Spanish Economist Criticizes Proposed VAT Hike for Hospitality Sector

Spanish economist Gonzalo Bernardos has criticized a proposal to increase the value-added tax (VAT) for bars, restaurants, and hotels ^[1].

The debate centers on a request from the European Union for Spain to raise taxes on the hospitality sector to increase fiscal revenues ^[1]. Such a move would significantly alter the cost of services for consumers and the operating margins for business owners across the country.

According to reports from June 5, 2026, the proposal suggests raising the VAT rate from 10% to 21% ^[1]. Bernardos said that those suggesting this increase are out of touch with the economic reality of the industry.

In a statement provided to Marca, Bernardos described the proponents of the tax hike as people who "viven en el convento" ^[1]. The phrase suggests that the policymakers are isolated from the practical struggles of the hospitality trade, a sector that serves as a primary economic driver in Spain.

The tension highlights a growing friction between EU fiscal directives and national economic interests. While the EU seeks higher revenues to stabilize regional fiscal targets, local economists warn that a sudden 11% increase in VAT could stifle growth and lead to higher prices for tourists and locals alike ^[1].

Bernardos has consistently advocated for tax policies that reflect the actual financial burdens of business owners rather than theoretical fiscal goals. The proposal remains a point of contention between the Spanish government and the hospitality industry as they navigate the EU's requirements ^[1].