Tourist rentals in Spain will be subject to 10% VAT from 1 December 2026 under a new housing decree issued yesterday (8 October).
The accommodation had previously been exempt from VAT, meaning the change could affect the cost of villa and apartment holidays.
The legislation also gives town halls in designated ‘housing pressure zones’ the power to increase property taxes on homes used for tourist accommodation.
The additional annual property tax, known as IBI, can be increased by 50% for properties used as tourist rentals. This can rise to 100% for owners with two or more such properties and 150% for those with four or more.
The measures come amid growing pressure over housing affordability in Spain, where tens of thousands of people have protested this week in major cities, including Madrid and Barcelona.
The Spanish Government reported that tourist accommodation accounts for 10% of Spain’s rental market.
