A NEW Spanish tourist tax being introduced this year is set to cause a hike in holiday costs.
The rule, which will be rolled out from the start of December, could see some holidaymakers slapped with an extra fee.
Tourists visiting Spain and the Canary Islands after December 1st, 2026, may have to pay an extra new charge if they opt for self-catering accommodation.
Those staying in apartments or villas booked via the likes of Airbnb could end up shelling out for an additional 10 per cent in VAT.
The tax, brought in by the Spanish Government, applies to qualifying furnished holiday rentals in popular travel destinations such as Ibiza, Mallorca, Barcelona and the Canary Islands.
Tourist accommodation in Spain has previously been exempt from VAT payments.
Any holiday home rented for 30 nights or fewer will be subject to the tax – unless the property is the landlord’s habitual home.
The government says that the VAT measure is being brought in to help combat the housing pressures faced by Spanish residents.
The Spanish property market is currently under strain due to the high amounts of apartments and houses being bought for short-term tourist use.
The new tax may not necessarily mean that tourists are forced to pay, though as it depends if the landlord of the holiday home decides to pay the additional VAT themselves.
Tourists are being urged to double check the price of bookings made for rental holiday homes before they pay.
Those booking accommodation that could be subject to the new tax should look carefully at the price breakdown of bookings
It is wise to check whether any additional VAT is included in the cost or whether paying it on top of the original booking will be a requirement.