The short answer: From 1 December 2026, furnished homes let in Spain for 30 nights or less may lose their VAT exemption and carry 10% VAT. The rule comes from Royal Decree-law 29/2026, in force since 8 October, but it only stands if Parliament ratifies it. The vote is expected on 12 November.
If you have already been paid for stays in December, this matters now. The decree does not say how bookings paid before 1 December are treated, so part of that money could end up going to VAT.
Until now, most holiday lets in Spain have been outside VAT. Owners declared the rental income, but they never charged VAT, issued VAT invoices or filed VAT returns. That may be about to change for thousands of owners, including many who live abroad and rent out their Spanish home a few weeks a year. Here is what the decree says, who it covers and what is still undecided.
What exactly changes on 1 December?
Article 7 of Royal Decree-law 29/2026 amends the VAT law. It removes the exemption for the rental of furnished apartments or homes when two conditions are met at the same time: the stay is no longer than 30 nights, and the home is not the owner's main residence. According to the decree's preamble, the 30 nights are counted per guest.
Those rentals move to the reduced VAT rate of 10%. The Spanish tax agency confirms the change takes effect on 1 December 2026.
Rentals where the owner provides hotel-type services were already outside the exemption. The decree keeps that rule and adds the short-stay case next to it.
Which rentals are affected?
The table compares each type of rental today with its treatment from 1 December, if the decree is ratified.
| Type of rental | VAT today | VAT from 1 December 2026 |
|---|---|---|
| Furnished home, 30 nights or less, not the owner's main residence | Exempt | 10% |
| Furnished home, more than 30 nights, no hotel-type services | Exempt | Exempt |
| Owner's main residence let for a short stay | Exempt | Exempt |
| Furnished home with hotel-type services | 10% | 10% |
In practice, most homes listed on holiday platforms for weekly or fortnightly stays fall into the first row.
Is it already law?
Yes and no. The decree was published on 7 October and has been in force since 8 October. But a Royal Decree-law has to be ratified by Parliament within 30 days, under article 86 of the Spanish Constitution. With Parliament dissolved ahead of the general election on 29 November, that vote falls to its standing committee and is expected on 12 November.
The outcome is not a formality. An earlier decree with the same measure, Royal Decree-law 26/2026, was not ratified and was repealed on 2 October. If this one fails too, the VAT change falls with it. And even if it passes, a new government could change it after the election.
Does it apply if you live outside Spain?
Yes. VAT on a rental depends on where the property is, not on where the owner lives. A non-resident who lets a holiday home in Spain for short stays would be covered in the same way as a resident owner.
The VAT would come on top of what non-residents already file. The yearly non-resident income tax on rental income stays as it is.
What would owners have to do?
If the decree is ratified, an owner letting short stays from 1 December would become a VAT payer for that activity. Under the general rules of the VAT law, that means things most owners have never had to do:
- Registering for VAT with the Spanish tax agency before the first taxed stay.
- Charging 10% VAT on each stay of 30 nights or less.
- Issuing an invoice for each stay.
- Filing a VAT return every quarter.
There is a counterpart. Once registered, owners can deduct the VAT they pay on costs linked to the rental, such as cleaning, repairs, furniture or management fees, as long as those costs are properly invoiced.
The VAT is a separate tax from the tourist licence or registration your region or town requires. If your home is not yet registered, the holiday rental registration guide and the tourist rental licence guide explain what is needed.
What about bookings already paid for December?
The decree does not include a specific rule for bookings made or paid before 1 December for stays after that date. Until the text is clarified, treat those bookings as an open question and review them case by case, especially if guests have already paid a deposit or the full price.
What should you check now?
Nothing has to be filed yet, but a few checks now save time if the decree passes:
- List your bookings for stays from 1 December, how long each one is and how much has already been paid.
- Check how your booking platform shows taxes in the price.
- Keep the invoices for the costs of your rental in one place.
- Make sure your tourist registration or licence is in order.
- Follow the result of the vote on 12 November.
Know where you stand before 12 November
If you let a home in Spain for short stays, it is worth knowing now what the change would mean for your bookings and your costs. Book a free consultation and go into December with your case clear, whatever the vote decides.
Frequently asked questions
Sources: BOE · Royal Decree-law 29/2026, Agencia Tributaria · VAT changes 2026, BOE · Spanish Constitution, art. 86, BOE · VAT Law 37/1992. Last reviewed: 27 October 2026. This guide is general information, not advice for your specific case. This article will be updated after the vote.