As of 2026, Spain is moving forward with major reforms aimed at tackling housing shortages and reducing speculative property investment in high-demand areas. Two key measures are at the center of this shift:
A 21% VAT on short-term rentals
A proposed 100% purchase tax for non-EU, non-resident buyers
While not all elements are fully implemented yet, these proposals are already influencing the property market and investor behaviour.
Short-term rentals in Spain have traditionally been exempt from VAT, provided no hotel-like services were offered. However, new regulatory changes aim to apply:
21% VAT on short-term rentals (under 30 days)
Applies even without additional services (cleaning, linen, etc.)
Likely to impact most holiday rentals
Property owners renting via Airbnb, Booking.com, etc.
Non-resident landlords
Investors with holiday properties in urban and coastal areas
👉 The objective is to reduce the advantage of short-term rentals and encourage long-term housing.
Another widely discussed measure is a proposed 100% tax on property purchases by non-EU, non-resident buyers.
If implemented:
A €300,000 property could incur €300,000 in additional tax
Applies primarily to investment purchases
Aims to limit speculative buying and increase housing availability
⚠️ This measure is still under discussion
⚠️ Final details, scope, and possible exemptions are not yet confirmed
The reforms respond to increasing pressure across Spain:
Rapidly rising rents in cities like Barcelona, Valencia, and Málaga
Growth in tourist rentals reducing long-term housing supply
Public concern over affordability and overtourism
Increase availability of long-term rental housing
Stabilise property prices
Generate public revenue for housing initiatives
You may need to register for VAT
Charge and declare 21% VAT (typically quarterly)
Review whether switching to long-term rentals is more efficient
Monitor legislative developments closely
Consider residency options to avoid potential restrictions
Evaluate alternative investment structures
Even before full implementation, these changes are already:
Increasing regulatory scrutiny
Affecting investor confidence
Encouraging a shift toward long-term rentals
👉 Acting early can help you optimise your tax position and avoid future risks.
Taxadora supports non-residents and property owners by:
Advising on the tax impact of new regulations
Assisting with VAT registration and compliance
Handling rental income declarations (Modelo 210)
Supporting transitions from short-term to long-term rentals
Spain’s 2026 reforms mark a significant shift in how the government approaches housing, tourism, and foreign investment. While some measures are still evolving, the direction is clear: tighter regulation and higher compliance requirements.
If you own property or are considering investing in Spain, staying informed and adapting early is essential.
👉 Read more about declaring rental income in Spain:
https://taxadora.com/sv/deklarera-uthyrning-i-spanien/
