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Spain & the VAT Increase

The price of holidays in Spain is set to rise due to a VAT increase that will affect British tourists from 1 September.

In an attempt to counteract its worsening financial state, the Spanish government has announced a 2% VAT increase (to 10%) on accommodation, food, drink and transport, and a 3% rise (to 21%) on items such as clothing, cigarettes and sunglasses.

Some tour operators are set to absorb the cost for bookings this summer; however, if you’re booking flights and accommodation separately you may notice more of a difference. As with the VAT rise in Britain last year, some high-end hotels are likely to factor the increase into their pricing to offer better value for money, rather than pass the price hike on to customers.

To put those concerned at ease, the difference isn’t drastically high. A 1-week stay in a swanky hotel that was £756 (inc VAT) may now cost £770 (inc VAT). Similarly, a 43.20€ food bill will now cost 44€ (tipping isn’t included in this increase, unless you’re feeling generous). Added to this, the pound is currently standing strong against the euro, so the impact will be minimised.

Click here for holiday deals to Spain or here to see our top Spanish hotel deals.

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Tips by

Deal Expert, Manchester
Tuesday, 24 July 2012
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Martin Cropper