The tax is paid on arrival. | Daniel Espinosa

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The new Balearic government is working on finding a formula whereby residents of the Balearics can be refunded for tourist tax payments.

This refund was a Partido Popular election pledge. The option being studied would involve itemising any payment of tourist tax in annual income tax statements (presumably supported by receipts from accommodation providers). Deductions would be made for amounts declared. As the tax is specific to the Balearics, the Tax Agency in the Balearics has responsibility for its collection from hotels and other accommodation providers and would, in theory, be able to authorise personal deductions.

As such, there wouldn't be an exemption for residents. They would still have to pay the tax in the same way as non-residents have to, but they would be reimbursed, albeit several months later.

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The PP hope that this formula may get round EU regulations. When the sustainable tourism tax was introduced by the PSOE-Més government in 2016, the intention had been for an exemption for residents. But EU rules made clear that this would be discriminatory and clash with the right to freedom of movement and capital on equal terms.

No data as to how much Balearic residents contribute to tourist tax revenue have been released. Whatever the amount, it will be minor for a tax which this year is expected to raise some 140 million euros.

The PP, who scrapped the ecotax (introduced in 2002) after their election win in 2003, have decided to maintain the sustainable tourism tax. It is possible that the low-season rates will be adjusted downwards (they are already a quarter of the rates from May to October) or be eliminated.