Short answer (3 November 2026): today, the letting of a tourist home without hotel-type services is exempt from VAT (IVA): the owner neither charges nor declares it. If hotel services are provided, it is taxed at 10%. But Royal Decree-Law 29/2026 provides that, from 1 December 2026, all lettings of furnished housing of up to 30 nights with the same guest will pay 10% VAT, unless it is the owner’s main residence. That decree is pending ratification (convalidación) by Congress: if it is not ratified, it will not apply. In the Canary Islands there is no VAT, but IGIC.
We will update this article as soon as the ratification vote takes place. General information based on the Spanish Tax Agency and the BOE (Spain’s official gazette); for your specific case, consult your adviser.
The current rule: exempt unless hotel services are provided
The Spanish Tax Agency sums it up like this: the letting of furnished flats or homes for tourist purposes is exempt from VAT, unless the owner provides services typical of the hotel industry. In that case it is taxed at 10%.
| Hotel services (the letting pays 10% VAT) | Not hotel services (stays exempt) |
|---|---|
| Permanent reception and guest assistance in a dedicated space | Cleaning on arrival and departure of each stay |
| Periodic cleaning during the stay | Changing bed linen and towels between stays |
| Periodic change of bed and bath linen during the stay | Cleaning of the building’s common areas |
| Laundry, luggage storage, catering | Repairs and technical assistance |
While the letting is exempt, the owner cannot recover the VAT paid to suppliers (for example, on the management company’s invoice), but that VAT counts as a deductible expense in the IRPF (Spanish personal income tax).
What changes if Royal Decree-Law 29/2026 is ratified
Royal Decree-Law 29/2026 of 6 October (published in the BOE on 7 October) amends the VAT Law with effect from 1 December 2026:
- Lettings of furnished housing of 30 nights or fewer with the same tenant are no longer exempt, whether or not hotel services are provided.
- They are taxed at the reduced rate of 10%.
- The owner’s main residence is excepted (for example, if you let your home while you are on holiday).
- There is no limit by municipality or number of inhabitants.
Status: a first decree containing this measure (Royal Decree-Law 26/2026) was repealed by Congress on 2 October. The Government approved it again as Royal Decree-Law 29/2026, which is in force but needs ratification by Congress’s Standing Committee (Diputación Permanente), expected in the first half of November. If it is not ratified, it lapses and tourist lettings remain exempt.
What the owner would have to do from 1 December
- Charge 10% VAT on every stay of up to 30 nights and issue an invoice.
- File the VAT return quarterly (Modelo 303) and the annual summary (Modelo 390).
- Recover the VAT on their expenses: the management company’s invoice, cleaning, repairs…
- In the IRPF, expenses will be counted without VAT, because that VAT is recovered.
- Review prices: if they are not raised, the 10% comes out of the owner’s margin.
- The tourist tax also forms part of the VAT base when the stay is subject to VAT. In Vigo, the €1.46 per person per night would become about €1.61.
Stays of more than 30 nights
Lettings of more than 30 nights with the same tenant, without hotel services, would remain exempt from VAT. This is one of the reasons why mid-term stays (relocated professionals, students) are gaining interest in the low-season months.
Canary Islands: IGIC instead of VAT
VAT does not apply in the Canary Islands. The Canary Islands Tax Agency considers holiday housing to be subject to IGIC (the Canary Islands general indirect tax) at the general rate of 7%, whether or not hotel services are provided. Since 1 July 2026, owners established in the Canary Islands whose turnover does not exceed €50,000 a year can claim the IGIC exemption threshold (franquicia). Owners who live outside the islands cannot claim it.
Frequently asked questions
Does Airbnb charge and pay the VAT for me?
No. The platform does not declare the VAT on your letting. If your letting becomes subject to VAT, you (or whoever operates the property) are the person obliged to charge and declare it.
Does the change affect bookings already made?
If the decree is ratified, VAT will apply to stays from 1 December. What you have received in advance before that date became chargeable when the letting was still exempt, so in principle that part carries no VAT; what you receive from 1 December does. If you are paid through a platform, the date of receipt may be when the guest pays the platform: check this with your adviser.
Do I have to register with the tax authority?
If you start charging VAT, yes, you will have to register in the census of businesses as a lessor, using Modelo 036 (Modelo 037 was abolished in February 2025). This does not mean you stop being taxed in the IRPF as income from real estate capital, provided you do not provide hotel services.
