Spain’s holiday lets face 10% VAT from December
Spain’s holiday lets face a phased 10% VAT charge from 1 December 2026. It applies to stays of fewer than 30 nights when the property is not the landlord’s main home. The change is part of a housing decree that takes effect on Thursday, 8 October 2026.
Booking platforms face fines
The decree aims to stop homes being diverted from longer-term renting into short stays. Holiday booking platforms that fail to pass required information to the authorities face fines of up to one million euros or 2% of their turnover.
Rental listings must also show the price index and the rent charged over the previous five years. Landlords cannot pass management fees on to tenants.
From 1 January 2027, municipalities can add up to 150% to property tax on tourist-use homes and empty properties. The decree gives them that option; it does not require them to use it.
Short-term contracts face tighter rules
A temporary rental contract without a justified reason will automatically become a standard residential tenancy. The same applies when more than two temporary contracts run consecutively. For room rentals, the combined rent cannot exceed the rent for the whole property.
The deadlines differ: the decree takes effect in October, the holiday-let VAT measure starts in December, and municipalities gain the option of a property-tax surcharge in January.
Source: Europa Press / Mallorca.com