As in various EU Member States, the Spanish Government is considering a new approach to the VAT treatment of short-term accommodation rental services, as there is an increasingly widespread practice in many Spanish cities.
The proposition would eliminate the VAT exemption for local short-term accommodation rental services. The main objective is to ensure a level-playing field for both private rental services and regular hotels. It is also a way to address housing shortages and reduce competition both sectors.
The bill proposes a 21% VAT rate on rentals under 30 days in cities with more than10,000 inhabitants.
