Politics · Spain · 3 hrs ago
Spain plans 10% VAT on tourist apartments from December
Spain plans to charge tourist apartments 10% VAT from 1 December, under a measure included in government decrees awaiting approval by a parliamentary body.
The change would bring these rentals closer to other types of accommodation for tax purposes.
Until now, apartments without hotel-style services such as cleaning during a stay or food service have been exempt from VAT, and owners could not deduct related costs.
Once the change takes effect, owners will pay VAT but can also deduct eligible expenses such as cleaning and repairs.
Tax experts say those deductions may offset some or all of the tax, so the change may not persuade owners to switch to long-term rentals.
Owners may instead pass the VAT on to visitors, making short stays more expensive while preserving their own margins.
Experts say demand would have to fall sharply before that higher cost made long-term renting more attractive to owners.
The measure is included in decrees that still need approval, and its effect on tourist rentals remains uncertain.
Spain plans to make tourist apartments pay 10% value-added tax from December 1, 2026.
The Government says the tax could help curb the growth of tourist apartments and encourage long-term rentals.
The measure is included in a decree that is awaiting approval by a parliamentary body.
Tax experts say owners may offset some or all of the tax through deductions for business expenses.
Owners could also pass the tax on to visitors, making stays more expensive.
- Who
- The Spanish Government plans to impose the tax on tourist-apartment owners.
- What
- Tourist apartments will be subject to 10% value-added tax.
- When
- From December 1, 2026.
- Where
- Spain.
- Why
- The Government says the measure could help curb the spread of tourist apartments and bring their tax treatment closer to that of other accommodation businesses.
Spanish Government
Tax experts
Effect on tourist-apartment growth
Spanish Government
The Government sees the tax as a way to discourage owners from offering homes for short-term rentals.
Tax experts
Experts say deductions for expenses could limit the tax’s effect on owners’ decisions.
Who bears the tax
Spanish Government
Not stated.
Tax experts
Experts say owners may pass the tax on to visitors, increasing the cost of stays.
Tourist apartments without hotel-style services were exempt from VAT, and owners could not deduct related expenses.
The Government included the tax measure in a decree published in Spain’s Official State Gazette.
The decree was awaiting approval by the Permanent Deputation of the Congress of Deputies.
Tourist apartments are due to begin paying 10% VAT.
- Tax rate
- 10% VAT
- Start date
- December 1, 2026
- Affected accommodation
- Tourist apartments
- Decree status
- Awaiting approval by the Permanent Deputation of the Congress of Deputies
- Deductible expenses cited
- Cleaning, painting, plumbing, electricity and furniture
What people are saying
and therefore it will be worthwhile for them to continue renting
There are essential elements in the activity subject to VAT such as electricity, cleaning, renovations, furniture, painting or plumbing that can now be deducted
You might think demand could suffer because of the higher price, but it would have to fall enormously to reverse the market and make long-term rentals more worthwhile to landlords than short-term rentals