Abstract. To test if low soil fertility and competition limit the performance of Mediterranean shrubs, and if the effects of competition on plant performance were modified by soil fertility, we subjected shrubs of Erica multiflora to a factorial field experiment of fertilization and removal of neighbours around target plants. After 18 months of treatment, fertilization had stimulated the growth of pre‐existent sprouts and biomass allocation to stems into new sprouts, but decreased the frequency of sprout flowering. Removal of neighbours increased the number and biomass of new sprouts, the probability of sprout flowering and the biomass of flowers. Fertilization slightly enhanced sprout recruitment and the probability of sprout flowering when neighbours were removed, but did not modify the other parameters of plant performance. According to our results, both low soil fertility and competition limited plant performance. Competition was slightly more intense in fertilized plants, but only in determining sprout and flowering bud stimulation.