Concerns over new luxury goods tax in the nautical sector. | Majorca Daily Bulletin reporter


The Confederation of Balearic Business Associations (CAEB) has warned that the introduction of a tax on non-productive luxury goods - which will include yachts - would cause an exodus of vessels to other destinations.

The association has expressed its “total opposition” to the possibility of a tax of this type in the Balearics, a measure that the Parliament called for in a non-legislative proposal on 7 February at the proposal of left-wing party Més.

As far as CAEB is concerned, this tax “would clearly harm not only the ports and marinas but also the business and industrial fabric of the Balearics.

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“We must bear in mind that yachting is a seasonal activity par excellence. It’s not only during the summer but yachts use our facilities in low season for repair and maintenance work, generating a lot of activity for highly specialised companies, such as safety equipment, carpentry, electronics, interiors, spare parts,“ said the vice president of the Association of Nautical Sports Facilities Baleares (ANADE), Andy Halcón.

Halcon also highlighted the importance of recreational boating over recent years in the areas managed by the Balearic Port Authority where it accounts for 69 percent of its revenue.

“The luxury tax that the Government wants to introduce would not be effective because, unlike other luxury goods, boats can be moved to other destinations to the detriment of the Balearics,” said the CAEB vice president.

The association has shown “concern” that the Balearic Government may implement a tax “which will benefit other Mediterranean destinations”, and warned the government “not to follow the example of other communities, such as Catalonia, where attempts have already been made to implement similar taxes that did not work”.