Tax for tourism: retirement and the case of the Balearic Islands in Spain

Abstract

[eng] In 2008, the south of Europe was strongly submitted under the effects of the global financial crisis, which exposed the economic weaknesses of countries alike: Portugal, Greece, Italy, France, and Spain. However, merely Portugal intended to provide a non-traditional solution for the rise of the fiscal base and the number of taxpayers. That was the application of NHR tax regime. Since 2019 Italy and Greece have tried to implement it, evidencing the positive impacts that tax for tourism provided, and suggesting the probability of another purpose: The Balearic Islands. According to the economic impact provided by tax for tourism destinations, this research addresses the importance of the application of this model, providing incentives for the countries. Tax for tourism will allow to obtain a new source of fiscal outcome, approached by seniors in retirement. The impact on general government deficit and the number of taxpayers demonstrated the viability of this model, permitting its application, and consolidating tax for tourism as a new trend of the tourism industry.