VAT hike to 21% for tourist flats postponed due to lack of support

JSBy Joan SanzCurated by Joan Sanz. · July 29, 2026 · Follow on LinkedIn

Voice reading · ~1 min

On July 28, the Spanish government hit pause and postponed until September the approval of the Housing Decree-Law, which included hiking VAT to 21% for tourist apartments. The reason, as Hosteltur reports: lack of support from Junts and Podemos.

Industry bodies Federatur and AVVAPro have warned that this tax hike would make accommodation more expensive without tackling the housing issue, and would hit families who rent out their second homes hardest. My take: a breather, yes, but this isn't dead. Congress must vote on the text within 30 days of its publication in the BOE, and if the government can line up the numbers, the 21% could come back.

In my view, the delay is a chance to negotiate, but the sector shouldn't sit idle. Fiscal pressure on short-term rentals is going to grow, and those without clean accounting and proper invoicing will be caught out. Better use this extension to get your house in order, because when the proposal returns, it will come back with a vengeance.

Quick questions

When was the VAT hike supposed to take effect?

It was originally scheduled for approval on July 28 but has been postponed to September with no set date. Congress must vote within 30 days of publication in the Official State Gazette.

Why was the VAT increase delayed?

The government lacked parliamentary support from Junts and Podemos, so it temporarily withdrew the Housing Decree-Law to seek agreements.

Who is affected by the 21% VAT on tourist flats?

It affects owners renting out tourist apartments, many of them families supplementing their income. Platforms and agencies managing these stays are also impacted.

What do industry associations say?

Federatur and AVVAPro warn that the increase will make accommodation pricier without solving the housing crisis, and especially penalize small owners.

When will the measure be finally voted on?

Congress must vote on the Decree-Law within 30 days of its publication in the BOE, which has not happened yet. It could be in September.

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