Warning of the economic impact of the rental vehicle restrictions in Mallorca

The National Federation of Vehicle Rental Companies (FENEVAL) has expressed its outright rejection of the draft bill presented by the Council of Mallorca.

This regulation, which follows steps already implemented in Formentera and Ibiza, seeks to restrict vehicle circulation on the island and provides for fines of up to 30,000 euros for violators, causing deep concern in the car rental sector.

FENEVAL emphasizes the lack of real-world information on the vehicle fleet in Mallorca. The employers' association has requested that, before implementing any restrictive measures, accurate and up-to-date data be collected to enable realistic decision-making and avoid the errors already observed in Ibiza, where initial load studies proved to be flawed after the application process.

The restrictions proposed in the draft, which are scheduled to come into force in early summer 2026, will focus on vehicles not registered in Mallorca.

Juan Luis Barahona, executive president of FENEVAL, has warned that this regulation "affects freedom of movement in Spain and harms the economic interests of companies." Barahona demands that "public administrations must assume their financial responsibility for the economic consequences this decision may entail."

The measure not only seeks to limit vehicle ownership by imposing a tax on those who do not pay taxes in the Balearic Islands, but will also apply an annual or biennial quota, giving preference to less polluting vehicles. This directly conflicts with the reality of Rent a Car (RAC) fleets, whose average age is 2.2 years (compared to 14.5 years for the rest of the market) and where 50% of their vehicles are already considered ECO. For these reasons, FENEVAL considers this a discriminatory measure against its business model.

The regulations will also have a significant impact on people who, while owning a home in Mallorca, do not permanently reside on the island. To be able to travel, these owners must have a vehicle registered for tax purposes at their island address and, furthermore, will only be allowed one car per home, further limiting their mobility options.

FENEVAL insists that it is crucial to adapt the island's entire mobility system before drastically reducing the number of rental vehicles. The employers' association emphasizes that the reduction in these vehicles will have no real impact on the tourist overcrowding that the Consell claims to want to mitigate. Furthermore, they express surprise at the fact that the Ibiza model is being replicated, a model against which the National Commission on Markets and Competition (CNMC) has already announced action for violating competition rules.

Uncertainty persists as to whether these measures will apply only during the summer period or, on the contrary, will be in place year-round, which would further aggravate the economic and operational consequences for the sector. FENEVAL, which represents 96% of the car rental sector in Spain, with more than 800 companies and a fleet of more than 500,000 vehicles, requests urgent dialogue with the Consell de Mallorca to avoid the approval of regulations that could be seriously detrimental to the island.