10% VAT on tourist rentals from december 2026: What changes for property owners?

Many owners of holiday homes who work with us have been asking about VAT on tourist rentals. From December, a reduced tax rate of 10% will apply. What will change for property owners? Who will be affected, and what are the exceptions?

In this article, I go through all the key VAT tax rules you need to know if you are going to advertise a tourist property or short-term rental from December onwards.

This measure has now been ratified. On 12 November 2026, the Permanent Deputation of the Congress of Deputies approved it by 35 votes to 34.

How the new VAT rules affect owners of tourist accommodation

From 1 December, tourist accommodation rentals will no longer be exempt from VAT and will instead be subject to the reduced rate of 10%, the same rate that applies to hospitality services. This amendment affects both private property owners and companies operating this type of accommodation.

The exception will be rentals of properties that constitute the landlord’s own main residence, which will remain exempt from the tax.

New tax obligations for property owners

With this change coming into force, owners of tourist apartments will have to adjust their tax status to comply with their new obligations. Among other things, they will have to register for VAT, charge the applicable 10% on each booking and issue invoices for stays.

They will also have to file the relevant periodic VAT returns using Form 303, as well as the annual summary return where applicable. This means taking on new administrative tasks and keeping closer track of the income and expenses associated with operating the tourist accommodation.

However, applying VAT will also allow property owners to deduct the input VAT incurred on expenses related to the activity. These include renovation work, furniture purchases, cleaning services and commissions charged by intermediary platforms such as Airbnb or Booking.

Therefore, the financial impact of the measure will depend on how the accommodation is managed. Owners who operate their properties directly may benefit from deductions for expenses associated with the activity, while those who have transferred the operation to a third party will experience a different impact, depending on the contractual arrangement and how expenses and income are allocated.

Property tax surcharges for tourist accommodation

VAT will not be the only tax change that may affect owners of tourist accommodation. At the same time, local councils in municipalities designated as stressed residential market areas may introduce surcharges on Property Tax (IBI) for properties used for tourist rentals.

These surcharges may reach different percentages depending on the number of tourist properties owned by each landlord:

• Up to 50% of the net IBI tax liability: for owners with one tourist property.
• Up to 100%: for those with two or more properties used for this purpose.
• Up to 150%: for owners with four or more tourist properties.

It is important to note that these increases will not apply across the board throughout Spain. Each local council will have to decide whether to introduce the surcharges and set out the specific conditions in the relevant local tax bylaw.

The aim of this measure is to limit the conversion of residential properties into tourist accommodation and encourage some of these properties to return to the long-term rental market.

New requirements for seasonal rentals

In addition to the tax changes, the regulations also tighten the conditions that a contract must meet to qualify as a seasonal rental.

From now on, the temporary nature of the rental must be based on a specific, genuine and demonstrable reason, such as work-related, academic or other circumstances that justify the property not being used as the tenant’s main residence.

This circumstance must be expressly stated in the contract, and the landlord must be able to demonstrate that there is a reason justifying the temporary duration of the rental.

Therefore, simply setting a fixed duration will not be enough for a contract to qualify as a seasonal rental. If the reason for the temporary arrangement is not properly justified, the tenancy may become subject to the legal framework governing rentals of main residences, with the legal consequences that this entails.

Which rentals are actually affected by the new 10% VAT?

There is one aspect of the new regulation that is worth keeping firmly in mind: the rule does not restrict its application to registered tourist properties or accommodation advertised on platforms such as Airbnb or Booking.

Article 7 of Royal Decree-Law 29/2026 of 6 October amends Article 20(1)(23) of the Spanish VAT Act 37/1992 and establishes two circumstances in which the rental of furnished apartments or homes is no longer exempt:

• Where the landlord provides supplementary services typical of the hotel industry, such as restaurant services, cleaning or laundry.
• Where the rental period for the same tenant does not exceed 30 nights, unless the property is the landlord’s own main residence.

Therefore, the legal test does not depend on whether the property has a tourist licence or is marketed through a digital platform, but rather on the characteristics of the accommodation, the length of the rental and the services provided by the owner.

This has an important consequence: calling a contract a “seasonal rental” is not enough to preserve the VAT exemption. The actual terms of the rental must be examined to determine whether it falls within any of the circumstances set out in the Act.

