Court leaves 200,000-euro fine against Ibiza yoga centre that organised illegal parties up in the air

The Contentious-Administrative Chamber of the High Court of Justice of the Balearic Islands has partially upheld the appeal filed by the Ibiza yoga centre Garden of Light, provisionally suspending enforcement of the 200,000-euro fine imposed on it by Sant Joan Town Hall for organising illegal parties with alcohol sales and marketing tourist stays without the required registration.

With this ruling, the Balearic high court fully overturns the order issued in November by Contentious-Administrative Court number 3 in Palma, which had initially refused to suspend the fine on the grounds that the risk of bankruptcy or irreparable harm had not been sufficiently proven.

The key to the judicial turnaround lies in the assessment of the financial evidence. While the lower court found that the company had not reflected its real financial position and had confused the documents with corporate tax returns, the TSJB clarifies that the company had correctly submitted its annual accounts balance sheets filed with the Commercial Registry.

Those balance sheets offer a stark financial picture: continued losses in 2021 (-84,286 euros), 2022 (-146,427 euros) and 2023 (-16,768 euros), followed by a profit of 18,061 euros in 2024. Given this situation, the TSJB concludes that the company’s viability would indeed be seriously compromised by the immediate payment of the 200,000 euros, noting that the annual accounts provide a “true and fair view” of the entity’s liquidity and solvency.

A yoga licence at the heart of the case

Sant Joan Town Hall, for its part, defended the enforceability of the sanction by invoking the general interest and public safety, describing the events as travelling “illegal parties” with a large attendance that disrupted residents’ rest. In its appeal, the company’s defence firmly denied these accusations, arguing that the establishment holds a licence as a school of yoga and human development, and that the events legitimately formed part of the activities scheduled under that authorisation.

However, the TSJB has refused at this stage to rule on whether or not there was a factual error in classifying the event as a party, recalling that the doctrine of the “appearance of good legal grounds” must be applied with extreme caution so as not to prejudge the merits of the case, which will have to be decided definitively in the future main judgment.

Despite the breathing space the ruling gives the yoga centre, the court has rejected its request to suspend the fine free of charge. To guarantee that the Town Hall can collect the penalty if it ultimately wins the main case, the TSJB has made the suspension conditional on the payment of a guarantee. As a result, Jardín de Luz Ibiza S.L. must provide a bond or bank guarantee worth a total of 240,000 euros, covering the 200,000-euro principal fine plus 40,000 euros calculated as late-payment interest.

Illegal concerts at 70 euros a ticket

In 2024, Sant Joan Town Hall imposed the fine that brought an end to the irregular operation of Garden of Light as a concert venue and space for activities with spiritual aspirations, with admission fees of up to 70 euros. The events were also held on a property located on protected rural land. The centre had been running its programme regularly, though with greater activity in summer, since at least spring 2022, as it openly advertised on social media.

The yoga centre was located on a property in Sant Miquel and formed an annexe to a tourist villa marketed under the name s’Ermita, the name historically given to the estate. The complex stood on the side of a hill, next to the Rubió torrent, surrounded by woodland.

To document that Garden of Light was breaching activity regulations, the detective service hired by the Consell de Ibiza to detect illegal parties infiltrated one of its events. The detectives’ report was later supplemented by an operation carried out by Sant Joan Local Police.

Municipal officers found that, in addition to ticket sales, other infringements were taking place at the concert, including the sale of drinks, food and even clothing, all accompanied by loud music. The centre promoted itself as “a place of relaxation, revitalisation and events made from the heart” and “a hidden sanctuary for connection, prayer, art and metamorphosis”. The person in charge of Garden of Light was Jason Doig, a former Canadian international ice hockey player with a successful professional career.