Spain Introduces New and Increased Hotel Taxes Across Key Tourist Destinations

Spain is joining a broader European trend by introducing new or increased hotel taxes across several of its popular tourist destinations. These levies, set to take effect in 2025, are primarily designed to manage the impact of mass tourism, fund sustainable development initiatives, and support local infrastructure. The Balearic Islands and Santiago de Compostela are among the key regions implementing these changes.

Balearic Islands to See Ecotax Hike

The Balearic Islands, encompassing Majorca, Menorca, Ibiza, and Formentera, have had a 'Sustainable Tourism Tax' (ecotax) in place since 2016. This tax is now slated for an increase, particularly during the high tourist season from June to August, starting in summer 2025.

Current rates for the ecotax range from €1 to €4 per person per night, depending on the type of accommodation and the season. However, new proposals and approvals indicate a rise in the overnight charge from €4 to €6 per person per night. For high-end hotels during peak summer, some proposals suggest a potential increase to €15 per night.

The primary objectives of this increase are to curb the impact of mass tourism, regulate visitor flows, and generate funds for specific sustainability projects, with a particular focus on water resources. To encourage off-season travel, the tax will be reduced during the low season, specifically from December to February. Residents of the islands will also see the payment of this tax abolished or reduced. Exemptions apply to individuals under 16 years of age. Cruise passengers visiting in June, July, and August will experience a tripling of their eco-tax, from €2 to €6 each night.

Santiago de Compostela Introduces New Tourist Levy

The historic city of Santiago de Compostela, a renowned pilgrimage destination, is set to introduce its own hotel tax from September or October 2025. This new levy will range from €1 to €2.50 per person per night, with the exact amount varying based on the accommodation category.

The tax aims to help the city manage the significant influx of visitors, particularly the hundreds of thousands of pilgrims who complete the Camino de Santiago annually. Funds generated are intended to maintain the city's historic center, support urban services, and modernize infrastructure. The tax will be applied for a maximum of five consecutive nights.

Exemptions for the Santiago de Compostela tax include:

• Minors
• Visitors traveling for medical reasons
• Participants in conferences or official sports competitions
• Individuals with disabilities
• Pilgrims staying in public hostels managed by the Xunta (regional government)

While hotel associations have voiced concerns about potential impacts on competitiveness, legal challenges to suspend the measure have been rejected by courts.

Broader Context of Spain's Tourism Strategy

These new and increased taxes are part of a wider strategy across Spain and other European nations to address the challenges posed by over-tourism. The goal is to ensure that tourism remains sustainable and beneficial for both visitors and local communities. The revenue collected from these taxes is directly invested in projects that promote environmental conservation, improve public services, and protect cultural heritage.