As a result of Directive (EU) 2025/516 , from 1 July 2028, owners of properties dedicated to holiday rentals will have the status of entrepreneurs. These will be the new obligations, pending the transposition of this regulation into Spanish law.
New obligations for landlords of vacation homes will be:
- Register as a business owner with the Treasury: This involves recording your economic activity related to tourist rentals in the business census.
- Apply VAT to all short-term rentals: Rentals for a maximum of 30 consecutive nights. This obligation will apply regardless of whether hotel-related services such as cleaning or breakfast are offered. The transposition of the regulation eliminates the current distinction based on the provision of these services.
- Periodic VAT declaration: The applicable VAT rate is expected to be 10%, similar to that for other tourism services.
- Other obligations arising from the business status:
• Keeping records of transactions.
• Retaining all documentation (invoices issued and received, logbooks, etc.) for a minimum of four years.
• Issuing electronic invoices for each transaction. If there are platforms acting as intermediaries, they may be responsible for issuing invoices and collecting VAT on your behalf in some cases, acting as tax intermediaries. If you rent directly, the owner will be solely responsible for managing taxation. - Deduction of VAT paid: For expenses related to the activity: renovations, furniture, supplies, or cleaning services.
- Digital One-Stop Shop for Rentals: In addition to tax obligations, tourist, temporary, and room-based rentals will be registered for marketing.
This regulation will only apply to short-term rentals (less than 30 nights). Long-term rentals of traditional homes will remain exempt from VAT.
Failure to comply with these tax obligations can result in significant financial penalties, surcharges, and legal issues with the Treasury.
