Illegal boats in the Balearic region have multiplied in recent years and have caused significant losses in the tourism sector, as well as more insecurity for travellers who rent boats for their holidays in the Balearic Islands.
The arrival of more and more illegal boats in the Balearics is affecting tourism in the region. Data from the Patronal de Actividades Marítimas de las Islas Baleares (APEAM) confirms that, in the last three years, this type of pirate vessels, which do not pay taxes in Spain or are private boats, have risen from around 1,000 to 1,700, this is a considerable increase in this example of unfair competition.
Companies engaged in illegal tourist yacht chartering often operate from other countries considered tax havens or are private individuals without a business licence. These companies or private boats carry out their activity through the new Internet portals, without paying taxes, without permits, and take advantage of the tourist boom in the Balearic Islands, which summer after summer is breaking records.
The situation in the Balearic region differs from island to island: in Mallorca, it is estimated that there is one illegal boat for every legal boat, but Ibiza takes the worst part: at least three illegal boats for every legal one.
Illegal boat owners are sending more and more vessels to be chartered by tourists, which is having a negative impact nautical charter companies established in the Balearic Islands themselves., the company must charge the corresponding 21% VAT, have staff registered with the social security, and comply with the requirements of the law, such as having a home port in the Balearic Islands, in order to be able to carry out the activity of renting out boats legally and legitimately.
Boat rental companies, sailing boats, yachts and catamarans legally have difficulty competing on price with these pirate boats, since in addition to demanding VAT they have to pay other expenses, such as a year-round mooring: it has even been detected that the companies that rent illegally use petrol stations in marinas to embark clients and avoid this outlay. This unfair competition has caused them to lose between 20% and 25% of their turnover.
Igor Ibarguchi, partner of Rumbo Norte Ibiza, reminds us why it is much more profitable and safer to charter boats with local companies that operate legally:
- Guaranteed technical support and security. In the event of a technical problem on board, the illegal boats depend on the spare parts and mechanics available at the time on the islands, which are not many in the high season. A company located in the Balearic Islands, such as Rumbo Norte Ibiza, has a large stock of spare parts and a large team of official mechanics to provide an immediate response, without customers losing time from their holidays: in the case of pirate boats, we could talk about days. Legal boat rental companies also provide more security: in the event of a serious breakdown, a boat breaking down, or an unforeseen storm, they do have their own moorings to avoid risks for both crew and passengers and, if sailing is still possible, their large fleet would allow tourists to be relocated to continue their stay. enjoying their summer holidays. On an illegal boat, the customer would be left without a boat and would have to fight for his money back.
- Legal and fiscal protection. Tourists who charter boats without a Balearic charter permit may unknowingly incur legal sanctions, and also face problems and inspections by the tax authorities for encouraging the black economy by paying in cash and without taxes. In addition, insurance companies do not cover risks when a vessel does not comply with the law, which would leave customers unprotected and with a very high liability for own and third party damages. Finally, in the event of a dispute with the boat owner, it is much easier to establish a commercial or legal claim against a legal company that can be located on the island than against a private individual renting from outside Spain.
- Competitive pricing and increased professionalism. Individuals who advertise on Internet platforms to charter their boats illegally contact legalised charter companies to obtain the boats, and work on a commission basis: clients can negotiate a better price if there are no middlemen. In addition, we will leave our summer holidays (and our lives) in the hands of professionals, rather than with a company with no controls or security.
For all these reasons, we invite you to complete your trip to the Balearic Islands by renting a boat, but in a safe and legal way, with our professionals at Rumbo Norte.
Also with easily accessible services and restaurants, Port d’es Torrent is a sandy beach between two rocky areas. It is like a natural harbour of great beauty, and anchoring is easy, also at about five metres. The bottom is sand and seaweed.