British holidaymakers heading to Spain, the Canary Islands and the Balearic Islands could see their holiday costs rise by 10% from December 1, when a new tax on tourist accommodation comes into force.
The Spanish government is introducing a 10% VAT on tourist accommodation. For example, a holiday booked at £1,000 would incur an additional £100. The rule applies mainly to self-catering accommodation, such as holiday rentals, and will affect stays after December 1 even if the booking was made before the tax was announced.
Who is affected by the new tax
Britons who have already booked holiday villas or apartments could face the extra cost, even if they reserved their stay before the rules took effect. The tax applies to furnished holiday homes in popular destinations including the Canary Islands, Barcelona, Ibiza and Majorca, for rentals of 30 nights or less. Exceptions are made if the property is the landlord's primary residence.
However, not all visitors will necessarily pay the tax. If a landlord chooses to absorb the additional VAT themselves, UK holidaymakers will not see an impact on their bill. Travellers with existing bookings are advised to check their terms and conditions to see whether additional VAT is included or will be charged on top. Those who booked through a travel agent should ask for advice on whether the tax will affect the price.
Approval and existing tourist taxes
The tax is currently part of a series of proposals under a decree by the Spanish government. Officials have a month to get the legislation approved, but the Majorca Daily Bulletin reports that it is expected to pass because authorities already have the parliamentary support needed to push the decree through.
Tourist taxes are already in place in parts of Spain. In Barcelona, tourists can pay fees from €7 per person per night, rising to €12 for stays in five-star hotels. The Balearic Islands, including Ibiza and Majorca, also have tourism taxes, with costs varying by season and accommodation type — for instance, a five-star hotel incurs a larger fee than a hostel or campsite.
