Spain plans 21% VAT on Short-Term Rentals

The Spanish Government has unveiled a proposal to tighten fiscal rules in the housing sector, including higher taxes on short-term rentals and stricter obligations for digital platforms.

Tourist accommodations offering hotel-like services (reception, cleaning, etc.) would see VAT rise from 10% to 21%. Municipalities could impose up to a 100% surcharge on property tax for certain buyers, mainly non-EU residents.

Landlords must prove the temporary nature of stays. If not, agreements could be reclassified as long-term leases retroactively.

Reporting obligations: Platforms like Airbnb and Booking would need to submit more detailed reports on landlords and transactions.

Non-compliance could lead to fines up to €1 million or 2% of global turnover, with smaller penalties for incomplete or inaccurate data. These measures align with the EU’s ViDA reform on the platform economy.

The housing package, set to be introduced via Royal Decree, now awaits approval from Congress.