Originally built to connect Barcelona with the Vila de Gràcia, the Passeig de Gràcia has undergone a metamorphosis over the years, transforming from a temporary space for leisure and cafés that could be dismantled in case of war to a residential area for the Catalan bourgeoisie.
Now, after two centuries, it has become the most iconic, richest and unique shopping street in Catalonia and, according to some, in all of Spain.
This majestic avenue not only stands out for having the highest retail rents, but also plays a crucial role in the tax-free sector.
Data from the Passeig de Gràcia Association reveal that this commercial artery represents 60% of tax-free shopping in the province of Barcelona, and concentrates 40% of this activity at national level, contributing significantly to 27% of tax-free sales in Spain.
The ‘tax free’ system allows tourists from outside the European Union to shop in certain stores without paying taxes associated with their products.
Passeig de Gràcia has become a magnet for these international buyers, respecting the guidelines of the World Trade Organization (WTO) and the Organization for Economic Cooperation and Development (OECD) on taxation in the country of consumption.
Passeig de Gràcia, an avenue of luxury
According to Lluís Sans, president of the Passeig de Gràcia Association, this avenue represents 60% of tax-free shopping in the province of Barcelona, and Barcelona, in turn, represents 40% of this activity throughout Spain. These data highlight the unique importance of Passeig de Gràcia in the Spanish commercial panorama.
However, what makes Passeig de Gràcia truly unique is its diversity. With approximately 40% of its commercial offer made up of luxury brands, the avenue is described as “very mixed”.
This mix includes not only high-end brands, but also brands from the Inditex universe and a mix of restaurants, from Michelin stars to tapas bars.
According to Cushman & Wakefield, around 134,000 square meters of Passeig de Gràcia are occupied by retail space. Demand continues to increase, and the availability of premises for rent has declined significantly since the third quarter of 2021, now registering a low of 4.5%.
Referral point for “tax free” purchases
Luxury retail has been a key element in the transformation of this avenue, taking it from a financial district to become a reference point for tax-free shopping and high-end shopping experience. Brands such as Louis Vuitton, Hermes and Cartier have contributed to significant change, making Passeig de Gràcia a fundamental component of GDP generation in Barcelona.
