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20 Cars per Inhabitant: How a Tramuntana Village Became a Tax Haven for Vehicle Fleets

Registering Fleet Vehicles in Another Mallorca Municipality

Fleet registration in a cheaper Mallorca municipality can be legal, but it often relies on a tax loophole.

Published: April 23, 2026
20 Cars per Inhabitant: How a Tramuntana Village Became a Tax Haven for Vehicle Fleets

Answer

Is it legal for companies in Mallorca to register fleet vehicles in a different municipality?

Yes, it can be legal if the municipality offers a lower vehicle tax and the formal registration requirements are met. The controversy starts when vehicles are registered somewhere mainly to reduce tax, while their real use is elsewhere. That is why the practice is often seen as a loophole rather than a normal local tax policy.

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