At the height of the tourist season in the Balearic Islands, a handful of taxi drivers have reported grossing as much as €7,000 in a single month. Those earnings often require working up to 14 hours a day, sometimes for weeks without a day off.
These figures, highlighted in a video by Adrián G. Martín and picked up by local media, reflect the experiences of several drivers, not a sector-wide average. One driver said they reached €7,000 in gross receipts during the busiest months, but only by working 12- to 14-hour shifts. Another noted that from April to October, pressure to meet demand leaves little room for rest.
Gross Revenue vs. Real Income
The €7,000 figure refers to total money collected before the costs of running a taxi are subtracted. Drivers must cover fuel and Social Security contributions, as well as taxes, insurance, repairs, maintenance and wear and tear from constant use. Without a full accounting of these expenses, the real net income remains unclear.
Whether a driver owns or leases their license, or works as an employee, also affects what they keep at the end of the month. With these variables unclear, €7,000 cannot be treated as a typical or guaranteed salary for taxi drivers in the region.
Seasonal Peaks and Administrative Response
The seasonal surge in demand has prompted Palma’s city council to issue temporary taxi licenses for the summer of 2026, aiming to expand service capacity. The city’s mobility department says the licenses are intended for the busiest months, but drivers will not all face the same workload or earn the same amount.
Regulations in the Balearic Islands, including Decree 6/2026, leave local councils to set rules on rest days and holidays, as well as shift patterns. Drivers who work without breaks are making individual choices under economic pressure; the law does not require everyone to do so.
Taxi vs. VTC: Different Pricing Models
Competition from ride-hailing platforms (VTCs) is another source of tension. Authorities approve and strictly regulate taxi fares, which appear on the meter. Pre-booked rides can have a fixed price, but it must be transparent and cannot exceed the official tariff. VTCs, meanwhile, must publish prices in advance and may raise fares by up to 75% during periods of exceptional demand, but no more. Claims that platforms can charge unlimited amounts do not reflect the current legal structure.
Official data shows that in 2023, more than 10,000 VTC license applications were submitted in the Balearic Islands, compared with 2,529 taxi licenses and 739 existing VTCs. Environmental and traffic criteria now determine whether new licenses are granted.
The High Price of a Taxi License
The cost of acquiring a taxi license is another major barrier. Some sources put the price at around €130,000 in Madrid or Barcelona, while figures in the Balearic Islands have been reported as high as €300,000 to €350,000. Prices vary widely with local market conditions because there is no official fixed price. Decree 6/2026 allows urban licenses to be transferred with municipal approval, but temporary licenses cannot be sold.
Estimates that it takes 10 to 15 years to pay off a license come from individual accounts and depend on factors such as purchase price and financing, along with vehicle expenses and hours worked. Long hours and heavy costs can offset high gross revenues, while business often slows outside the tourist season.
Fuel Costs and Economic Pressure
Fuel remains a particularly sensitive expense. One driver said a spike in fuel prices can force them to extend their working day just to maintain the same margin. Other self-employed workers in Spain face similar pressures, often seeing a wide gap between gross receipts and net profit because of taxes and operating costs. For those interested in how short-term work affects unemployment benefits, recent changes to Spain’s subsidy rules may also be relevant.
