The royal decree-law on housing published in the BOE introduces a 10% VAT on rentals of up to 30 nights and allows municipalities to apply surcharges of up to 150% of the IBI for owners with multiple tourist properties.
Rentals of furnished homes and apartments for stays of up to 30 nights will no longer be exempt from VAT starting from December 1, 2026. The royal decree-law on housing published this Wednesday in the BOE, as reported by elperiodico.com, sets a reduced rate of 10%, below the 21% proposed by the Ministry of Housing.
The exception is limited to rentals made in the property that the landlord uses as their habitual residence. Until now, taxation depended on the services offered: if the owner provided services typical of the hotel industry, such as periodic cleaning during the stay, catering, or laundry, the operation was already subject to tax. The decree expands the cases that are no longer exempt.
In practice, those operating the accommodation will have to pass the VAT on to the customer and subsequently pay it to the tax authorities. If an owner charges 1,000 euros and keeps that price before tax, the guest would end up paying 1,100 euros. If they choose to keep the final price at 1,000 euros to remain competitive, they will have to absorb the tax and will reduce their income before VAT.
The decree also modifies the Property Tax. In municipalities declared as areas of stressed residential markets, local councils may impose a surcharge of up to 50% on the tax for tourist accommodations. If the same owner has two or more tourist properties, the surcharge may reach 100%, and if they have four or more, it could go up to 150%.
The surcharge does not apply automatically across Spain. Each council will decide whether to incorporate it and how to regulate it through its tax ordinance, so the measure will only affect municipalities that approve it.
"Those operating the accommodation will have to pass the corresponding VAT on to the customer and subsequently pay it to the tax authorities"
The reform aims to bring the tax treatment of tourist apartments closer to that of other accommodation activities. Owners with properties in stressed areas will need to review their prices and assess the impact of the municipal surcharge before the new regime comes into effect on December 1.
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