The new Balearics Eco Tourism Tax explained
On 1 July 2016 a new "tourism tax" came into effect in the Balearic Islands under the terms of a Bill approved in March 2016.
This charge applies to Majorca, Menorca, Ibiza and Formentera visitors and is somewhat complicated.
As a homeowner or rental management company, it is your responsibility to ensure that this tax is collected from guests and paid to the Balearic Government.
For self-catering accommodation, the daily tax rate varies from €2 for villas to €1 for apartments and rural properties with discounts of 50 per cent for stays in low season (Nov-Apr) and longer than 9 days.
The tourist tax is subject to a 10% VAT (Value Added Tax; Spanish: IVA) charge. (For example: €0.38 + 10% = rounded up to €0.42).
Children under 16 will not be charged. Other exemptions include people who travel to the islands for health care or to help with any emergency or disaster but they too must fill in forms and in the case of health, produce a declaration signed by a doctor.
This new tourism tax is expected to bring in between €60-70 million a year which will be spent on sustainable tourism projects across all four islands.
Here are the answers to questions we have received from concerned Owners in the Balearics:
How is a “stay” defined? Essentially, it is the 24 hours between 12 midday and 12 midday the following day. But any part of a day over 12 hours becomes a “day”.
How’s the tax going to be collected? For holiday rentals (and campsites) the tax must be paid to the government annually at the time of submitting your annual Declaracion de Renta in 2017
Other hostelry establishments must complete Form 702 for the period 1st July 2016 (when the tourism tax was introduced) until 31st December 2016. The deadline for completing this form is 1-20 September 2016.
Are Balearic residents exempt from the tax? European rules mean that the tax has to apply to Balearic residents as well.Read Full Article