Business · Economy · 1 day ago
Golf groups seek a 10% VAT rate, saying tourism could offset the cut
Spanish golf groups are asking the government to cut VAT on golf services from 21% to 10%.
They presented an EY study during the Spanish Open, arguing that the lower rate could be offset by economic activity linked to golf tourism.
The study estimates that the tax cut would initially reduce direct revenue from golf courses by €35.2 million.
It says increased activity and tourist spending could make up for that loss, with more than 90% of the projected offset coming from tourist spending outside golf courses.
That spending includes hotels, restaurants, transport and shops.
The study estimates the change could leave the government with €2.5 million in additional revenue, assuming demand rises by 5.03%.
Spain receives about 1.4 million international golf tourists a year, and the proposal is especially relevant to Andalusia, a major golf destination.
The next step is for lawmakers to consider the tax proposal; sports groups have also asked for a lower VAT rate for other sporting activities and professional events.
Spanish golf groups are seeking a cut in value-added tax from 21% to 10%, arguing that tourism spending could offset lost tax revenue.
An EY report commissioned by the groups estimates the tax cut would initially reduce direct revenue by €35.2 million.
The report says increased activity and golf-tourist spending could compensate for the loss and leave the government with €2.5 million in additional revenue.
More than 90% of the projected compensation comes from extra tourist spending on hotels, restaurants, transport and shops.
The proposal was presented alongside the Spanish Open and is part of a broader sports-sector campaign for lower VAT.
- Who
- The Royal Spanish Golf Federation and the Spanish Association of Golf Courses, supported by the Spanish Sports Association.
- What
- They are seeking a 10% VAT rate for golf, down from 21%. An EY report says related economic activity and tourism spending could offset the lost revenue.
- When
- The proposal and report were presented on the Friday coinciding with the Spanish Open. The article was published on October 10, 2026.
- Where
- Spain.
- Why
- The groups say lower VAT could boost golf activity and tourist spending enough to compensate for the initial loss in tax revenue.
This story does not have two clearly opposing sides.
No direct quotes in the coverage so far.
Golf’s VAT rate rose to 21%, according to the article.
The golf federation and golf-course association presented the EY report and called for a 10% VAT rate.
- Current golf VAT rate
- 21%
- Requested golf VAT rate
- 10%
- Initial direct revenue reduction estimated by EY
- €35.2 million
- Projected additional government revenue
- €2.5 million
- Annual international golf tourists to Spain
- Around 1.4 million
- Golf-sector jobs in Spain
- 132,994 direct, indirect and induced jobs
Sources
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