Spain is considering a proposal to impose a 21% value-added tax (VAT) on short-term tourist rentals, more than double the 10% VAT currently applied to hotel stays.
The measure is part of a broader effort by the Spanish government to address rising concerns over housing affordability. Housing Minister Isabel Rodriguez said on 23 May, “Homes are for living in (...) the measures seek to guarantee the right to rental housing for families.”
According to a recent report by the Bank of Spain, the country has a shortfall of 450,000 homes. The report also noted that in the Canary and Balearic Islands, half of the housing stock is used for tourist accommodation or is owned by non-residents.
The proposed VAT adjustment aims to make short-term rentals less financially attractive for landlords, in a bid to encourage long-term leasing and ease pressure on the housing market.
In addition to the national-level proposals, local and regional governments are taking further action. Authorities in Malaga and Madrid are capping the issuance of new tourist rental licences. Meanwhile, Barcelona plans to ban short-term tourist rentals entirely by 2028.
Tourism remains a key driver of Spain’s economy, but officials say the new measures are designed to strike a balance between economic interests and access to affordable housing for residents.