Spain Considers Imposing 21% VAT on Tourist Rentals to Boost Long-Term Housing Availability

• Spanish government considering applying 21 percent VAT to vacation rentals
• Housing crisis in Spain with high rental prices and lack of availability
• Tourism apartments blamed for driving up prices and taking properties off the market for locals
• Holiday lets more profitable than long-term rentals in Spain
• Regulations introduced to reduce short-term lets, including stricter rules and potential bans in Barcelona
• Proposal to charge 21 percent VAT to landlords renting to tourists to make it less attractive
• Aim to transform tourist rentals into housing for permanent rental to alleviate housing shortage
• Landlords currently exempt from VAT if they do not provide hotel-like services
• Proposal to charge 21 percent VAT regardless of services provided to tourists
• Experts divided on whether this measure will help or just pass on costs to consumers.

Source: thelocal.es

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

---

---