The new eco tax in the Balearics gets the green light

Written by Brenda Wilkin Last updated March 29th 201629/03/16

Last year there was talk of a possible Eco Tax that would hit the Balearics in 2016 and now the regional government in Palma have set the date. From 1st July 2016 the controversial tourist tax will be put in place, what does that mean for you? We’ve answered all your Eco Tax questions.

When will the tax be introduced?

This new tax comes into force from 1st July 2016.

How much will it cost?

Between May and October holidaymakers will face a tourist tax ranging from 50 cent to €1-2 per person per night. This will depend on the type of accommodation you stay in – with the upper rate applying to 4* and 5* hotels. For those coming to the islands of Ibiza, Menorca and Majorca between the months of November and April all of the rates will be discounted by 50%. After 10 days of any stay, the rate is cut by 50%.

Is anyone exempt?

Children under the age of 16 will be exempt from this tax. Tourists on subsidised, social vacation programmes and those who due to the nature of their work need to stay in tourist accommodation are also exempt from the tourist tax.

Who will be collecting the tax?

The tourist tax will be directly charged by the hoteliers.

What’s the tax revenue going to be used for?

The tax is aimed at a variety of purposes including the development of tourism infrastructure, training in the tourism sector, recovery of cultural heritage, promoting low-season tourism, research and development projects and investments in social and health facilities. But mainly the money contributed by tourists will fund new and exciting projects that all holidaymakers will be able to enjoy.

Over the next few months, the distribution of the revenue will be made by a committee. This hasn’t been formed yet, and there is likely to be a great deal of haggling to come as to how the revenue will be allocated. But what we do know is this controversial tax is here to stay.