Spain Proposes 21% VAT on Short-Term Tourist Rentals, Ending Current Exemption

• Spain’s government is considering a 21% VAT on short-term tourist housing rentals.
• A draft bill was submitted by the Socialist Parliamentary Group on 22 May 2025.
• The bill aims to align the VAT treatment of short-term rentals with hotel accommodations.
• Currently, short-term rentals are exempt from VAT unless hotel-like services are provided.
• The proposed bill would apply a 21% VAT to short-term leases under 30 days in towns with over 10,000 inhabitants.
• The reduced 10% VAT rate for rentals with hotel services would no longer be available.
• 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.

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