A TAXING PROBLEM

TWO vital Balearic industries are being badly hit by rather odd taxation legislation introduced by the Spanish tax authorities. First you have the infamous matriculation tax on yachts which has almost brought this lucrative industry to a standstill. Superyachts with rich charters are staying clear of Balearic waters simply because their owners refuse to pay the tax.

The nautical industry is a vital source of revenue for the Balearic economy and it is a shame that millions of euros are being lost because the tax authorities are being rather short-sighted. If Spain wants to remain a key yacht charter destination then something needs to be done to resolve the tax situation.

The second tax problem is the one which is faced by the owners of rental homes. Many do not understand the tax legislation and are therefore unaware of what they have to do. I understand, that in these hard times, the tax authorities are on the lookout for additional sources of revenue but really they should work with the two industries to try and make the situation easier. In the case of the matriculation tax, the tax office should try and reach a compromise deal with yacht owners. At the end of the day if the issue is resolved it could really help the Balearic economy.