New vacationer tax in Spain and Canary Islands from December 1 may see vacation prices soar

Spain, including the Canary Islands and Balearic Islands, will roll out a new tax affecting tourists visiting the hotspots from December – and it could cost you more even if you’ve already booked

Brits heading to Spain, the Canary Islands and the Balearic Islands could face a 10% increase in the cost of their holiday from December.

That’s because the Spanish government is set to roll out a new tax where tourist accommodation will be subject to a 10% VAT. So for example if you’ve booked a holiday for £1,000, that would see you paying an extra £100 for the trip. The new rules predominantly apply to self-catering accommodation, such as holiday rentals. The new rule is set to come into force from December 1, and will apply to stays after this date, even if they were booked before the tax came into force.

Brits who have booked holiday villas or apartments could end up having to fork out the extra cash, even if they booked their stay before the rules came into play.

Previously, tourist accommodation in Spain was exempt from tourism taxes, but in recent years there have been widespread protests in hotspots such as the Canaries, because of the pressure on housing for locals as a result of holiday rentals.

The tax will apply to furnished holiday homes in popular destinations including the Canaries, Barcelona, Ibiza and Majorca, for any bookings where a home is rented for 30 nights or less. There will be exceptions made if a property is the landlord’s primary residence.

However, Brits may not necessarily be forced to pay the tax. If a landlord of a holiday home decides to pay the additional VAT themselves, UK holidaymakers won’t feel the impact. If you’ve already got a holiday home booked, check the T&Cs to see if any additional VAT is included in the cost, or whether you’ll need to pay it on top of your booking. If you booked through a travel agent, it’s worth speaking to them as they can advise as to whether this will impact the price of your holiday.

Currently the tax falls under a series of proposals, from a decree by the Spanish government. Officials have a month to get the legislation approved, but Majorca Daily Bulletin reports that it’s expected to pass as authorities currently have the parliamentary support they need to push the decree through.

There are already tourist taxes in place in parts of Spain. For example in Barcelona, tourists can pay fees from €7 per person, per night, with those costs rising to fees from €12 if staying in the likes of five-star hotels.

Meanwhile the Balearic Islands such as Ibiza and Majorca also have tourism taxes in place, although costs vary depending on the season when you visit and the type of accommodation you’ve booked (a five-star hotel will incur a larger tourism fee than a hostel or campsite, for example).

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