10% VAT on holiday lets in Spain from 1 December 2026: what owners need to know

From 1 December 2026, letting a holiday home in Spain for stays of up to 30 nights is set to carry 10% VAT, even if you don't provide hotel-type services. That's what Royal Decree-law 29/2026 says, and it still needs to be ratified by Parliament. If it is, you'll need to register for VAT, charge it on every booking and file a return every quarter.

It's the biggest tax change for holiday-let owners in years, and it lands just as the tax year closes. Here's what the rule says, who it affects and what to get ready now. This is general information: always check your own situation with a tax adviser.

What exactly does Royal Decree-law 29/2026 say?

Royal Decree-law 29/2026 of 6 October, published in the Official State Gazette (BOE) on 7 October and in force since 8 October, amends the Spanish VAT Act. According to the Spanish Tax Agency's summary, with effect from 1 December 2026:

• Lettings of furnished apartments or homes lose the VAT exemption when the stay by the same guest is no longer than 30 nights and the property isn't the owner's main home (article 20.One.23 of the VAT Act).
• Those lettings move to the reduced 10% rate (article 91.One.2.2).

Until now, a holiday let without hotel-type services (no cleaning during the stay, linen changes, meals or reception) was VAT-exempt. Only owners offering those services charged VAT.

	Until 30 November 2026	From 1 December 2026 (if ratified)
Holiday let without hotel services	VAT-exempt	10% VAT (stays of up to 30 nights)
Holiday let with hotel services	10% VAT	10% VAT
Mid-term let (more than 31 days)	Exempt	Exempt
Long-term residential let	Exempt	Exempt

Is it certain yet? The ratification vote

Not quite. A royal decree-law applies from publication, but Parliament has 30 days to ratify it. With the Cortes dissolved ahead of the general election on 29 November, the vote falls to the Standing Committee of Congress (Diputación Permanente), which the Spanish press expects to meet in mid-November.

• If it's ratified, 10% VAT applies from 1 December.
• If it isn't, the decree lapses and holiday lets without hotel services stay exempt. That's exactly what happened to the previous version, Royal Decree-law 26/2026, which Congress voted down on 2 October.

We'll update this article as soon as the vote takes place. Until then, the sensible approach is to prepare as if it will apply: if it doesn't, you've lost nothing.

Who does it affect?

Almost every owner letting a home to holidaymakers on the Costa del Sol:

• Individuals and companies, whether or not you're tax-resident in Spain. The property is here, so the VAT is Spanish even if you live in London or Stockholm.
• With or without a management company. If you work with a manager like ERA, you're still the one letting the home; we charge our fee with its own VAT, as now.
• Every channel: Airbnb, Booking, your own website or direct bookings.

It doesn't affect stays of more than 30 nights (a winter mid-term let with a genuine reason, for instance) or renting out rooms in the home you live in. If you're weighing up the two models, see holiday let or mid-term rental.

What would you need to do if it applies?

If the decree is ratified, holiday letting becomes a VAT-able activity. In practice:

1. Register for VAT with the census return (Modelo 036), declaring the holiday-letting activity.
2. Charge 10% VAT on each stay and document it with an invoice (or simplified invoice).
3. File Modelo 303 every quarter plus the annual summary. Under the Tax Agency's calendar, the fourth quarter of 2026 (which would include December) is due by 30 January 2027.
4. Reclaim the VAT on your costs linked to the letting: management fees, cleaning, repairs, utilities or furniture, in the right proportion. If you mix holiday months with (exempt) mid-term months, you'll only recover part of it.
5. If you live outside Spain, you'd need to comply with Spanish VAT on top of Modelo 210 non-resident income tax; depending on your country, you may need a tax representative. We cover the income-tax side in non-resident holiday rental tax in Spain.

One point to raise with your adviser now: how to treat bookings already paid for stays after 1 December. It depends on when the money was received and how the change is applied, so don't leave it until January.

How does it affect your prices?

The real question is who pays the 10%. There are two options:

• Raise your rates so the guest pays the VAT. You keep the same income, but your listing looks pricier than the one next door that hasn't adjusted yet.
• Keep the final price with VAT included. The guest notices nothing, but you earn less: on a €1,000 stay including VAT, €909.09 is yours and €90.91 is VAT.

On the Costa del Sol, December to February are low-price months with plenty of competition, so there's no single answer. For the homes we manage, we'll review each rate individually: area, type of guest, average stay and how much VAT on costs you'll be able to recover.

What the tax office already knows: Modelo 238

This change comes at a time when the Spanish tax office has more data than ever. From the 2024 tax year the old Modelo 179 (intermediaries' return on holiday homes) is no longer filed: it has been replaced by Modelo 238, approved by Order HAC/72/2024 to implement the EU's DAC7 directive. Platforms such as Airbnb and Booking file it every January with each host's details: identity, address and cadastral reference of the property, nights let, amounts per quarter and fees.

Two practical consequences as the year closes:

• Whatever you declare for 2026 (on your Spanish income tax return or Modelo 210) has to match what the platform reports. Check your statements before spring.
• Direct and website bookings don't appear on Modelo 238, but they still have to be declared.

Council tax (IBI) may go up too

The same decree lets town halls add a surcharge of up to 50% on the IBI (property tax) of homes used as holiday lets, which can be higher for owners of several residential properties. It can only apply in municipalities declared a stressed residential market area and only if the council approves it in a tax by-law. We'll follow it town by town in the areas where we manage homes, such as Marbella, Puerto Banús and Benalmádena.

Frequently asked questions

Does the VAT count as income on my tax return? No. The VAT you charge is paid over to the tax office; for income tax you declare the rent net of VAT. Your deductible expenses work the same way as before.

If I let for 35 nights in a row to the same person, is there VAT? According to the published text, no: the 10% applies to stays of up to 30 nights. But a let of more than 31 days is a mid-term rental with its own rules (a genuine reason and a contract).

Do I need to change anything about my VFT licence? No. VAT is a tax matter: the Andalusian tourist rental licence and guest registration on SES Hospedajes stay the same.

How ERA helps

In the owner portal you'll find every booking, statement and expense invoice organised by month, which is exactly what your adviser will need for Modelo 303 and to reconcile Modelo 238. If the decree is confirmed, we'll agree a pricing strategy with you from December onwards.

Own a home on the Costa del Sol and want to know how this affects you? We'll prepare a free study of your property, with income, costs and tax explained. Request your free study here.