VAT rules for tourist and short-term rentals in Spain
1. Legal framework
The rental of real estate in Spain is regulated by Law 37/1992 (LIVA) and its implementing regulations. Residential rentals are generally exempt from VAT. Rentals with hotel-type services are subject to VAT, normally at 10%. Updated September 2026.
2.1. Rental with hotel-type services — 10% VAT
If the overnight stay includes hotel-industry services such as regular cleaning during the stay, change of bed linen and towels during the stay, reception, or similar hotel-like care, a reduced VAT rate of 10% applies.
2.2. Renting without hotel services
Short-term or long-term rentals without those hotel-type services are generally exempt from VAT. Entry/exit cleaning and providing linen at the start/end of the stay are, in AEAT practice, usually not enough on their own to make the stay a hotel-type service.
3. Practical examples
- Final cleaning only / linen at handover: often still VAT-exempt (confirm with your advisor). Do not treat tourist use alone as 10%.
- Weekly cleaning and change of sheets during the stay: typically 10% VAT.
- Separate extra services (breakfast, excursions): may be taxed at 21% as ancillary services. Do not treat 21% as the standard VAT rate for the tourist stay itself.
4. Further information
- Spanish Tax Agency (sede): sede.agenciatributaria.gob.es
- Law 37/1992 and implementing regulations; binding rulings of the Directorate General for Taxation.
Summary
- Hotel-type services during the stay: 10% VAT.
- Without those services: generally exempt.
- Separate extras: may be 21%.
- Company / sublease structures: VAT treatment is fact-specific; take advice. Do not assume 21% always applies.
Always consult a tax advisor.