I. LEGISLATION AND UPDATES

Galicia creates an indirect tax on tourist stays with a municipal surcharge adopted by several local councils

As of 29 September 2025, Galicia will join Catalonia and the Balearic Islands in applying a tax on tourist stays, which could mark a trend towards broader adoption throughout Spain.

This new levy was introduced by Law 5/2024 of 27 December, which creates the Galician Tourist Stay Tax as an indirect tax and establishes the possibility of setting an optional municipal surcharge. The first municipalities to regulate it through the corresponding ordinance will be A Coruña and Santiago de Compostela.

System operation:

• Regional tax: The Xunta de Galicia has established an indirect tax on overnight stays in tourist accommodations. Currently, this tax is fully subsidised by the regional administration, so it does not generate tax obligations for companies in the sector.
• Municipal surcharge: Local councils are authorised to apply a surcharge of up to 100% on the amount of the regional tax. In practice, this surcharge is the only amount charged to tourists, since the regional tax remains subsidised.