Spanish travel agencies support VAT on tourist rentals

The Spanish tourism sector is showing signs of strength, with domestic travel increasing by 1% in the second quarter of the year, reaching nearly 47 million trips. According to the National Statistics Institute, travel spending has grown more significantly, rising by 3.5%.

José Manuel Lastra, president of the Spanish Confederation of Travel Agencies (CEAV), has addressed the controversial government proposal to apply a 10% VAT to tourist rentals. Lastra argues that this measure would “equate the rules of the game” by aligning the tax rate for tourist accommodations with that of other hotel and hospitality services in Spain.

Additionally, the sector faces challenges including inflation affecting production and construction costs, as well as legal scrutiny from Brussels regarding a Royal Decree that requires the communication of traveler data.