Barcelona City Council’s Government Commission has approved a new package of 27 different projects funded by 11.64 million euros from the Tax on Overnight Stays in Tourist Accommodation (IEET). This is the fourth package of projects approved by the municipal government during this term of office, bringing the overall total to 34.46 million euros for 91 different initiatives, designed to increase the social return from tourism for city residents and to help towards better management of tourism, economic promotion, training, culture, the promotion of science and education, and more.

The volume of revenue generated strictly from the IEET and consequently used for the investment determined by Act 5/2017, of the Government of Catalonia, has doubled. Without taking into account the municipal surcharge, the City Council has gone from receiving an annual average of 12.16 million euros from this tax in the last term of office, to 23.46 million in the current term. In this context, the City Council has decided to prioritise projects linked with a social return for citizens and the promotion of talent in the city, the two areas which have seen the most growth.

On this occasion, 9 of the 27 projects approved account for an overall investment of 2.69 million euros and are linked to the management of tourism and the designation of EGA areas; 5 projects related to commerce account for 1.07 million euros; another 5 account for 5.05 million euros and are connected to large events such as the city’s role as the Capital of Architecture and the Guadalajara International Book Fair; 4 account for another 1.83 million and are linked to science; 3 different projects represent nearly 300,000 euros and are to do with vocational training, while a final category relating to culture will receive 700,000 euros.

In terms of the amounts received, the three million which will be used for the Guadalajara International Book Fair stands out. This is a global cultural event of the highest order, with Barcelona as the guest of honour. Another noteworthy project will see 1.6 million euros used for collaboration connected to Barcelona’s designation as the World Capital of Architecture 2026. The third most significant project is linked to the organisation of initiatives to generate and attract digital and tech talent that help to position the city strategically in these sectors, for example the Talent Arena section held during the MWC.

Other notable projects among those to be funded by the IEET, and which need to adhere to the Catalan law currently in place, include “Barcelona X 10” to support cultural initiatives arising from different city districts; support for the exhibition “Animals invisibles” at the Museu de Ciències Naturals de Barcelona, and resources for continuing the Pla Endreça to improve cleaning in the city.

IEET: The third source of income for the City Council

Taxes on tourism are currently the third-largest source of revenue for Barcelona City Council, behind the property tax and capital gains tax. The evolution of tourism in the city, particularly following the Covid-19 pandemic, and the successive legislative changes relating to the IEET allowed the City Council to take in 106.5 million euros in 2024, with 25 million coming from the IEET and the other 81.5 million coming from the municipal surcharge.

This figure shows that income resulting from tourism has multiplied by 16 in the city since 2014, the year when the IEET was introduced and generated 6.5 million euros for the municipal coffers. The 106.5 million euros from 2024 represents an increase of 20.7% compared to the 88.2 million euros from 2023, and up to 162.3% compared to the 40.6 million from 2022.

The municipal surcharge thus currently represents a volume of income that triples the amount strictly generated by the IEET, allowing the City Council to move forward with notable initiatives such as the Schools Climate Plan. This plan will fund climate control in 170 state schools in the city of Barcelona over the next few years, with an overall investment of 100 million euros generated from the tourist tax and the municipal surcharge applied it to it.

With the municipal surcharge rising to €4 last October, the forecast for 2025 is for the overall revenue to rise to 115 million euros. Regardless of the legislative reform currently being worked on in the Catalan Parliament, the tourist tax that each visitor has to pay when they arrive in the city of Barcelona is currently as follows: