Published On: Wed, May 15th, 2024
World | 4,400 views

Canary Islands town to become first to hit tourists with new tax | World | News


A beautiful town in the Canary Islands is all set to become the first one to introduce a pioneering tourist tax in the popular holiday spot. Mogan, the second biggest tourist municipality in Gran Canaria, is taking steps to approve a tourist tax for travellers, it has been reported. 

The Council claimed that they have a legal basis to establish the tax, which will be “disguised” as tourist tax, instead of taxing overnight stays in accommodation, which falls under the jurisdiction of the Canary Islands Government.

According to the mayor, Onalia Bueno, they will charge tourists for the provision of public services, and, all of the revenue will be allocated to the “maintenance and improvement of tourist areas”.

The Council said that legally they can apply it due to a clause in the Local Finance Regulatory Law, which, in Article 20, states that “local entities may establish fees for the provision of public services […] that refer, affect or benefit particular subjects,” in this case, tourists.

The Mogan Council plans to introduce this tax in 2025. It will pay for services like gardening and cleaning, which are influenced by tourism. 

This way, residents who don’t directly benefit from these services won’t have to pay for them, while the many tourists who visit each year will contribute.

The Council said in a statement: “The City Council will not apply a tax for staying overnight in tourist accommodation. 

“However, it can approve a tax for the public services under its jurisdiction, and the model it has opted for is to consider anyone staying in these establishments, i.e. hotels, aparthotels, campsites, holiday homes, etc, as a taxpayer.”

This means every tourist staying in Puerto Rico, Arguineguín, Puerto Mogan, and Playa Mogan will pay a fee for each night they stay in the municipality, similar to a tourist tax or “ecotax” applied in Catalonia or the Balearic Islands.

The possibility of establishing a maximum number of nights and other types of exemptions that, like the fee itself, are still under study.

Visitors will pay the tax directly at their accommodations. 

The owners or management companies of these places will then give the collected money to the Council, probably every three months.

One exemption from this tax is for residents staying in a hotel or similar place in the municipality. Since they already pay taxes there, the Council doesn’t want them to be taxed twice.



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