Summary
- Royal Decree-Law 26/2026 removes the VAT exemption for specified short-term furnished rentals and applies the reduced 10% rate.
- The 10% rate is extended to qualifying renovation and repair work on dwellings intended for habitual residential leasing.
- The 4% rate is extended to qualifying officially protected housing with permanent or indefinite protected status supplied by the developer.
Extended article
Spain has adopted important VAT changes within Royal Decree-Law 26/2026 on housing and affordable supply. From 1 December 2026, furnished accommodation rented to the same customer for no more than 30 nights becomes taxable at 10%, unless the property is the landlord’s habitual residence. Rentals supplied together with hotel-type services are also covered by the taxable treatment.
The decree also broadens the reduced 10% rate for qualifying renovation and repair work to dwellings intended for habitual residential leasing, subject to the statutory requirements. In addition, the super-reduced 4% rate is extended to officially protected housing with permanent or indefinite protected status when supplied by the developer. The decree entered into force generally on 1 October 2026, but these VAT changes have their own 1 December 2026 effective date and remain subject to the constitutional parliamentary validation process applicable to decree-laws.
External sources: Read Royal Decree-Law 26/2026 | Read the Spanish Tax Agency summary
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