Balearic Islands, Spain August 1997 Ibiza (largest island) and Formentera (smaller island) are part of the group of islands off the east coast of Spain, known as the Balearic Islands. Ibiza is the third largest island in the archipelago. The landscape of Ibiza consists of hilly terrain that is covered by large stands of pine forests as well as almond, fig, olive, and palm groves. Beautiful, secluded beaches coupled with an ideal climate make both of these Spanish islands a paradise for tourists, especially from Europe. The Strait of Es Freus separates the islands but frequent ferry service provides easy access between the two islands. The Balearic Islands are remnants of the Alpine mountain system that extends east to west across southern Europe.