It is also worth distinguishing between the two circumstances: the exception relating to the landlord’s main residence is expressly linked to the criterion of a rental period of 30 nights or less, not to the provision of hotel services.

What happens to bookings made before 1 December?

This is one of the questions that may cause property owners the most uncertainty: does the new VAT have to be applied to a booking confirmed before 1 December if the stay takes place after that date?

To answer this correctly, it is necessary to consider a fundamental concept in the tax system: the chargeability of VAT.

Chargeability is the point in time at which a transaction is deemed to have taken place for tax purposes and the obligation to charge and report the tax arises. It does not always coincide with the date on which the service is provided or the booking is made.

In the case of rentals, Article 75(1)(7) of the VAT Act provides that VAT becomes chargeable when the relevant part of the price for each rental period falls due. In addition, Article 75(2) sets out a specific rule for advance payments: VAT becomes chargeable when they are received, on the amounts actually collected.

Therefore, to determine the tax treatment of a booking that spans the date on which the new legislation comes into force, several circumstances will need to be examined:

• Booking date: when the accommodation was confirmed and booked.
• Payment due date: when the price was payable under the contractual terms.
• Date of receipt: when the property owner actually received the money.
• Advance payments: whether a deposit, part of the amount or the full booking price was collected before the stay.
• Date the accommodation is provided: when the rental actually takes place.

Does the 10% VAT apply? An example

Let’s look at an example:

• Booking: 20 October 2026.
• Stay: 20 to 27 December 2026.
• Price: €1,000.

It would not be correct to answer solely on the basis of the booking date. If an advance payment was collected before 1 December, it will be necessary to analyse how the chargeability rule for advance payments applies and what the tax treatment of the transaction was at that time. If payment falls due or is collected after the new rules come into force, the analysis may be different.

The Spanish Tax Agency sets out these general rules in its section on when VAT becomes chargeable, although that information does not establish a specific transitional rule for all accommodation bookings that span 1 December.

Therefore, you should not assume that all bookings made before that date are exempt or that all stays taking place afterwards must automatically be taxed on the full amount. Each transaction must be analysed in light of its contractual and tax circumstances.

Could the new VAT rules change after the 29 November election?

The new tax rules are due to come into force at a particularly significant political moment: the general election on 29 November 2026.

To understand what may happen to the new VAT rules, it is worth first reviewing how the legislation was approved.

As you can see, the election takes place just two days before the new tax rules are due to come into force.

There is, however, a fundamental legal point: a change of Government does not automatically repeal regulations approved by the previous administration.

Royal Decree-Law 29/2026 has already completed the parliamentary ratification process. Article 86(2) of the Spanish Constitution provides that decree-laws must be debated and put to a vote in Congress within 30 days of their enactment.

In this case, because Parliament had been dissolved, ratification fell to the Permanent Deputation, which agreed to keep the decree in force on 12 November. The agreement was published in the BOE through the Resolution of 12 November 2026.

What does this mean for property owners?

1. The decree can no longer lapse due to a failure to ratify it

That process has already been completed. The precedent set by the first decree shows that a decree-law can be repealed by Congress, but the second one now has the corresponding parliamentary approval.

2. The new Government may amend the tax rules at a later date

The new Parliament may introduce a legislative initiative to amend or repeal the regulation. Another instrument with sufficient legal standing may also be approved to introduce changes to VAT.

However, the relevant legislative procedure will have to be followed. The election result alone does not change the tax treatment of tourist rentals.

3. A subsequent amendment would not automatically remove previous tax liabilities

Let’s imagine that the 10% VAT begins to apply on 1 December and that, a few weeks later, a new law is passed amending or abolishing this tax treatment.

That does not mean that transactions carried out during that period automatically become exempt. The effective date of the new provision must be taken into account, together with any transitional rules it may establish.

Ultimately, property owners should act in accordance with the legislation currently in force and should not base their tax decisions on potential political changes that have not yet materialised.

Do I have to pay VAT if I am a private individual and not a company?

Yes. You may be required to charge VAT even if you are an individual and have not set up a company.

The reason is that the VAT Act uses a definition of a business or professional person that does not necessarily match the meaning of those terms in everyday language.

Specifically, Article 5(1)(c) of the Spanish VAT Act 37/1992 considers as business or professional persons those who carry out transactions involving the exploitation of tangible or intangible property with the aim of obtaining income on an ongoing basis.

This definition may include a private individual who regularly rents out a furnished apartment to generate a return.

