The Spanish government wants to introduce a 21% VAT rate on short-term rentals, double the hotel VAT, to combat the housing crisis

The Spanish government is planning to seek parliamentary approval for a 21% VAT rate on short-term rentals of tourist accommodation as part of a wider legislative project. The measure is aimed at addressing the housing crisis, with about a third of the 94 million tourists each year preferring rentals to hotels. Short-term rentals are currently not taxed and apartment owners consider the proposed rate discriminatory. The draft also includes measures to tax properties owned by non-residents and increase taxes on empty homes.