Spain's hospitality firms fight to keep 10% VAT

Spain’s hospitality industry wants to keep its 10% value added tax (VAT) rate: its trade body has sent political parties 30 proposals ahead of the next general election. In Madrid on 27 October, Hostelería de España said it had asked to meet the parties to discuss its demands. The proposals name no measure specifically for Mallorca.

Tax, staffing and paperwork

The group also wants to scrap the extra social security costs employers pay for temporary extra staff. It proposes raising the value of meal vouchers to €14 and making them deductible for income tax purposes.

Other demands cover hiring incentives and contracts suited to seasonal work. The group wants simpler paperwork for small firms and a plan to protect jobs during climate emergencies or natural disasters.

Election hopes meet business worries

In the group’s survey for the third quarter of 2026, 54.7% of hospitality business owners said the election could do much or quite a lot to lift consumer confidence and spending in the sector. Another 38% expected little or no effect.

They were more guarded about their own businesses: 52.3% approached the next twelve months cautiously, while 27.2% were worried or very worried. Hostelería de España now wants to put its proposals before the parties for consideration in the next parliamentary term.

Topics: Food & dining · Economy

Source: Europa Press / Mallorca.com