Court rules Mogán’s tourist tax is illegal

The Canarian Supreme Court has ruled that the “tourist tax” imposed by the Mayor of Mogán in Gran Canaria is illegal, upholding an appeal by the Las Palmas Federation of Hotel and Tourism Businesses.

The presiding judge, Francisco José Gómez de Lorenzo-Cáceres, stated that “not without some regret, it is the duty of this Court to put a stop to this misguided revenue-raising attempt by the defendant, declaring that  the challenged general provision is contrary to constitutional and legal norms, and falls far short of the principle of equivalence” that must underpin any fee.

Mogán’s “tourist tax” was actually a small municipal charge of 15 cents per night, levied on accommodation establishments in the popular tourist municipality. The Mayor of Mogán, Onalia Bueno, introduced the tax last year, in a move that has been watched closely throughout the Canaries.

Following the judgement, the tax has been frozen and the €1.4 million raised so far will not yet be allocated. It is possible that Mogán will appeal to a Spanish court.

The Canarian Government, which does have the power to set a tourist tax, has repeatedly refused to do so, claiming that it would damage the competitivity of the islands.