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EU court criticises Spanish matriculation tax

featured in News & reviews Author Amy Neville-Eliot, Content Editor Updated

MEP, Rosa Estara, shared the EU's judgement on the unpopular matriculation tax at the Balearic chamber of commerce in Mallorca last week. Only applicable in Spanish waters, the tax is widely thought to be damaging the yacht and charter business in Mallorca and across the Balearics.

The European court of justice has stated that the high levels of taxation imposed in Spain prevent the industry from competing with other EU member states on a level footing. The ruling is seen as a major victory for the nautical industry in the Balearic Islands.

With Mallorca's economy so dependent on tourism and the economic situation as it is, pressure to scrap the tax has been mounting. Critics argue it would give the industry a much needed boost, creating new jobs and generating millions of euros worth of additional revenue.

For more information read: Palma's International Boat Show; a showcase for the industry and a platform to lobby the government