- Spain is considering a 21% VAT on short-term tourist housing rentals.
- A draft bill was submitted to eliminate the VAT exemption for short-term rentals.
- The goal is to align rental and hotel accommodation VAT treatment and address housing shortages.
- Currently, short-term rentals are VAT-exempt unless hotel-like services are provided.
- The bill proposes a 21% VAT for rentals under 30 days in towns with over 10,000 people.
- The reduced 10% VAT rate for rentals with hotel services would not apply.
- The change would allow landlords to deduct input VAT on related goods and services.
- The proposal could make vacation rentals less attractive compared to hotels.
Source: bdo.global
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.
