Spain will introduce a 10 per cent value-added tax (VAT) on tourist rentals from December 1, 2026, as authorities intensify efforts to address housing affordability concerns amid record tourist arrivals.
Under a housing decree dated October 8, tourist accommodation previously exempt from VAT will become subject to the tax, according to reports.
The decree also allows local authorities in designated housing pressure zones to increase property taxes on homes used for tourist rentals.
The annual property tax, known as Impuesto sobre Bienes Inmuebles (IBI), can be increased by up to 50 per cent for properties rented to tourists.
According to local media reports, the surcharge could rise to 100 per cent for owners with two or more tourist rental properties and 150 per cent for those with at least four.
The measures come as concerns over housing affordability intensify across Spain, where tourism remains a major pillar of the economy.
The country’s housing crisis has been linked to growing tourism pressure, the expansion of short-term rentals and an inadequate supply of homes. Tourist accommodation accounts for about 10 per cent of Spain’s rental market, according to the report.
Spain has been considering measures to restrict short-term rentals following a post-pandemic surge in visitors and protests by residents who blame overtourism for rising rents and house prices.
The country received 12.3 million foreign tourists in August, a 9.2 per cent increase compared with the same month in the previous year and the highest total for August on record.
Tourist arrivals also rose by 2.8 per cent in June to 9.74 million and by 4.6 per cent in July to 11.53 million.
In the first eight months of 2026, Spain welcomed 70.4 million tourists, putting it on course to receive 100 million visitors for the year, following a record 97 million in 2025.
