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Government plans to finalise 2019 Budget proposals in July

Diverse and sometimes contradictory recommendations are currently under discussion to modify underlying rules governing Local Lodging. In last year’s budget, numerous changes came into effect regarding the taxation of Local Lodging income. In IRC, “AL” income under the Corporate Simplified Regime lost its reduced 0.04 coefficient, rising to 0.35. In IRS, the changes moved in the same direction: under the Simplified Regime for Independent workers, the 0.35 coefficient also applies. Apartments and villas let under in Local Lodging registrations were excluded from the 0.15 coefficient still available to room lets, hostels and holiday offerings registered under the  “Tourist Development” classification.

Barcelona to limit tourism

In 2016, the 1.6 million inhabitants of Barcelona were “overwhelmed” by more than 32 million tourists who “overloaded the city”. The City Council has approved legislation to limit the influx of tourists after more than 25 years of intense promotion of the city as a tourist destination. The plan will only have an impact after 2019. The tourism industry opposes the new plan, which says that the legislation “demonizes tourists.”

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