| The Tax Barometer is composed of four trip elements:
lodging, car rental, meals, and airport arrival and departure. Each element of the
trip is priced according to a standard purchase by a hypothetical "WTTC
Traveler" in each destination.
This trip includes
the purchase of four nights' lodging, four days'
car rental, twelve meals, and one set of international arrival and departure
airport charges. Taxes imposed on these purchases are then
identified, recorded, and developed into a sector index. Next, these elements are
aggregated into a composite index for the destination, based on the average cost of each
element included in the standardized trip. If you would like more information on the
development of the Tax Barometer, please refer to our research methodology. |
 |
Rank |
|
Total tax $ for 5-day/4-night trip: |
$124.43 |
17 |
|
Percentage of total item cost: |
11.17% |
16 |
|
Overall tax index: |
127 |
36 |
The first item in the above table represents
the combined tax total
paid by the WTTC Traveler in each of the four sectors in
Madrid. The second
item (percentage of total
item cost)
indicates what percentage of the total bill
is devoted to taxes.
The last item (overall tax index)
reflects the cumulative change in the amount
of tax paid in U.S. dollars between June 1994 and
June 2002.
The rankings show how
Madrid compares with other Tax Barometer cities; a ranking of 1
is most competitive, while a ranking of 52 is least competitive.
Summary:
Madrid currently has an
overall Tax Barometer index of 127,
indicating a 27% increase in
travel-related taxes since June 15, 1994,
the 17th highest increase among all surveyed destinations.
This change can be attributed to increases in all four sectors. Travelers can
expect to pay around $124.00 in travel-related taxes for a five-day,
four-night visit, a total that ranks as the 17th lowest among
all surveyed destinations and the 4th lowest among European
destinations. |
 |
Rank |
|
Average price for 4-day rental (mid-size) without taxes: |
$175.84 |
- |
|
Airport access fee: |
€28.00 |
 |
|
Value added
tax (VAT): |
16.00% |
- |
|
Total charges for 4-day rental with taxes: |
$235.82 |
- |
|
Total tax $ for 4-day rental: |
$59.98 |
37 |
|
Percentage of total car rental cost: |
25.43% |
41 |
|
Car rental tax index: |
138 |
31 |
|
(
in rank column indicates a tax increase in Tax Barometer No. 11)
Summary:
Taxes on car rentals in Madrid have risen 38% since
1994, the result of four separate tax increases. The first of
these occurred in the inaugural Barometer, when the Spanish consumption tax was increased 1.0%.
The airport access fee has been increased three times: in 2000 (from ESP
2500 to ESP 2700), in 2001 (from ESP 2700 to ESP 3100), and in 2002
(from ESP 3100 to €28.00). The total tax
collections of approximately $60.00 per four-day mid-sized car rental ranks as the
16th highest
overall, but is the fourth lowest among the 18 surveyed destinations in
Europe. |
 |
Rank |
|
Average price for 4-nights lodging without taxes: |
$603.92 |
- |
|
Value added tax
(VAT): |
7.00% |
- |
| Total
charges for 4-nights lodging with taxes: |
$646.20 |
- |
|
Total tax $ for four-nights: |
$42.28 |
17 |
|
Percentage of total hotel room cost: |
6.54% |
12 |
|
Hotel
tax index: |
117 |
37 |
Summary: Hotel taxes have increased
17% in Madrid since 1994, the result of a 1% increase in Spain's
national consumption tax. Visitors can expect to pay around
$42.00 in taxes for a four-night hotel stay, a total that ranks as the
36th highest among all 52 surveyed destinations, and the 13th highest
among the 18 surveyed destinations in Europe. |
 |
Rank |
|
Average price for 12 restaurant meals
without taxes: |
$216.67 |
- |
|
Value added tax
(VAT): |
7.00% |
- |
|
Total charges for 12 meals with taxes: |
$231.83 |
- |
|
Total tax $ for 12 meals: |
$15.16 |
13 |
|
Percentage of total restaurant meals cost: |
6.54% |
13 |
|
Restaurant tax index: |
117 |
39 |
Summary: The tax on restaurant meals, like car rentals and
hotel rooms, was increased 1.0% in 1995 when the Spanish government
increased its national consumption tax. The resulting 17%
increase in total taxes collected ranks as the 10th highest such
increase among all surveyed destinations. However, the total
amount of taxes collected, approximately $15.00 for twelve meals, ranks as the 13th
lowest overall, and is the second lowest among the 18 surveyed destinations
in Europe. |
 |
Rank |
|
International departure charge: |
€6.03 |
|
|
Airport security tax: |
€1.15 |
|
|
Total tax $ for international arrival and departure: |
$7.01 |
1 |
|
Percentage of total trip cost: |
0.63% |
4 |
|
Air passenger tax index: |
128 |
11 |
(
in rank column indicates a tax increase in Tax Barometer No. 11)
Summary:
Madrid collects less tax dollars per international airline
passenger than any surveyed destination other than Barcelona, which
collects a similar amount. Madrid's air index has been increased
three times since 1994: in 1997, when the airport security tax was
introduced; in 1998, when the international departure charge was
increased from ESP 927 to ESP 985; and in 2002, when the departure
charge was increased from ESP 985 to €6.03 and the security tax was
increased from ESP
175 to €1.15. |
 |
|
Barometer No. 1:
The national level
consumption tax was increased 1.0%, resulting in increases in the
hotel, restaurant, and car rental sectors.
Barometer No. 5:
A new airport security tax on international passengers was introduced
at a rate of ESP 175.00.
Barometer No. 6:
The international
departure charge was increased from ESP 927.00 to ESP 985.00.
Barometer No. 9:
The airport surcharge on rental cars was increased to ESP 2700.
Barometer No. 10:
The airport surcharge on rental cars was increased to ESP 3100.
Barometer No. 11:
The airport
surcharge on car rentals was increased from ESP 3100 to €28.00. Two
taxes were also increased for international airline passengers: the
international departure charge was increased from ESP 985 to €6.03 and
the airport security tax was increased from ESP 175 to €1.15. Both
increases took effect on January 1, 2002.
|
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