Galicia is, in Spain, a great unknown for many during the summer season, in an attempt to ensure good time in the southern regions of the country. However, its attractions landscapes, culture and its powerful gastronomy (Atlantic diet) of this Galician pearlmake this island a true paradise, as demonstrated by its great tourist rebound in recent years.
This is why some municipalities try to take advantage of it by imposing higher taxes on their neighbors when they try to compensate for the lack of hotel supply with tourist apartments, as is the case of the beautiful Arosa Island (Pontevedra). A paradise within another –next to Sanxenxo– which is discovered by passionate tourists wishing to bring together, under the same space, the beach, the landscape or culinary excellence.
This island, historically governed by Socialist Party for decades, now shares power with the Nationalist BNG. Together, they implemented a new assessment which affects garbage and sewage rates, significantly impacting both tourist rentals and various local businesses that are already struggling to survive through the rest of the year. Concretely, the new costs amount to 323.42 euros for waste management and 140.81 euros for the sanitation service, which represents a total payment of 464.23 euros. This represents a drastic increase, increasing the rates of these neighbors fivefold.
Thus, the recent increase in the municipal tax on accommodation for tourist use has generated a wave of controversies, pitting owners and tourists against local political forces led by the PSOE and the BNG. The local government’s flagship collection measure, which quintuples the rate applied to tourist residences, has been defended as a strategy to combat speculationimprove access to housing for residents and “control the impact of tourism on the environment”.
In this sense, owners of tourist residences in Towards the Island of Arousa recently demonstrated in front of City Hall to, among other things, present allegations against the update of garbage and sanitation rates. THE Galicia Tourist Housing Association (Aviturga), indicated that this new taxation is “abusive, unjustified and we will not tolerate it» wanted to say. “It is not acceptable that from one year to the next, the amounts for 2023 quintuple.”
On the other hand, the nationalist BNG party stressed no more inri, among their intentions is that the owners of these houses, in the future, rent their apartments only to people from the region, disdaining national and international tourism, which represents 90% of the island’s tourism.
Municipal debt
Municipal debt, the result in many cases of poor management, is not unrelated to Towards the Island of Arousawho is also in this situation. As is the case in other municipalities, the solution adopted by the Treasury Department follows the usual pattern: raising taxes to cover the debts generated by its own decisions. In this context, the local People’s Party described this tax increase as “huge“. This new burden particularly weighs on owners of tourist residences and businesses, seeing them as an easy target and a quick solution for increase collection.
As for the municipal debt borne by this city, governed until now only by the PSOE, it has experienced a rapid evolution over the last five years, going from 30 euros of debt per capita in 2019 to 334 in 2023.
The small Galician town of A Illa de Arousa, known for its natural wealth and fishing character, lies in the center of a strong tax controversy. The city government has approved a significant tax increase that will affect key rates for residents and local businesses. While the local executive defends the measure as necessary to guarantee basic services and sustainability, The People’s Party called the increase an “unnecessary blow.” for families.
The decision was recently announced at a municipal plenary session, where a package of fiscal measures including significant increases in rates such as the property tax (IBI), garbage collection rates and the controversial tax on accommodation for tourist use. In some cases, increases vary between 20% and 50%, depending on the nature of the good or service concerned.
For their part, the professional associations They expressed concern about the possible repercussions on tourism, a key sector for the economy of the island of Arousa. “If tourists start to stop coming due to rising prices or reduced accommodation supply, the impact will be devastating for the entire local economy,” they warn.
