Update, 16 October 2026: Royal Decree-Law 29/2026 partly changes the answer in this guide. From 1 December 2026, renting a furnished home for 30 nights or fewer to the same guest is no longer exempt and pays 10% VAT even without hotel-type services, unless the property is the owner's main residence. The decree is in force, but it still has to be validated by the Standing Committee of Congress (Diputación Permanente): if it is not, the change will never apply and holiday lets will keep paying VAT only when they include hotel-type services.
If you rent out — or plan to rent out — a property for short stays on the Costa del Sol, sooner or later the question comes up: do I have to charge my guests VAT? The answer does not depend on which platform you use. Until 30 November 2026 it depends on something very specific: the services you provide during the stay. From 1 December the length of the stay matters too, because stays of up to 30 nights become taxable. A recent binding ruling from Spain's Directorate-General for Taxation (V0385-26) has put the services line back in the spotlight; it will still decide the outcome for longer lets, and it is worth understanding, because the tax consequences on either side of it are very different.
The general rule: letting a home is VAT-exempt
The starting point is Spain's VAT Act (article 20.One.23 of Law 37/1992): letting a dwelling as such is exempt from VAT and, until 30 November 2026, that includes holiday lets. Simply handing over the use of the property does not turn the owner into a hotelier. Until that date, the exemption is lost only when the rental stops being a straightforward letting and starts to resemble a hospitality service. From 1 December a second exception is added, for short stays, which we explain next.
What changes for holiday-let VAT from 1 December 2026?
Royal Decree-Law 29/2026, published in the Official State Gazette (BOE) on 7 October, amends the VAT Act (articles 20.One.23 and 91.One.2.2) with effect from 1 December 2026. From that date, renting a furnished flat or home is not exempt in two cases: when the owner provides hotel-industry services, as before, and, as a new rule, when a single guest's stay does not exceed 30 nights, even with no extra services at all. In both cases the reduced 10% rate applies. The only exception is the home where the landlord has their own main residence: if they let it for short stays without hotel-type services, it remains exempt.
In practice, anyone with a typical Costa del Sol holiday flat, the kind booked by the day or week on platforms such as Airbnb or Booking, will have to charge VAT on almost every stay, even if the flat is cleaned only at check-in and check-out. It makes no difference whether the owner lives in Spain or not: the property is in Spain, so the VAT is declared here. Lets of more than 30 nights without hotel-type services, such as seasonal lets of one or several months, remain exempt, as do long-term lets of a main home. The decree has no special rule for bookings made before 1 December, so if you have already sold stays from that date onwards, especially if you were paid in advance, check with your tax adviser how to invoice them.
The red line: hotel-industry services
The tax authority applies a clear test: if the owner provides guests with ongoing attention comparable to a hotel's, the rental becomes taxable, however long it lasts. From 1 December this test matters mainly for stays of more than 30 nights, because shorter ones are taxable even without any services. The two classic examples that break the exemption are:
- Periodic cleaning of the property while guests are staying in it.
- Regular changes of bed linen and towels during the stay, as part of the included service.
By contrast, there is a whole list of services that are NOT considered hotel-type services and therefore do not affect the exemption:
- Cleaning and fresh linen at each guest's check-in and check-out.
- Maintenance of the pool and garden, or plant watering.
- Phone support and technical assistance for repairs or incidents.
- Optional services guests book separately at their own price, such as breakfast or extra cleaning: the rental stays exempt and those extras are taxed independently.
What changes if you cross the line
If your rental includes hotel-type services, it is no longer exempt: you are now operating as accommodation, must charge VAT on every invoice (in general at the reduced rate applied to lodging), file the corresponding returns and run the activity as what it is — a hospitality business. That is not necessarily bad news — it allows you, for instance, to deduct input VAT on expenses and refurbishments — but it is a different regime, best chosen with the numbers in front of you and, in practice, with professional tax advice.
Be careful with intermediate structures too: handing your property to a management company to operate, or mixing seasonal lets, has its own tax treatment that this guide does not cover. Each formula deserves proper analysis before you sign.
Paperwork is your best defence
The border between exemption and taxation comes down to the details, and if the tax office ever checks, what matters is what you can prove. Keep contracts, listings, invoices and any document that makes clear which services are included in the price and which are optional extras with their own fee. That paper trail is the difference between a routine check and a back-tax bill with penalties.
Conclusion
Until 30 November 2026, a holiday rental as such carries no VAT, and what changes everything is the level of guest service. From 1 December, if the decree is validated, stays of up to 30 nights will pay 10% VAT with or without services, except in the owner's own main residence, so it is worth reviewing prices, invoicing and tax returns with your adviser now. For longer lets, before adding mid-stay cleaning or linen changes to make your property stand out, work out the tax impact: sometimes it pays off, sometimes it does not. At EVS PROPERTY GROUP we work every day with holiday-rental owners and investors in Málaga and on the Costa del Sol; if you want to position your property for this market with a sensible structure, let's talk.
Frequently asked questions
From when do holiday lets of up to 30 nights pay VAT?
From 1 December 2026, if Royal Decree-Law 29/2026 is validated. From that date, renting a furnished home for 30 nights or fewer to the same guest is taxed at 10%, even without hotel-type services. Until then, it is taxable only if the owner provides hotel-style services.
Which lets remain VAT-exempt from 1 December?
Lets of more than 30 nights without hotel-type services, such as seasonal lets of one or several months or long-term lets of a main home. Short stays in the home where the owner actually lives also remain exempt, provided no hotel-type services are included.
Does it affect bookings I already have for December and the following months?
It may, because the new rule applies to stays from 1 December and the decree sets no special regime for earlier bookings. If you were paid in advance for any of those stays, check with your tax adviser how to invoice them.
What happens if the decree is not validated?
If the Standing Committee of Congress (Diputación Permanente) does not validate it in time, the decree is repealed and the VAT change will never apply: holiday lets will stay exempt unless they include hotel-type services. As of 16 October 2026, no date has been set for the vote.
