Spain Proposes 21% VAT on Short-Term Rentals, Doubling Hotel Tax Rate to Address Housing Crisis

• Spain is considering a new 21% VAT on short-term tourism rentals, which is double the hotel room tax rate.
• The tax would apply to rentals under 30 days and impact about a third of the 94 million annual visitors who choose home rentals over hotels.
• Currently, there is no VAT on short-term rentals in mainland Spain, while hotels have a 10% tax.
• The proposal is part of a broader bill aimed at addressing a housing crisis and may face challenges in a divided parliament.
• The government aims to ensure rental housing availability for families while maintaining tourism as an economic driver.
• A Bank of Spain report highlights a housing deficit of 450,000 homes, with significant tourist accommodation in the Canary and Balearic islands.
• Apartur, a tourism apartment owners association, claims the proposed VAT rate is discriminatory.
• The bill also proposes taxing non-EU citizens on property purchases unless it’s their primary home and increasing taxes on empty properties.
• Local authorities are limiting new tourist rental licenses in Malaga and Madrid and plan to ban them in Barcelona by 2028.

Source: zawya.com

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.

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