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Spain approves new Vape tax: how will it affect consumers?

New Vape Tax: How Will It Affect Consumers?

As of April 1, 2025, a new tax on vape liquids will come into force in Spain, affecting both nicotine and non-nicotine products. This measure, approved by the government, is part of a broader tax package that seeks to bring the taxation of vaping into line with that of traditional tobacco.

The news has generated a strong debate among consumers, entrepreneurs in the sector and vape associations, who warn that the increase in prices could negatively impact those who use electronic cigarettes as an alternative to conventional tobacco.

Details of the new tax: how much will vaping cost?

The new tax will affect all e-cigarette liquids sold in Spain, and will be applied as follows:

Type of liquid	Tax applied
Liquids without nicotine or up to 15mg/ml	0.15€ per ml + VAT
Liquids with more than 15mg/ml of nicotine	0.20€ per ml + VAT

This increase will result in an increase in the final prices of the products. For example:

• A 10ml bottle with 10mg/ml of nicotine will increase 1.50€ + VAT due to the tax.
• A 10ml bottle with 20mg/ml of nicotine will suffer an increase of 2€ + VAT per bottle.

The aim of the Executive is to reduce nicotine consumption, applying a model similar to the excise tax on tobacco. However, experts warn that the impact could be counterproductive, boosting the black market and hindering access to regulated products.

How much will vape liquid prices increase?

To better understand the real impact of this new tax, let's take some practical examples of how it will affect the final price of vape liquids:

• A 10ml bottle with 10mg/ml of nicotine → It will increase by 1.82€ due to the tax (10ml x 0.15€ + VAT).
• A 10ml bottle with 20mg/ml nicotine → Will increase in price by 2.42€ (10ml x 0.20€ + VAT).
• A 50ml bottle without nicotine (Shortfill) → Will cost 9.08€ more due to the tax (50ml x 0.15€ + VAT).

Market impact: This tax not only affects ready-to-vape liquids, but also the Shortfill format which is used by many consumers to customize their blends and reduce costs.

When will the tax be applied?

The measure will come into force on April 1, 2025, so consumers will see this price increase reflected in all stores operating in Spain as of that date.

What motivates the government to implement this tax?

From the Executive they have justified the measure under two main reasons:

1. To equate vaping to traditional tobacco → The taxation of vaping in Spain was considerably lower than that of conventional tobacco, which made these products more accessible compared to traditional cigarettes. With this tax hike, the government seeks to equalize their tax burden.
2. Reduce nicotine consumption, especially among young people → Health authorities have expressed concern about the increase in vaping among adolescents and young adults, arguing that this measure may discourage their consumption by making them less affordable.

However, vape industry associations and harm reduction experts have criticized this measure, arguing that:

• Vaping is less harmful than smoking → Most studies indicate that e-cigarettes are up to 95% less harmful than conventional tobacco.
• It could push vapers back to smoking → The price increase could make some consumers consider returning to traditional tobacco, which could be more affordable in some cases.
• Black market risk → Excessive tax may encourage the purchase of unregulated liquids, which endangers consumers' health by lacking proper sanitary controls.

A booming black market?

An increase in the tax burden on vape liquids could lead to a phenomenon that has already been observed in other European countries: a growing black market for liquids without sanitary controls.

Consequences of a possible increase in the illegal vape market

• Unregulated products → Illegal liquids may contain dangerous or low-quality ingredients.
• Easier access for minors → As they are not subject to regulations, these products can be distributed without restrictions.
• Loss of tax revenue → Instead of collecting more money, the government could lose revenue if consumers choose to buy illegally sourced products.

Example in other countries: in Italy, after the implementation of a similar tax in 2014, there was a 60% increase in the black market, forcing the government to reconsider the measure.

Will Spain make the same mistake? Time will tell, but many public health policy experts believe that excessive taxation could be counterproductive.

How can consumers adapt to this change?

Faced with the impending price hike, vapers can consider different strategies to reduce the impact of the tax on their pocketbook:

1. Purchase liquids before April 2025 → If you are a regular user, you could take the opportunity to buy your products before the price hike.
2. Opt for larger formats → Liquids in larger containers can reduce the impact of the tax, especially in Longfill formats.
3. Explore DIY alternatives → Buying nicotine-free bases and flavorings to prepare liquids at home can be a way to save money.

It is important to avoid resorting to the black market, as unregulated products can pose a health hazard.