Catalonia Doubles Tourist Tax in Barcelona and Fights for 2026 Budget

The Parliament of Catalonia has finalized the legislative process for a radical increase in fiscal burdens on the tourism sector. The new regulations, which will take effect from April 2026, stipulate a doubling of rates in accommodation establishments in Barcelona and a progressive increase in the levy in the rest of the autonomous community. This decision, supported by the socialists (PSC), the Progressives (Comuns), and the Republican Left of Catalonia (ERC), is expected to generate an additional 100 million euros annually, a quarter of which will be dedicated to housing policy. The hotel industry and business organizations, such as Pimec, have expressed deep concern, warning of a decline in the region's competitiveness and criticizing the government's "interventionism." Simultaneously, the President of the Generalitat, Salvador Illa, faces his greatest challenge since taking office and returning to activity after medical leave. Although his cabinet plans to approve the draft budget for 2026 this Friday, the document's fate in parliament is uncertain. A key ally, ERC, through its leader Oriol Junqueras, has announced it will submit an amendment to reject the proposal in its entirety. The main point of contention remains the issue of fiscal autonomy. The Republicans are demanding that the central government in Madrid fulfill its promise to transfer full control of IRPF tax revenues to Catalonia, which they treat as an absolute condition for further cooperation. The financing system for Spain's autonomous communities is based on a complex redistribution mechanism, from which only the Basque Country and Navarre are excluded. Catalonia has for decades sought similar tax sovereignty, which was one of the main drivers of the independence movement culminating in the 2017 crisis. Political tension is further heightened by controversies surrounding statements from ERC's general secretary, Elisenda Alamany, who suggested that Illa governs Catalonia as if it were the region of Murcia. This provoked a sharp reaction from the President of Murcia, Fernando López Miras, who described these words as "xenophobic provincialism." Despite the budget talks deadlock, the Catalan government has ruled out the scenario of early elections for the time being, hoping to reach a compromise in the coming weeks. Parliament has also summoned President Illa to provide explanations regarding recent crises in railway infrastructure and the effects of severe storms that have recently hit the region. „Si hems aguantat quatre anys en presó, aguantarem quatre setmanes de pressió.” (If we have endured four years in prison, we will endure four weeks of pressure.) — Oriol Junqueras