Tourist tax delay agreed in exchange for €60m fund for housing and councils

The Catalan government and left-wing party Comuns have reached an agreement on postponing the increase in tourist tax until October.

In exchange for Comuns' support for the delay, the Socialist executive has agreed to invest €60 million in funding for housing initiatives and local councils.

The figure is the estimated amount of lost revenue as a result of pushing back the rise in tourist tax from May to October.

The deal, announced on Friday by Minister Alícia Romero and Comuns leader Jéssica Albiach, also includes commitments to speed up the registration of so-called "big property owners," implement "effective" inspections of tourist apartments (HUTs), and boost the Neighborhood Plan (Pla de Barris).

Friday's agreement comes after Parliament rejected the government's original plan to delay the tax hike's implementation.

Romero confirmed that the Socialists now have guaranteed parliamentary support, given that Esquerra Republica (ERC) are also in favor.

Political standoff

Last week, Parliament approved the increase in the tourist tax and gave municipalities the power to apply surcharges.

However, the chamber rejected – thanks to Comuns' vote against – the decree that would have delayed its enforcement until October, meaning the tax would take effect from May instead.

The Catalan government then approved a decree law – a measure which does not need parliamentary approval but only lasts for some months – pushing the start date of the law back from May 1 to October, in order to provide "legal certainty" to businesses. 

Tourist tax increases

The increase to the tourist tax doubles, and in some cases triples, 2017 rates.

For example, in five-star hotels in Barcelona, the rate will rise from €2.25 to €7, and from €2.25 to €6 in the rest of Catalonia.

Tax on tourist apartments will double across Catalonia, and cruise ships stopping for less than 12 hours will be charged €6 per day.