Tourist tax cancelled in Canary Islands hotspot Mogán in Gran Canaria just one day after being introduced

The Mogán Council now has three days to defend the tax's validity, which came into effect on Tuesday 11 March. The tax requires payment of €0.15 per night for guests staying in local tourist accommodations in the municipality in the south of Gran Canaria.

Judge Francisco José Gómez de Lorenzo-Cáceres stated that this tax created "an inappropriate and disproportionate burden" and should have been regulated by a formal law. Federation of Hospitality and Tourism Entrepreneurs (FEHT) also claimed that the tax would impose excessive administrative work on hospitality businesses, which goes against the principles of fairness and cost minimisation.

FEHT argued that the ordinance for the tax was poorly written and included confusing terms that made it hard to enforce. According to the ruling, the tax will remain suspended until the TSJC reviews the council's arguments, which Mogán plans to submit once it receives the official notification from the court.

The council previously said it would become the first tax in Spain at a municipal level. The tax will extend to those staying in tourist accommodation within the municipality, such as hotel complexes and holiday homes.

However, it will be the owners of these properties that must pay the tax to the Mogán Town Hall for six-month periods. This is due to local councils not having the power to impose overnight stay taxes, so it will be imposed as a charge for local services instead.