I was looking at a hotel in Madrid and it said that 10% taxes not included in the quoted rate. Rick Steves' says that taxes in Spain are 20% VAT. Can someone clarify this? Are taxes included in the quoted rate and if so what are they? Some hotels do not even mention if taxes are included or not and some do? I do not want to get a good rate only to find out that there is a big hidden tax on departure.
Posted by
Tresana, Highlands Ranch, CO, USA
23626 posts
Historically the VAT tax is included in the quote rate. Recently some cities have started collecting an extra room tax of one or two Euro per person/per day. Have not heard of 10% but check with the hotel. They are just follow the examples of their American cousins.
Posted by
Malaga, Malaga, Spain
410 posts
I cannot speak about hotels specifically, but the VAT (IVA in Spain) went up to 21% last year.
Posted by
Virginia, USA
5848 posts
I think this article explains it. VAT increases in Spain The article notes that the VAT on hotels is 10% while the VAT on general items is 21%. Typically, European hotels will quote rates tax-inclusive (rather than tax-exclusive as is done in the U.S.); however, I occasionally notice hotels in Europe that break out the taxes separately. Regardless, hotels should note if the VAT is not included in the quoted rate (just as your hotel noted).