Spain Proposes 21% VAT on Short-Term Rentals to Address Housing Issues and Market Fairness

• Spain is considering a 21% VAT on short-term vacation rentals to address housing issues.
• A draft bill has been submitted to remove the current VAT exemption for these rentals.
• Current rules exempt short-term rentals from VAT unless hotel-like services are provided.
• Proposed bill would tax rentals of fewer than 30 nights in municipalities with over 10,000 residents at 21%.
• Larger municipalities like Malaga, Barcelona, Marbella, and Ibiza would be affected.
• Landlords will need to collect and remit VAT and submit necessary documents.
• Landlords can deduct input VAT on related expenses.
• The measure aims to level the playing field between short-term rentals and traditional hospitality businesses.
• It addresses tourism’s impact on the housing market and aims to reduce the attractiveness of vacation rentals compared to hotels.

Source: vatabout.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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