15:50, Fri, May 16, 2025 | UPDATED: 15:52, Fri, May 16, 2025
A Tenerife town is set to propose the introduction of a tourist tax, in a first for the island. (Image: Getty)
San Miguel de Abona’s Socialist Party (PSOE) will present a proposal at the next municipal council meeting to introduce a tourist tax in the municipality. This could potentially make it the first area in Tenerife to adopt such a measure.
The proposed bylaw aims to introduce a fee on overnight stays in all tourist accommodation in the town located in the southern part of the Canary Island. According to the PSOE, the objective is for visitors to contribute financially to the upkeep of public services, which are currently funded almost entirely by local residents through taxation. According to the 2018 census, San Miguel de Abona is home to around 19,700 people within an area of 16 square miles.
San Miguel is leading the growth of short-term holiday rentals in the south of Tenerife. (Image: Getty)
San Miguel is leading the growth of short-term holiday rentals in the south of Tenerife, reported Canarian Weekly. Between January and September 2024, the municipality registered 193 new holiday homes, an increase of 24.3%, the highest percentage increase in the region according to the Canary Islands Institute of Statistics (ISTAC).
Holiday rental properties now account for nearly 50% of San Miguel’s total tourist accommodation available.
Such high levels have put a huge strain on essential services, including waste management, water consumption, security and cleaning, the PSOE argued.
“In 2024, residents funded approximately 70% of the municipal budget, which totalled €37.8 million [£31.8 million]. San Miguel locals contributed over €21 million [£17.7 million] through income tax alone,” they said.
According to data from the Spanish Tax Agency, the average disposable income in San Miguel de Abona is below both the national and regional average. (Image: Getty)
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According to data from the Spanish Tax Agency, the average disposable income in San Miguel de Abona is €19,636 (£16,543) per year, below both the national average of €24,542 (£20,677) and the regional average of €22,062 (£18,587).
Under the proposed measure, the tourist tax would apply on a per-person, per-night basis and only in officially regulated accommodation. Canary Islands residents would be exempt from the charge.
Revenue generated would be earmarked for specific purposes, such as tourism promotion, environmental maintenance and improvement of public transport. The proposal also includes a public consultation process before any formal approval of the new regulation
If approved, San Miguel de Abona would set a precedent in Tenerife, aligning it with similar schemes already in place in other European destinations that are struggling with tourist numbers.
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