On 29 September the Government approved two royal decree-laws on housing. The first, Royal Decree-Law 26/2026, included a measure that had been in the public debate for weeks: 10% VAT on short-term rentals from 1 December 2026. Three days later, on 2 October, Congress decided not to ratify either of the two texts.

In short:

As of 5 October 2026, there is no approved 10% VAT on tourist rentals. Both decrees have ceased to be in force and the previous tax regime continues to apply. The measure may return by another route, but today there is no text and no date.

What did the decree include for tourist rentals?

According to the text published in the Official State Gazette (BOE) and as reported by the specialist press, Royal Decree-Law 26/2026 affected tourist accommodation in three ways:

  • 10% VAT from 1 December 2026 on lettings of furnished homes of up to 30 nights where the property was not the landlord's main residence, and also where hotel-type services were provided.
  • IBI surcharge: according to published reports, municipalities could have applied a surcharge of up to 150% on the IBI (local property tax) for certain homes, including tourist ones.
  • Seasonal and room rentals: a seasonal contract had to respond to a real, provable reason, with a general limit of twelve months, and chaining more than two temporary contracts between the same parties could turn it into a main-residence tenancy.

What happened on 2 October?

A royal decree-law takes effect when published, but it needs ratification by Congress: if it is not ratified, it stops applying. That is exactly what has happened. The first decree was rejected with votes against from PP, Vox, Junts and UPN. The second, focused on the automatic renewal of main-residence leases, was rejected by 184 votes against to 166 in favour, with PNV and Coalición Canaria also voting against.

Because the 10% VAT was not due to apply until 1 December, there are no transactions already subject to the new rate, and no change is needed to current invoicing.

How are tourist rentals taxed today?

As a general rule, residential lettings are exempt from VAT in Spain. However, when the stay comes with services typical of the hotel industry (for example catering, cleaning or laundry during the stay), it is treated as accommodation and taxed at 10%. In other words, part of the tourist rental activity may already be subject to VAT today, regardless of what the decrees said.

This is a general description: the specific classification depends on the services provided, the type of contract and who operates the property, and should be confirmed by a tax adviser.

What should an owner do now?

  • Do not add 10% to your prices or change your invoicing because of headlines: there is no rule in force that requires it.
  • Review your current tax treatment. The real risk today lies in misclassifying the services provided, not in a decree that has lapsed.
  • Work out your margin for a possible future VAT: know whether the business could absorb it or whether it would have to be passed on to the guest.
  • Keep up your other obligations: licence, Single Registry, and the statutes and resolutions of the homeowners' association. The fall of the decrees changes none of this.
  • Watch municipal regulations, which remain the route through which most practical changes affect tourist homes.

Could the measure come back?

Yes, by other routes: a new decree, a bill, or a different parliamentary negotiation. The press also reports that the Government's defeat opens the door to a possible early election, which adds uncertainty about the timetable. Until a text is approved and published, there is no new obligation.

Keep monitoring: we will publish an update if the Government presents a new text. This article is for information only and does not replace tax or legal advice on your specific case.

Frequently asked questions

Is there 10% VAT on tourist rentals from 1 December 2026?

No. Royal Decree-Law 26/2026, which provided for it, was not ratified by Congress on 2 October 2026 and ceased to be in force, so the obligation does not exist.

Do I need to change my invoicing or add extra VAT?

Not because of this decree: no rule in force requires it. You should, however, check whether the services you provide (cleaning, catering or other hotel-type services) already mean 10% VAT applies.

Are tourist rentals subject to VAT today?

It depends on the activity. Residential lettings are generally exempt, but where hotel-industry services are provided the stay is treated as accommodation and taxed at 10%. A tax adviser should confirm this.

Could the 10% VAT on tourist rentals come back?

Yes, through a new decree, a bill or another parliamentary negotiation. Until a text is approved and published in the BOE, there is no new obligation.

Sources

This article is based on the following public sources (in Spanish):