Holiday Let VAT in Spain Stays at 10%: What It Means in 2026

VAT on Spanish holiday lets has not gone up to 21%. The proposal was withdrawn from the Council of Ministers on 27 July 2026 for lack of parliamentary support, so the rate is still 10%, and a simple private holiday let without hotel-type services generally pays no VAT at all. Your plans for a Murcia resort home can carry on as before.

If the June and July headlines made you wonder about your letting plans, this is what actually happened, with the dates and the law behind it.

Did VAT on holiday lets in Spain go up to 21%?

No. The government's housing package included a proposal to move tourist rentals from the reduced 10% IVA rate to the general 21% rate. It hasn't happened.

The timeline in brief:

So, as of September 2026, the rate hasn't changed. The proposal lacked support from the parties the government would need, reportedly including Junts, Podemos and the PNV.

Does my Murcia holiday let pay VAT at all?

For most private owners, usually not. In Spain, a straightforward holiday rental, where you provide the home and guests look after themselves, is generally exempt from VAT. The 10% rate applies where the let comes with hotel-type services, such as daily cleaning during the stay, fresh linen changes or breakfast.

That's why most resort owners who let through a management company or the big booking platforms haven't been charging VAT in the first place. Your tax adviser will confirm how your own set-up is treated, and it's a quick conversation.

What owners do pay is income tax on their rental income in Spain, which is a separate, well-established system. We cover that in our guides on buying and owning in Murcia.

Could the 21% proposal come back?

It's been postponed rather than formally abandoned, so it could return to the agenda. It has now failed to gain enough support twice in four months, in April and again in July, which says a lot about the parliamentary arithmetic.

The sensible approach is simply to keep an eye on it and check the date on anything you read.

What is the EU change coming in 2028?

This change is already law at EU level, with fixed dates and years of notice.

Council Directive (EU) 2025/516, adopted on 11 March 2025 and published in the Official Journal on 25 March 2025, is part of the EU's "VAT in the Digital Age" (ViDA) package. It introduces a "deemed supplier" rule for short-term accommodation of up to 30 consecutive nights: where the host doesn't provide a VAT registration number, the booking platform becomes responsible for collecting and paying the VAT.

The dates:

• 1 July 2028: Member States may start applying the platform rule.
• 1 January 2030: It becomes mandatory across the EU.

Spain still has to transpose the directive into Spanish law, and how it interacts with the existing exemption for simple lets will depend on that Spanish legislation. For owners, the practical effect is that platforms, not you, would handle the collection. It's a timetable to be aware of over a longer hold, and it comes with years of notice.

How should I factor this into buying a resort home?

Calmly. The current position is stable, the domestic proposal hasn't passed, and the EU timeline is years away and well signposted.

When a buyer tells me letting is part of their plan, we look at the whole picture together: how often they want to use the home themselves, which months they'd like to let, and an itemised cost breakdown for the homes they're considering, before they reserve anything. Golf high season in Murcia runs through autumn, winter and spring. The GNK Golf 2026 rate card lists high season at La Torre as February to May and September to November, and at El Valle as March to May and September to October. That gives owners a long window for golf visitors, plus summer families heading to the beaches of the Mar Menor.

A few simple habits help:

• Remember that many articles from June and July 2026 were written before the package was pulled.
• Keep the VAT story separate from the rental registry story. The national rental registry (NRUA) was annulled by Spain's Supreme Court on 19 May 2026, which was a separate and welcome simplification for owners.
• Ask a Spanish tax adviser to confirm how your letting set-up is treated. We can introduce you to independent, English-speaking lawyers and advisers, and you're always free to choose your own.

FAQ

Did Spain raise VAT on holiday lets to 21%?

No. The proposal was pulled from the Council of Ministers agenda on 27 July 2026, the day before it was due to be approved, for lack of parliamentary support. An earlier decree-law was rejected by Congress on 28 April 2026, and the rate remains 10%.

Do private holiday lets in Spain pay VAT?

Generally not. A simple holiday rental without hotel-type services (such as daily cleaning, linen changes or meals) is usually exempt from VAT; the 10% rate applies where those services are included.

What is the VAT rate on holiday rentals in Spain in 2026?

10%, where VAT applies. The proposal to move short-term lets to the general 21% rate has not been enacted.

When will EU rules change VAT on short-term rentals?

Under Council Directive (EU) 2025/516, platforms can be made responsible for collecting VAT on short stays from 1 July 2028, becoming mandatory EU-wide on 1 January 2030, once Spain transposes it into national law.

Is this connected to the cancelled tourist rental registry?

No. The national rental registry (NRUA) was annulled by Spain's Supreme Court on 19 May 2026; the VAT increase was a separate government proposal that was pulled in July.

If you'd like to see the resorts for yourself, I'd love to show you round, and we can talk through your letting plans while you're here. Message me on WhatsApp on +44 7424 864 684 or send an enquiry and I'll get straight back to you.

This article is general information, not legal or financial advice. Confirm your own position with a qualified Spanish lawyer or tax adviser before you act.

About the author — Lee Doherty is the founder of MedSol Real Estate. He spent two years researching the region before buying here himself, and now helps UK and international buyers find golf-resort homes across the Region of Murcia.