UK tourist tax set to reshape travel costs – and expats in Spain will feel the pinch

The UK is preparing to join the growing list of European countries charging visitors a tourist tax, a shift that could have a noticeable impact on expats in Spain who regularly travel back and forth. While Spain – particularly regions such as the Balearic Islands and Catalonia – has long operated well-established tourist levies, England has until now resisted formal charges. That is about to change.

Under new government plans, mayors across England will be granted the power to introduce a “visitor levy” on overnight stays. The measure, confirmed through recent Budget announcements, represents a significant pivot in British tourism policy. Although the exact rate will vary between cities, early estimates suggest a modest charge, with figures around £1 per night frequently referenced in government discussions. In some regions, a percentage-based surcharge on accommodation costs is also being considered, aligning England with practices already common across mainland Europe.

What does it mean for expats in Spain?

For expats based in Spain, the development is striking not only because it brings England closer to European tourism norms but because it invites direct comparison with the fees long applied across Spanish destinations. On islands such as Mallorca, where many British residents live or frequently holiday, the sustainable-tourism ecotax is already a familiar part of travel planning. Spanish levies typically range from €2 to €4 per person, per night in high season for hotels and holiday rentals, with lower rates applied throughout the winter months. Children under 16 are often exempt, and the charge is designed to fund conservation projects, heritage protection and infrastructure designed to offset the strain of mass tourism.

By contrast, the UK’s proposed tax looks comparatively light. A nightly £1 charge equates to roughly €1.15 – noticeably below the rates most travellers pay in Spain’s busiest coastal and island regions. This is likely to come as a surprise to many Spain-based expats who have grown accustomed to the narrative that the UK is consistently cheaper for domestic holidays. Depending on where and when the new levies are introduced, the reality could begin to shift.

For expats who split their time between Spain and the UK, the implications are practical as well as symbolic. Regular visits to family or return trips during school holidays could become slightly more expensive, particularly if staying in hotels rather than with relatives. And while the increase may seem marginal at first glance, the cumulative effect over multi-night stays – especially for families – will be felt. At the same time, those living in Spain may find a certain irony in the UK adopting a policy that many British tourists once complained about when travelling to the Balearics or Catalonia.

The broader trend is clear: Europe is moving towards greater use of local tourist levies to support infrastructure, ease the pressure of overtourism and fund cultural protection. Spain, Portugal, France and Italy all apply some form of visitor tax, and the introduction of similar measures across England signals that the UK is acknowledging the same pressures on public services and city budgets.

For expats in Spain, the introduction of a British tourist tax highlights a closing gap between the two countries’ tourism models. Once seen as a uniquely Mediterranean approach, visitor levies are becoming a mainstream tool – and travellers who move frequently between Spain and the UK will now start to see the costs align more closely.