Spain is set to introduce a new tourism tax that will add 10% VAT to tourist accommodation from December, affecting Brits heading to the Canary Islands, the Balearic Islands and other popular destinations. The levy applies predominantly to self-catering accommodation such as holiday rentals and will cover any stays after the implementation date, including bookings made before the tax was introduced.
Who Will Be Affected
The new measures target furnished holiday homes across sought-after locations including the Canaries, Barcelona, Ibiza and Majorca, for any property rented for 30 nights or fewer. Exceptions will be made where the property serves as the landlord's primary residence.
Brits who have already booked holiday villas or apartments could face the extra cost regardless of when they made their booking. However, they won't necessarily be forced to pay; it will depend on whether the property's landlord chooses to absorb the additional VAT themselves.
Background and Approval Process
Until now, tourist accommodation in Spain has been exempt from such taxes, but in recent years widespread protests have taken place in popular destinations such as the Canaries, driven by mounting pressure on local housing as a direct result of holiday rentals.
At present, the tax forms part of a series of proposals outlined in a decree by the Spanish government. Officials have a month to secure approval for the legislation, though the Majorca Daily Bulletin reports that it's anticipated to go through, as authorities currently hold the parliamentary backing required to pass the decree.
Existing Tourist Taxes in Spain
Tourist taxes are already established in certain parts of Spain. In Barcelona, visitors can face charges starting from €7 per person, per night, with fees climbing to around €12 or more when staying in properties such as five-star hotels.
The Balearic Islands, including Ibiza and Majorca, also operate tourism taxes, although the amount paid depends on factors including the time of year and the category of accommodation chosen. For those who have already booked a holiday villa or other self-catered accommodation, it's worth checking the terms and conditions of the booking to clarify whether the price already factors in extra VAT, or whether the extra cost will be asked on top. Those who booked through a travel agent should get in touch with them directly to clarify whether this will affect the overall cost of the break.
