The owners of large mansions in the Balearic Islands and homes with swimming pools will pay more for their water starting next year. The Balearic Government is working on an increase in the surcharge for large water consumers, which will primarily impact the hotel sector in the Islands, as well as industries with high water usage. However, it will not only affect these sectors. Owners of large mansions and homes with swimming pools will also feel the increase, as it will apply to private residences as well.
The government has not yet specified the amount of the increase, as it is first focusing on finalising two major legislative projects under the Vice Presidency: the administrative simplification decree and the Budget Bill. Both are currently undergoing parliamentary procedures, with the former nearing approval by Parliament.
As with homes built on rural land, there is no definitive census of the number of swimming pools in the Balearic Islands. However, the most reliable data available is from 2019, when the figure reached 70,000 pools. Since then, the environmental group GOB has conducted a study estimating that an average of 17 new pools are authorised per week.
If the estimates from the organisation, led by Margalida Ramis, are accurate, approximately 5,000 additional pools have been authorised over the years, bringing the total to around 75,000 across the four islands. However, this number would need to include the many pools built illegally over the years, which can now be legalised thanks to the extraordinary process initiated under the administrative simplification decree.
The increase in the water levy for these facilities will be approved before spring through a decree-law expected to be endorsed by the Government at the end of February, according to the Vice President and Minister of Economy, Antoni Costa. At that point, the exact details of the increase will be revealed. However, the Government's budget plan for next year already provides an indication of the scale of the change. Projections suggest that by 2025, once the increase is in effect, revenue will reach €112.5 million, compared to the €90.1 million budgeted for this year—representing a 25% rise in revenue. This projection comes from a “relatively inelastic” tax, as noted in the spending cap document submitted by the Government to Parliament.
The Vice President clarified that the increase will be gradual, based on the level of consumption by both economic sectors and private citizens. Thus, the 25% rise in revenue does not mean a uniform 25% increase in the levy for all consumers. For instance, the increase could be even greater for large consumers, such as the hotel sector or large mansions, while for some small homeowners with pools, it might range from 10% to 15%. These specifics will be outlined when the finer details of the policy are finalised.
In any case, the Balearic governme t emphasised that while the levy will increase for large consumers, a reduction will also be introduced for those who consume the least. According to Antoni Costa’s department, the goal is to reward responsible water use, ensuring that those who consume more pay more, and vice versa. Costa explained that the objective is to make the levy increasingly progressive. This approach aligns with the decision to raise the rate for high consumption while reducing it for low consumption. He also pointed out that the water levy began to be progressive during the administration of José Ramón Bauzá, as it had previously been a flat fee.
Costa has called on the municipalities of the Balearic Islands to join the initiative for responsible water consumption and adopt progressive tariffs, as the Government plans to do with the levy. He expressed regret that there are still major municipalities on the islands that maintain a flat water rate, despite water being a scarce resource. The hotel sector has already spoken out against the proposed levy increase when it was announced by Marga Prohens. "We consider the announced increase in the water levy for large consumers to be highly misguided," they stated in a press release, in which they also criticised the proposed increase in the eco-tax.