Under the proposals, which will be debated in the islands’ parliament, the current tax will be divided into four rates and increase by between 66% and 200% in June, July and August depending on the property category, with a maximum of €6 per night.
In addition, the ITS will move from a two-tier system to four, with the tax being waived in January and February. The lowest hike will be from €1 to €2.50 per night, and the highest rate rise from €4 to €6 per night.
The proposed rule changes will affect Majorca, Menorca, Ibiza and Formentera.
Peak season rates for cruise ships docking in the islands would increase from €2pp to €6pp per night.
A new tax on holiday rental vehicles would also be introduced, with a variable fee based on emissions and time spent on the islands, ranging from €30 to €80.
Also being proposed is banning new tourist accommodation in “multi-family housing” and increasing quality requirements for the renewal of existing licences. Fines for breaching rules will increase to a maximum of €500,000.
The islands say some of the cash raised will be used to improve workforce welfare, “such as converting seasonal fixed-term contracts into permanent contracts”. Tax raised from hire vehicles will be invested in public transport.
Another measure being mooted is for OTAs to be compelled to ask for the registration number of the accommodation being sold.
“Both property owners and marketing platforms will be held responsible for any potential infringements. Moreover, fines are increased by 25% with penalties of up to €500,000,” the government said.
It added: “The government will now negotiate these measures with the different parliamentary groups to obtain the necessary support for approval in the parliament of the Balearic Islands.”
