Real Decreto 29/2026 (a Spanish government decree) was published on 7 October 2026, introducing significant tax changes for tourist accommodation, particularly with regard to VAT and the Real Estate Tax (IBI).
However, the measure is pending validation by the Congress of Deputies, which must rule on it within a maximum of 30 days from its publication. Should it not be validated, the Real Decreto would be repealed.
- Short-term tourist lettings will be subject to 10% VAT
One of the main new developments is the application of 10% VAT to short-term lettings of dwellings for tourist use, where a single tenant’s stay does not exceed 30 nights.
Until now, the letting of a tourist dwelling without services typical of the hospitality industry was, as a general rule, exempt from VAT. Under the new regulation, such lettings would be taxed at 10%.
Under the terms of the regulation, the following would be excluded from this new treatment: lettings of the owner’s habitual residence, as may be the case when renting out a room, and stays exceeding 30 nights.
The measure is scheduled to apply from 1 December 2026, although its effective entry into force is subject to parliamentary validation.
Meanwhile, accommodation that is already subject to 10% VAT because it provides services typical of the hospitality industry, such as regular cleaning during the stay, changes of bed linen or catering services, would retain that rate.
- New tax obligations for owners
The application of VAT will not only affect the price of bookings; it will also entail new administrative and tax obligations for many owners.
The main obligations include the following:
- Census registration: owners must complete the tax formalities required to carry out the activity for VAT purposes.
- Invoicing: they must charge VAT on each booking and issue the relevant invoices.
- Periodic returns: they must file quarterly VAT returns and an annual summary return.
- Deduction of input VAT: provided they meet the legal requirements, they may deduct the VAT paid on expenses related to the activity.
Such expenses may include utilities, cleaning services, maintenance and repairs, the purchase of furniture, and management or booking platform fees.
Therefore, although the new tax treatment entails a greater administrative burden, it will also allow VAT to be deducted on certain expenses linked to the accommodation.
- Possible surcharges on the Real Estate Tax (IBI)
Another new development is the possibility that certain owners may have to pay a surcharge on IBI.
The regulation empowers town and city councils in municipalities located in stressed residential housing market areas to impose a surcharge on the net tax liability (cuota líquida) of IBI for residential properties used as tourist accommodation.
As currently envisaged, this surcharge could range from 50% to 150%, depending on the number of properties the owner holds, in accordance with the criteria set out in the regulation.
- What should owners do now?
In light of these changes, owners should review their tax position and assess the economic impact before setting prices for future bookings.