New 10% VAT on Short Holiday Rentals in Spain: What Marbella Villa Owners Should Know

A new decree changes how short stays are taxed from 1 December 2026, if Congress confirms it in time.

Tax rules for holiday rentals in Spain don’t change often. This autumn, they might.

On 7 October 2026, Spain’s Official State Gazette (BOE) published Royal Decree-law 29/2026, a broad housing package. Two of its measures matter for anyone who rents out a villa or apartment to holidaymakers: VAT on short furnished rentals, and an optional surcharge on property tax (IBI) for tourist homes in stressed housing areas.

There is one big “but”. The decree still has to be confirmed by Congress.

This article explains what the published text says. It is not tax or legal advice: every owner’s situation is different, and you should go through it with your tax adviser.

What Is Royal Decree-law 29/2026?

A royal decree-law is an urgent rule approved by the Government. It takes effect straight away, but Congress has to vote to confirm it (“convalidar”) within 30 working days.

Royal Decree-law 29/2026, of 6 October, was published in the BOE on 7 October and came into force the next day. Most of it deals with long-term housing: rental contracts, rent updates, evictions and housing supply. Some measures, including the VAT change, only take effect later.

The VAT Change: 10% on Stays of 30 Nights or Less

Until now, renting out a furnished home in Spain was generally exempt from VAT, unless the owner also provided hotel-type services such as cleaning, laundry or a restaurant.

Article 7 of the decree changes that, with effect from 1 December 2026:

• Rentals of furnished apartments or homes will no longer be exempt when the stay for the same tenant does not exceed 30 nights
• The exception: if the home is the owner’s own habitual residence, the rental stays exempt
• These rentals move to the reduced VAT rate of 10%, the same rate already applied when hotel-type services are provided

The Spanish Tax Agency (AEAT) summarises it the same way in its note on the decree: from 1 December 2026, furnished rentals of no more than thirty nights, in a home that is not the owner’s habitual residence, are no longer exempt and are taxed at the reduced 10% rate.

What this could mean for a villa owner

If the decree is confirmed, many short stays in a holiday villa would, in principle, carry 10% VAT from 1 December. How that works in practice depends on your situation, for example:

• Whether you rent as an individual or through a company, and whether you are tax resident in Spain
• How your bookings are invoiced and through which channels
• What happens with bookings already confirmed for stays from 1 December onwards
• How VAT interacts with your other taxes on rental income

The decree doesn’t answer these questions for your specific case. [PENDIENTE DE VERIFICAR: si la AEAT publica criterios o preguntas frecuentes sobre reservas confirmadas antes del 1-12 y sobre propietarios no residentes]. This is exactly what to review with your tax adviser.

The IBI Surcharge: Optional, and Only in Stressed Areas

Article 8 changes the law on local taxes so that town halls can add a surcharge to the property tax (IBI) on homes used as tourist accommodation:

• Only in municipalities located in a “stressed residential market area” (zona de mercado residencial tensionado) under the 2023 Housing Law
• Up to 50% of the IBI bill
• Up to 100% if the owner has two or more homes used for tourist accommodation
• Up to 150% if the owner has four or more
• It is optional: each town hall must approve it in its own tax bylaw (ordenanza fiscal)

Is Marbella a stressed area?

As far as we can see, no. In August 2026, Diario Sur reported that Marbella’s mayor had ruled out applying for the declaration, saying the town “does not meet any of the parameters” for such a request, and the regional housing minister said no Andalusian municipality had applied. Things can change, so check the Ministry of Housing’s official list of stressed areas, and your town hall’s tax bylaws, if you own property elsewhere.

Still Pending: The Vote in Congress

The decree is in force, but it is not final.

• With the Cortes dissolved for the general election of 29 November 2026, the vote falls to Congress’s Permanent Deputation
• According to EFE, sources at the Bureau of Congress put the deadline at 13 November 2026. The press points to a vote on 12 November, but no official date had been set when we wrote this. [PENDIENTE DE VERIFICAR: fecha oficial de la votación]
• If Congress does not confirm it, the decree lapses, and the VAT change planned for 1 December would not take effect

In other words: prepare, but don’t make irreversible decisions until the vote.

What You Can Do Now

Without taking any tax decision yet, a few practical steps help:

• Talk to your tax adviser before mid-November about how a 10% VAT would affect you
• List your confirmed stays from 1 December onwards, with dates, nights and channel, so your adviser has the full picture
• Check how your prices are shown on each channel and on your own website
• Follow the vote and any guidance from the Tax Agency
• Don’t panic-change your prices before the outcome is known

Common Mistakes to Avoid

• Assuming it’s already final. It depends on the vote in Congress.
• Assuming it affects every stay. The text refers to furnished rentals of 30 nights or less to the same tenant, with an exception for the owner’s habitual residence.
• Confusing the VAT change with the IBI surcharge. The surcharge is optional and only for municipalities in stressed areas.
• Making changes without advice. Pricing, invoicing and contracts all need a professional review.

How Professional Management Helps

Rule changes like this are when owners most appreciate having a team on their side. Marbella in Style doesn’t replace your tax adviser, but we make their job, and yours, much easier.

• Clear records: monthly statements and a digital revenue dashboard with every booking, so you and your adviser have the data you need
• Pricing that adapts: our dynamic pricing technology and revenue management strategies let us adjust rates quickly, once you and your adviser have decided how to handle the change
• Registration and compliance support: we handle the registration of your home as a holiday rental and police registration of guests as part of onboarding
• A local team since 2008: we follow regulatory news for Marbella and keep our owners informed

Homeowners who switch to Marbella in Style from another vacation rental manager earn an average of 20% more per year.

Talk to Us About Your Property

Whatever the vote decides, you’ll want your villa’s income in good hands.

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