madrid at the end of 2012 as a protest against a tax on car hire that the then regional government wished to introduce, are negotiating with the new government over re-registering with municipalities in the Balearics.

Ramon Reus, the president of the Balearic vehicle-rental association Aeveb, says that the association has been in contact with both President Armengol and Vice-President Barceló about bringing these businesses and their some 7,000 cars back to the islands.

“It is logical that they are based on the islands and pay matriculation taxes here. We are already negotiating changes of fiscal address and all that is really outstanding is the finalising of administrative procedures in order to effect these changes.”

When the agencies moved their fiscal addresses, the government had been planning on introducing a tax of between 3.5 and 9 euros per day. In the end, it was not implemented. Reus says that payments of car taxes, IVA and other taxes would mean revenues of some 14 million euros annually, with income tax corresponding to nine million of this.