From 1 December 2026, holiday lets in Spain will be charged 10% VAT on stays of up to 30 nights. And since 1 October 2026, tourist rentals can no longer exceed 31 days: anything longer becomes a seasonal let that needs a justified reason in writing.
Both changes come from Royal Decree-law 26/2026, published in Spain’s Official State Gazette (BOE) on 30 September. If you own a holiday home on the Costa Blanca and let it to tourists, here is what changes for you.
What has been approved and when it applies
The Spanish Government’s Royal Decree-law 26/2026 of 29 September came into force on 1 October 2026. Not everything applies at once:
- 10% VAT on holiday lets of up to 30 nights: from 1 December 2026.
- 31-day limit for tourist rentals: from 1 October 2026.
One caveat. A Royal Decree-law must be approved (“convalidated”) by the Spanish Parliament within 30 days. The vote is scheduled for Friday 2 October. If Parliament rejects it, the decree lapses, as happened with a similar decree in March 2026. We will update this article after the vote.
10% VAT on holiday lets in Spain
Until now, letting a furnished property to holidaymakers without hotel-type services was exempt from Spanish VAT (IVA). VAT only applied if the owner provided regular cleaning, fresh linen, breakfast or similar services. We explain the current rules in how holiday home rental is taxed in Spain.
The decree amends the Spanish VAT Act and removes the exemption when both conditions are met:
- the stay is 30 nights or less, and
- the property is not the owner’s own main home.
These lets are taxed at the reduced rate of 10%, the same rate as hotels.
Situation | 10% VAT? |
|---|---|
Holiday let of 30 nights or less, no services | Yes, from 1 Dec 2026 |
Any stay with hotel-type services | Yes (as before) |
Stay of more than 30 nights, no services | No, still exempt |
Room let in the owner’s own home | No |
Watch the wording: the VAT rule counts nights (30), while the tourist rental rule counts days (31).
What owners need to do before 1 December
- Register for VAT with the Spanish Tax Agency (form 036). This applies to non-resident owners too. Depending on your country of residence, you may also need to appoint a tax representative in Spain.
- Charge 10% VAT on each affected booking and issue an invoice.
- File the quarterly VAT return (form 303) and the annual summary (form 390).
- Review your prices on Booking, Airbnb and your own website. If you don’t adjust them, the 10% comes out of your margin.
The upside: once you charge VAT, you can generally reclaim the VAT you pay on costs linked to the property, such as renovations, furniture, utilities or your management company.
This VAT is separate from your income tax. Non-resident owners still declare their rental income on form 210, as explained in our guide on how to declare Airbnb income in Spain as a non-resident.
The 31-day rule: tourist let or seasonal let?
The decree amends Spain’s Urban Leases Act (LAU) and draws a clear line based on the length of the stay:
Length of stay | What it is | What it requires |
|---|---|---|
Up to 31 days | Tourist let | Registration in the Valencian Tourism Register (VT number) and compliance with tourism rules |
Over 31 days and up to 12 months | Seasonal let | Written contract stating a genuine, provable reason for the temporary stay |
Over 12 months without a reason, or more than two back-to-back contracts with the same tenant | Main residence let | Full tenant protection under Spanish law: extensions, rent caps, etc. |
The reason for a seasonal let
Calling a contract “seasonal” is no longer enough. The reason must be stated in the contract, it must be genuine, and the owner has to prove it. If it doesn’t hold up, the contract is treated as a main residence lease from day one. These rules apply to seasonal contracts signed from 1 October 2026.
Other changes for seasonal lets
- Extra deposit: maximum one month’s rent on top of the legal deposit.
- Early exit: the tenant can leave with 10 days’ notice, with no penalty.
- Repairs: if the tenant reports damage affecting habitability, the owner has 5 days to respond.
What about the tourist licence?
Lets of up to one month need a VT number from the Valencian Tourism Register, which also requires a favourable urban-planning report from the town hall. With the new 31-day limit, the argument “I don’t need a licence because I only accept stays of 15 nights or more” no longer works.
Booking, Airbnb and property tax: more control, higher costs
Platforms. The decree introduces fines of up to €1 million or 2% of turnover for short-term rental platforms that breach the rules of the EU’s Single Digital Window for rentals. In practice, Booking and Airbnb will be much stricter: listings without valid registration numbers will be removed.
Bear in mind that the Spanish Tax Agency already receives data on every owner and their rental income directly from these platforms.
Property tax (IBI). Town halls in areas officially declared “stressed housing markets” can add a surcharge of up to 50% of the IBI on tourist properties: up to 100% for owners of two or more, and 150% for owners of four or more. It is not automatic: each town hall must approve it.
Practical case: a foreign owner letting to holidaymakers
Take a typical Costa Blanca case. A British owner living in the UK has a sea-front apartment in Torrevieja. He lets it on Booking, Airbnb and his own website, mainly to Scandinavian and German guests who come for the winter.
Three-week booking (21 nights). Tourist let. He needs a VT number and, from 1 December, must charge 10% VAT.
One-month booking. Up to 30 nights: tourist let with VAT. 31 nights or more: no VAT, but it becomes a seasonal let with a written reason.
Two-month booking. Seasonal let, no VAT. Here a foreign guest works in the owner’s favour: someone whose home is in Oslo or Munich and comes on holiday is not making the apartment their main residence. To protect yourself:
- State the reason in the contract: holiday stay by a non-resident whose permanent home is in [country].
- Keep a copy of the guest’s passport or ID, proof of their home address abroad and their return ticket.
- Set fixed check-in and check-out dates, with no automatic renewal.
- Don’t sign more than two consecutive contracts with the same guest.
Good news on e-invoicing. Spain’s new VeriFactu invoicing system does not apply to non-resident owners without a permanent establishment in Spain, even if they now have to issue VAT invoices.
Frequently asked questions
When does the 10% VAT on holiday lets in Spain start? On 1 December 2026, for stays of 30 nights or less in properties that are not the owner’s main home.
Do non-resident owners have to charge VAT? Yes. Non-resident owners must register for VAT in Spain and charge 10% on affected bookings, just like residents.
Does a two-month stay include VAT? No, as long as no hotel-type services are provided. But it is a seasonal let and needs a written, provable reason.
Is a foreigner’s holiday a valid reason for a seasonal let? It is the clearest case: the guest’s permanent home is in another country. What matters is that it is stated in the contract and can be proven.
Is the decree already in force? Yes, since 1 October 2026, pending approval by the Spanish Parliament. The 10% VAT applies from 1 December 2026.
Need help with your holiday let in Spain?
At Asesoría Orihuela Costa we are economists and tax advisors working in English, French and Spanish with non-resident owners on the Costa Blanca. We handle your VAT registration, quarterly VAT returns, form 210 and your seasonal contracts. Book an appointment with our team.
Sources: BOE – Royal Decree-law 26/2026 · Civio · Forbes España
Updated 1 October 2026. Pending approval of Royal Decree-law 26/2026 by the Spanish Parliament.