CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. Countributed Articles
  3. Spain's Balearic Government Doubles Tourist Tax for 2018

Spain's Balearic Government Doubles Tourist Tax for 2018


Contributed by Sussex SEO
November 13, 2017



Families and individual visitors making a trip to the Balearic Islands including the Majorca, Ibiza, Menorca and Formentera islands, which are always very populated during the holidays, are to face a new tourist tax from July, 2018. This increase is an average doubling of 3 Euros per person and no charge for kids less than 16 years of age. This charge could cost a family of four about 75 Euros for the whole summer. The tourist tax increase is one of the few decisions the Balearic Government has decided to take in order to cope with the mass tourism in the area, which has increased by almost half due to the terror attacks in other known tourist areas. The revenue generated from this tax will also be used by the Government to to improve the islands, making them more attractive for the tourists.

This charge not only depends on the person, but also on the type of accommodation the person or family decides to rent. This means that a tourist tax of 4 Euros will be charged for anyone staying in an apartment or a 4 star hotel, 3 Euros for a 3 star hotel and 2 Euros for a person staying in a 2 star hotel, inns, tourist camps, campsites and pensions.

There has been a lot of criticism about this raise in charge by hoteliers, island managers and even editorials. Many have suggested that increasing tax rates for tourists staying in regulated establishments will have a disastrous effect, especially on family tourists. Local people fear that this charge could effectively decrease the population of tourists thereby causing a negative effect on their business.

The charge could also affect the population of expats on the island who will be faced with a lot more charges for a particular property. Buying of house or land by foreigners in Spain is allowed in fact, the Spain government encourages a lot of investments by foreigners whether resident or non-resident. Buying a property in Spain requires a lot of property market research in order to decide what exactly will be suitable and at what location. This research is very useful as it helps to avoid any scam or pitfalls after making a deal.

Julian Walker at Property and Spain says "Spain offers a foreigner a golden visa if the person invests up to 500,000 Euros on Spain property". This visa automatically permits a person to live in Spain for as long as possible. However, the present tax regime will now mean additional expenses when purchasing property. While some investors are holding their horses to see how the new tax regime affects things, others are putting plans in motion to get on the property ladder in Spain before the new taxes kick in.

With the present tourist tax charge in Spain, a tourist is charged 50 percent of the fee after staying 10 straight days in a particular place and holidays booked between November and April also has a 50 percent reduced tax charge.

 

Tags: tax | Spain | business | pensions | tax rates | investment

 

 

Back to Articles







Close

Password Reminder

Please enter your email address to receive a password reminder.

 












Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »