Some Mallorca holiday lets face 10% VAT from December

On Mallorca and elsewhere in Spain, some holiday lets face 10% VAT from 1 December 2026 under new rules for tourist accommodation. The Spanish government’s decree also gives councils in strained housing markets the option to raise property tax on tourist homes. Spain’s Official State Gazette publishes the decree on Wednesday, 30 September.

Which holiday lets face VAT

The 10% charge applies to furnished rentals whose landlords provide hotel-style services. It also applies when a stay lasts no more than 30 nights and the accommodation is not the landlord’s usual home. Until now, tourist accommodation had no specific tax rules reflecting its effect on the housing market.

The decree also extends the 10% VAT rate to renovation and repair work on homes intended for regular renting. To qualify, payment must go through a bank, the home must be at least two years old, and supplied materials must make up no more than 40% of the taxable amount.

Councils can raise property tax

In designated strained housing markets, councils can add up to 50% to the property tax bill for a home used as tourist accommodation. The limit rises to 100% when an owner has at least two such properties, and 150% when they have at least four.

A council must bring in any surcharge through its own tax rules; the decree does not impose one automatically. It also provides for a separate surcharge on homes classed as empty, with the aim of making more housing available for residential use.

Topics: Housing · Tourism · Politics · Economy

Source: Europa Press / Mallorca.com