Therefore, you may find yourself in the following situation:

• You are an individual.
• You own a property.
• You rent it out regularly to earn income.
• You are considered a business or professional person for VAT purposes.

This does not mean that you have to set up a limited company, nor that you automatically have to register as self-employed under the Special Scheme for Self-Employed Workers (RETA) simply because you rent out a property.

Nor does it mean that the income must necessarily be treated as income from an economic activity for Personal Income Tax (IRPF) purposes.

VAT and Personal Income Tax are different taxes, and each uses its own criteria to determine who qualifies as a business or professional person and how income must be reported.

Therefore, being a private property owner does not, in itself, provide grounds for exemption from the new VAT on short-term rentals.

What should I do if I own a tourist property?

The new tax rules coming into force mean that property owners need to review how they manage their accommodation and what tax obligations they will have to meet from 1 December.

Nevertheless, the best approach is to prepare for the changes carefully and avoid rushing into decisions that could unnecessarily affect the business.

Here are five points worth reviewing:

1. Check your bookings and the length of stays

Pay particular attention to contracts and bookings where the rental period for the same tenant does not exceed 30 nights. Remember that rentals may also be subject to VAT if supplementary services typical of the hotel industry are provided, even when the stay exceeds that period.

2. Review your pricing policy

Calculate how adding 10% VAT would affect the price of each stay. You will need to consider whether to pass the tax on to the customer in full or absorb part of the cost to keep your rates competitive.

3. Organise invoices and operating expenses

Keep and organise invoices for utilities, repairs, renovation work, furniture, cleaning, maintenance and other services related to the accommodation. If the activity is subject to VAT and the legal requirements are met, these expenses may entitle you to deduct the input VAT incurred.

4. Check how your booking platform operates

If you use Airbnb, Booking or other intermediaries, review how they handle payments, advance payments, commissions and invoicing. It is important to distinguish between the amounts received by the property owner and those charged by the platform for its intermediation services.

5. Review your tax obligations

If your activity falls under the new regime, you will have to update your tax registration details and your VAT invoicing and reporting obligations. It is advisable to review these matters with a tax adviser before the new tax rules begin to apply.

Ultimately, the regulatory change means you need to prepare, but also understand correctly which transactions it affects and from when. Not all rentals necessarily receive the same tax treatment, and each owner’s circumstances may change the tax obligations they have to meet.

Do you own a tourist property in Benalmádena or Torremolinos? Leave its management to professionals

If you own a tourist apartment, house or villa in Benalmádena or Torremolinos, Vacation Benalmádena & Torremolinos offers a comprehensive holiday rental management service so that you can delegate the administration of your property.

We specialise in mid-to-high-end and luxury properties, including two-bedroom apartments with sea views, flats with three or more bedrooms, houses, townhouses and exclusive villas.

We take care of the entire management process, including tourist licence applications, preparation of legal documentation, administrative procedures and the arrangements required to get your holiday rental up and running. We also coordinate bookings, guest services, cleaning, maintenance and price optimisation.

This means you can rely on a local team that takes care of the day-to-day operation of your accommodation and the arrangements required to operate it as a tourist rental.

Explore all our property management services for owners and find out how we can help you manage your tourist property in Benalmádena or Torremolinos.

Would you like to rent out your property without having to deal with all the management yourself? Contact Vacation Benalmádena & Torremolinos and request a no-obligation assessment of your property.

Regulatory sources and applicable legislation

For further information about the tax changes affecting tourist property rentals, here are the main legal provisions and official sources to consult:

1. Royal Decree-Law 29/2026 of 6 October. Article 7, which amends Articles 20(1)(23) and 91(1)(2)(2) of the VAT Act.
2. Act 37/1992 of 28 December on Value Added Tax. Articles 5, 20, 75 and 91, concerning the status of business or professional persons, exemptions, chargeability and tax rates.
3. Resolution of 2 October 2026. Agreement to repeal the first Royal Decree-Law 26/2026.
4. Resolution of 12 November 2026. Agreement to ratify Royal Decree-Law 29/2026.
5. Spanish Constitution. Article 86, concerning the regulation and ratification of decree-laws.
6. Royal Decree 806/2026 of 5 October. Call for a general election and constitution of the new Parliament.
7. Spanish State Tax Administration Agency (AEAT). Official information on when VAT must be charged, chargeability and advance payments.