EU VAT Revolution: What July 2028 Means for Short‑Term Tourist Rentals in Spain
Landlords and high-end hosts, pay attention! A game-changing EU tax shift lands on July 1, 2028—and it zeroes in on short-term stays you license as “touristic”.
What is changing?
Starting July 1, 2028, the EU will require VAT on all short-term rentals (under 30 nights), regardless of added services.
Who this affects
In the Valencian Community (including Murcia), touristic licences only apply to rentals up to 9 nights (max 10 days). These properties must apply VAT once the rule takes effect.
What about rentals of 11 days or more?
Rentals lasting 11 days or longer are not considered “touristic” and thus:
- Do not require a tourist licence,
- Cannot be listed on platforms like Airbnb or Booking.com,
- Are treated as seasonal or long-term, and
- All income is still fully taxable under Spanish income tax (IRPF or corporate tax).
Why this update?
EU Directive 2025/516 aims to fix VAT imbalances—hotels already pay, short-term holiday rentals haven’t—for fairness in the lodging ecosystem.
What landlords must do by mid‑2028
| Action | Details |
|---|---|
| VAT registration | Get a VAT number in Spain (and use OSS for multi-country operations) |
| VAT collection | Charge 10% VAT on all nights for licenced properties ≤9 nights |
| Bookkeeping & compliance | Maintain VAT invoices, file returns quarterly |
| Platform coordination | Airbnb, Booking .com may remit VAT if host isn’t registered— but responsibility stays with you |
| Pricing strategy | Decide whether to absorb the VAT or pass it to guests in advance pricing |
Key implications for GeresHomes hosts:
- Luxury stay pricing: New pricing models must explicitly include VAT for stays up to 9 nights.
- Clear compliance communication: Your listings must display tourist licence and VAT info transparently.
- Longer stays must be managed differently: Rentals of 11+ days become seasonal or long-term agreements—compliant with income tax but not eligible for booking via tourist platforms.
- Plan ahead: With less than 3 years until July 2028, timely setup is essential.
Future watch: 21% VAT proposal 🚨
Spain is debating upping the VAT from 10% to 21% on short-term tourist rentals as part of a housing reform to reprioritize residential use. This could apply as early as 2028—worth preparing for budget-wise.
Bottom line for GeresHomes
- Rentals up to 9 nights: now subject to VAT (10%, possibly rising to 21%) from July 1, 2028—prepare VAT setup now.
- Rentals of 11 days or more: shift business model to seasonal/long-term—comply with income tax, but no VAT or tourist licence; must avoid tourist platforms.
SOURCES
Council adopts VAT in the Digital Age package – covering the implementation of VAT for platforms and short-term accommodation from July 1, 2028 euronews.com+12meijburg.com+12globalvatcompliance.com+12
Edeal Homes: Complete guide to Directive (EU) 2025/516 – details on the directive requiring 10 % VAT on holiday rentals, even without extra services cazahar.com+2edealhomes.com+2propertycarecostabrava.es+2
“From 2028 VAT on tourist rentals in Spain, even without the provision of additional services” – confirmation that all short-term rentals <30 nights pay VAT regardless of services vatcalc.com+7propertycarecostabrava.es+7cazahar.com+7
Spanish government proposes 21 % VAT – note on the potential increase of VAT on short-term tourist rentals to standard rate travelweekly-asia.com+2shorttermrentalz.com+2vatcalc.com+2
Cazahar: From 2028 VAT on all Airbnb rentals in Spain – outlines mandatory VAT from July 2028 and the definition of short-term rentals reuters.com+9cazahar.com+9edealhomes.com+9
Accountancy Europe: VAT in the Digital Age (ViDA) – summarizes extension of deemed supply rules and OSS updates ec.europa.eu+7accountancyeurope.eu+7globalvatcompliance.com+7
