Spain ends VAT exemption for thousands of holiday rentals from December 1
Thousands of holiday rental owners in Spain face a major tax change from December 1 as short stays that have […]
From December 1, Spain will impose a 10% VAT charge on most short-term holiday rentals of 30 nights or fewer, ending an exemption that had previously applied. This means owners could see an additional €100 on a €1,000 stay or €200 on a €2,000 booking if they pass the tax onto guests. The change affects furnished properties rented to the same person for 30 consecutive nights or less, differing from the current VAT exemption for purely basic accommodations.
Owners can either pass the tax onto guests or absorb it themselves, with the latter potentially reducing their profit. The rule does not apply to the owner's habitual residence, and owners must consider factors like property type, furnishings, and rental duration. Additionally, there's a separate IBI surcharge in some areas that could further impact short-term rental profitability.
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