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Controls are being stepped up at the port and airport to try to stop the escalation of covid infections.
Ibiza s president, Vicent Marí said the perimeter closure of the island was an expected announcement given the complicated and difficult situation.
The alert is also being raised on the neighbouring island of Formentera which goes to level four.
Its border has also been closed, the curfew brought forward to 10pm and the interior of bars and restaurants closed.
Ibiza: The Balearic president today signed a decree that restricts the entry and exit of people (Image: Getty Images)
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The coronavirus level on the island has more than tripled since the beginning of January, particularly in people over the age of 65.