10% VAT on holiday rentals in Spain: what it means for owners from December 2026

From 1 December 2026, short-term holiday rentals in Spain will be subject to 10% VAT, even if you don’t offer hotel-style services. It applies to every rental property that holds a tourist licence from the Junta de Andalucía and is registered as a VUT (vivienda de uso turístico, the Andalusian category for holiday lets).

That doesn’t necessarily mean you’ll earn 10% less: part of that VAT can be offset against the VAT on your expenses, and your public rates can be adjusted with a sound revenue strategy. If you own a licensed holiday let in Marbella or elsewhere on the Costa del Sol, whether you live in Spain or abroad, this is what changes and what you need to do.

Who does the new 10% VAT on holiday lets affect?

Until now, renting out a home for short holiday stays was exempt from VAT in Spain. Only hotels, hostels and AT buildings (apartamentos turísticos, purpose-built tourist apartment blocks) had to charge VAT.

With this VAT rise on tourist rentals, every apartment and flat in a residential building, and every detached villa, let for short stays (under 30 nights) becomes subject to 10% VAT. The only exception is when the property you rent out is your main home, where you are registered on the local padrón.

Does it mean you’ll earn 10% less as an owner?

Not necessarily. The impact will depend on your pricing strategy in line with supply and demand, and on how much of the VAT included in each property’s expenses you can deduct.

Owners can choose whether to pass the VAT on in the nightly rate or keep the final price the same for the guest, absorbing in that case a possible hit to their net income.

On top of that, certain costs linked to the rental activity, such as management services, booking portals, maintenance, refurbishments, repairs, some utilities and professional advice, may let you deduct a good part of the VAT you pay, provided the legal requirements are met.

That’s why the real cost won’t necessarily be 10% of your income. Good tax advice that helps you cut costs significantly, together with a pricing strategy adapted to the market, can help protect each property’s returns.

What you need to do as a holiday let owner in Spain

Depending on your situation, these are the obligations you’ll need to review:

• Tax registration. Register the activity, or update your details, with the Agencia Tributaria (the Spanish Tax Agency), including the obligations that apply to you.
• Invoicing. Issue invoices to your guests that include VAT where it applies.
• Quarterly Modelo 303. File your VAT return every quarter using the Agencia Tributaria’s Modelo 303.
• Expense records. Keep every invoice that supports your deductions. No invoice, no deductible VAT.

Non-resident owners: what you can’t overlook

If you’re a non-resident owner, the new holiday rental VAT affects you in exactly the same way as a Spanish tax resident. Living in the UK, Germany or France doesn’t exempt you from VAT on renting out a property located in Spain. The obligation arises where the property is, not where you live.

And don’t mix the taxes up: VAT is not the same as Non-Resident Income Tax (IRNR), which you were already paying on your rental income. They are two separate obligations, each with its own deadlines. The safest approach is to work with a good tax adviser in Spain who handles all your tax obligations.

How Banús Rentals helps owners

At Banús Rentals we’re working with our trusted tax adviser to offer a coordinated service that makes it easier to adapt to the new rules, especially for owners who live outside Spain.

Our aim is to keep the paperwork as simple as possible and give you professional advice so you can meet your new tax obligations.

Our support will include:

• Organising your booking information.
• Issuing invoices to guests.
• Reviewing your pricing and revenue strategy.
• Putting you in touch with a trusted tax adviser if you don’t already have a lawyer or local adviser who can handle all of this on your behalf. Depending on the service you take out and your needs, the adviser can help you register with the Spanish Tax Agency, review your deductible expenses, and prepare and file your quarterly VAT returns.

This way we can work together to keep your documentation in order and handle the new obligations more efficiently. Once you’ve engaged a tax adviser, the only thing our owners need to do is send them, every quarter, the income invoices that Banús Rentals provides and the invoices for rental costs such as management fees, utilities, maintenance, refurbishments and any other investment in the property.

Let’s talk about your property

If you own a holiday rental in Marbella or on the Costa del Sol and want to know how the new VAT on holiday lets in Spain affects you, tell us about your situation. Our team will review it and tell you what changes for you and how much you could deduct, with no obligation.

Request a review of your property

Frequently asked questions

What is the VAT rate on holiday rentals in Spain?

From 1 December 2026, short-term holiday rentals (under 30 days) are subject to 10% VAT in the cases that were previously exempt. Before that, renting out a home without hotel services was usually exempt from VAT.

When is a holiday rental in Spain exempt from VAT?

The exemption is now very narrow. The clearest case that stays outside is renting out the home that is your main residence. It’s worth confirming each situation, because the exceptions depend on the type of rental and the services you provide.

Do Airbnb rentals in Spain include VAT?

The channel makes no difference. Whether you rent your property through Airbnb, Booking.com, a local manager or directly, what decides the VAT is the type of rental, not the platform. If your holiday rental is subject to VAT, the price will include the 10% wherever it’s booked.

Is a holiday let the same as a tourist rental in Spain?

In practice the terms are used interchangeably: short stays for tourism. For VAT purposes the label doesn’t matter. What counts is the length of the stay (short) and whether you provide hotel-type services.

Is the VAT 10% or 21%?

For short-term furnished holiday rentals, the rate is 10%, the same reduced VAT rate that applies to hotel accommodation. Some arrangements can be taxed at other rates depending on the services provided, so it’s worth reviewing your own case before taking anything for granted.