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Short-term rentals remain firmly in the spotlight of Spain’s tax and planning regulations.
If you own or manage a holiday apartment, 2025 brings key changes, especially regarding VAT on short-term tourist rentals and tighter administrative controls.
This guide explains how VAT applies to this type of accommodation, when you must charge it, and which tax obligations you must meet.
At Delaguía y Luzón, we help you tackle these issues so you can comply with the law without hassle and avoid penalties.
When is VAT applied to tourist apartments?
The Spanish VAT Act indicates that you only have to charge VAT on short-term tourist rentals if you provide additional, hotel-style services such as periodic cleaning during the stay, changing bed linen and towels, a reception desk, breakfast, and so on.
When the rental is limited to handing over the keys and cleaning after checkout, it is exempt from VAT.
This rule applies both to tourist accommodation VAT in general and specifically to VAT on short-term tourist rentals.
Reviewing exactly which services you offer is therefore essential to know whether you have to add VAT or not.
Did You Know?
- Spain plans to tax non-EU buyers on property purchases, unless it’s their main residence, and raise taxes on empty homes.
VAT on short-term tourist rentals
Your VAT obligations depend directly on the bundle of services you provide to guests.
Hotel-type services (10 % VAT)
If you supply two or more of the following hotel-industry services, your rental is subject to the reduced 10 % VAT rate on tourist flats, just like hotels or rural guesthouses with extras:
- Round-the-clock reception and guest assistance
- Regular cleaning during the stay
- Regular change of bed and bath linen during the stay
- Laundry service
- Luggage storage
- Newspapers
- Reservation services
- Food and catering services
Services not directly linked to lodging (21 % VAT)
Extras not directly connected to accommodation, such as parking, bike hire, spa access, excursions, are taxed at the general 21 % rate and must be itemised separately on the invoice.
Services not classed as hotel services (no VAT)
- Cleaning and linen change are only available at check-in and checkout
- Cleaning of common areas in the building or complex
- Occasional technical assistance and maintenance repairs
When is holiday rental VAT-exempt?
VAT on tourist accommodations in Spain does not apply to a simple lease if you don’t provide additional services.
In this case, rent is then exempt from VAT, although you must still declare the income in your income tax return as real estate capital gains.
You won’t, however, be able to deduct VAT on property-related expenses.
Mixed use of the property and VAT pro rata
If you alternate periods with and without extra services, you’ll need to work out a VAT pro-rata.
This means that you deduct input VAT only in proportion to the income that is subject to VAT over the year.
Getting this calculation right is vital to maximise deductions and avoid trouble with the tax authorities.
Tax and administrative obligations for owners of tourist apartments
- Register with the tax office using form 036 or 037 under the IAE heading 861.1.
- Issue full or simplified invoices as required.
- File the quarterly VAT form 303 and the annual summary form 390.
- Keep accounting books and preserve tax records for at least four years.
- Reconcile income with the figures that digital platforms report to the tax office via Form 238.
New in 2028: mandatory VAT on short stays
From 1 July 2028, EU rules will make VAT compulsory on tourist apartment rentals for all stays of less than 30 nights, regardless of services provided.
This will raise tax and administrative requirements for Spain’s tourist-accommodation sector.
Mandatory registration and fines from 2025
Starting in July 2025, every owner of a holiday flat will need a registration code to advertise on digital platforms.
Without this code, you risk financial penalties and removal of your listings.
How can Delaguía y Luzón help?
At Delaguía y Luzón, we specialise in tax and legal advice for tourist accommodation.
We provide:
- Personalised analysis of VAT on tourist apartments.
- Full management of tax registration, invoicing, and form filing.
- Review and reconciliation of income and expenses reported to the tax office.
- Guidance on the European regulatory changes coming in 2028.
- Legal representation during audits or tax proceedings.
Don’t let tax complexity undermine the profitability of your tourist apartment.
Contact Delaguía y Luzón for safe, efficient management of VAT on short-term tourist rentals that keeps you fully compliant with recent requirements.
Questions and answers
Do I always need to charge VAT on short-term tourist rentals in Spain?
VAT on short-term tourist rentals only applies if you offer hotel-like services such as regular cleaning during the stay, linen changes, or reception support. If you simply hand over the keys and clean after checkout, the rental is usually VAT-exempt.
What hotel-style services trigger the 10% VAT rate?
If you provide two or more services typical of the hospitality industry, like daily cleaning, breakfast, 24/7 reception, or linen changes, your rental is taxed at the reduced 10% rate, the same as hotels. These services must be identified and invoiced accordingly.
Which services are subject to 21% VAT?
Services not directly tied to accommodation, such as spa access, excursions, or bike rentals, must be charged at the general 21% VAT rate. These must be listed separately on your invoices to comply with Spain’s tax rules.
What if I rent my tourist apartment without offering any extra services?
In this case, VAT on short-term tourist rentals doesn’t apply. However, the income must still be declared as a capital gain in your income tax return. You also won’t be allowed to deduct VAT on any related property expenses.
How does VAT work if I use the apartment for both exempt and taxable rentals?
You’ll need to calculate a VAT pro rata based on the proportion of income subject to VAT throughout the year. A qualified property lawyer or tax solicitor can help you get this calculation right to avoid compliance issues and optimise deductions.
What are my tax and administrative obligations as a holiday rental owner in Spain?
You must register with the tax office (form 036/037), issue proper invoices, file quarterly VAT returns (form 303) and the annual summary (form 390), and keep tax records for four years. You also need to reconcile income with digital platform reports (Form 238).
How can Delaguía y Luzón assist with VAT on short-term tourist rentals?
We offer expert tax and legal support, including VAT assessments, form filing, income reconciliation, and regulatory guidance. Whether you’re facing a tax audit or simply need help staying compliant, our tax solicitors provide complete support tailored to your property.
