Sustainable tourism tax in the Balearic Islands: a guide

The sustainable tourism tax (ITS in Spanish), popularly known as the ecotax, is a tax specific to the Balearic Islands regulated by Law 2/2016 on the Tax on Tourist Stays in the Balearic Islands. It applies to people's stays in tourist establishments and is allocated to projects linked to sustainable tourism and the environment.

The law has been amended since it was passed, both in the name of the tax and in aspects of how it is applied. For that reason, this guide describes the general structure and does not include amounts, which you should always check on the website of the Balearic Tax Agency (ATIB).

The person who pays the tax is the person staying: the guest. The accommodation, as operator of the establishment, acts as a substitute for the taxpayer: it collects the amount from the guest, declares it and pays it to the regional tax authority within the deadlines set by the regulation. If you manage third-party holiday homes, confirm with your adviser who takes on each obligation in your specific case.

The calculation follows a structure that is simple to understand, though with nuances. It applies per person and per night of stay, and the amount depends on the type and category of the establishment. So a five-star hotel, a three-star one, a tourist apartment or a villa do not necessarily have the same rate.

We do not give figures because the amounts and periods can be modified. Before configuring anything, check the current rates for your type of establishment with the ATIB.

• Children under 16: they do not pay the tax.
• Low season: a reduced rate applies during the months set by the rule.
• Extended stays: from a certain number of nights a reduction or a cap applies, according to the regulation in force.
• Other cases: there are specific situations covered by the law, such as certain stays for particular reasons. Check the details in the regulation.

These are the most common cases, but the rule can change. For specific decisions, confirm with the ATIB or with your tax adviser.

The recommended practice is to itemise the tax as a separate line on the invoice or receipt, so the guest clearly sees what they pay for the accommodation and what they pay for the tax. Because it is a different levy, it is not part of the VAT taxable base of the accommodation: it is charged separately. If you have doubts about the specific tax treatment, check with your adviser.

• Show the tax as an independent line, with the number of people and nights.
• Do not mix it with the room price or with other charges.
• If the guest is exempt, record the reason (for example, age).
• Keep the documentation you need for your returns.

Imagine a family of two adults and a 12-year-old who book a week that starts in low season and ends in high season. Only the adults have to be counted, the correct rate has to be applied to each night according to the period, and the maximum number of nights has to be respected if there is one. Doing it by hand is possible, but it is multiplied by dozens of bookings every day.

The prudent approach is to set the rule up properly once and check from time to time that it matches the regulation in force. When the ATIB changes a parameter, you adjust it in a single place and the calculation is updated for new stays.

Calculating the tax by hand is a high-season classic: groups with minors, stays that cross from low to high season, bookings changed at the last minute. In PMS Balear, the tax is configured by category (5, 4 or 3-star hotel, apartment, villa) with a high-season and low-season rate, a maximum number of nights and a minimum exemption age. It is then calculated on the stay, without anyone having to do it by hand.

• Configuration by category

  5-star, 4-star or 3-star hotel, apartment or villa, each with its own rate.

• High and low season

  Different rates depending on the period in which the stay takes place.

• Maximum nights and exemption

  Configurable night limit and minimum age.

• Separate line

  The amount is shown apart from the accommodation on the folio.

You define the rates using the official figures; the program does not impose them. To see how it fits with the rest of the management, see the pages for PMS for hotels and holiday rentals, and remember the SES.HOSPEDAJES guide.