Friday, September 1, 2017

Higher Taxes

I often note the German preference for vacation activity in the Mediterranean area....particularly with the Spanish isle of Mallorca.

I picked up the German news today, and there's talk of a Spanish tax increase coming up in 2018....doubling the present per-night tax deal, if you rent a hotel room on Mallorca.

The deal?  Currently, there's a two-Euro tax per night on upper-class hotels.  The gossip says that the rate will double to four-Euro for the same hotels in 2018.

Affecting the upper-class crowd?  No.  I don't think it'll make much of a difference.  In fact, you could raise the tax up to eight-Euro a night, and I think the numbers would stay the same.

A lot of Spanish residents will point out that 2017 was an odd year with a huge increase in tourism....mostly due to Germans avoiding Turkey (the Erdogan issue).  Greece has also enjoyed a great summer period and increased profits because of the German shift.

Where the money will get shifted into?  Unknown.  Maybe infrastructure....maybe more cops, that part of the story was left out.

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