Know the law: short-term rentals in Spain
In most Spanish autonomous communities, property owners require a special licence to set up
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When do you need a licence?
Each autonomous community regulates tourist accommodation, and municipalities may add planning restrictions. Registration or a responsible declaration can be required even when no hotel services are offered. For a new tourist letting in a building under the horizontal-property regime, prior express approval by three fifths of owners and ownership shares has also been required since 3 April 2025.
| Letting arrangement | Regulatory treatment |
|---|---|
| Tourist letting of a furnished home, with or without hotel services | Subject to the applicable regional registration or authorisation and municipal planning rules. |
| Letting for the tenant’s permanent home | Residential tenancy rules apply; calling a contract “long-term” or extending it beyond one or two months does not by itself establish its legal category. |
Room letting is governed separately in each region. Madrid’s vivienda de uso turístico regime concerns an entire dwelling, whereas Andalusia permits room letting under specific conditions, including residence by the operator. Tourist letting is commonly identified by these features, with the precise definition set by regional law:
- property classified as residential
- rented out to tourists for short periods (from several days to one or two months)
- rented using booking systems
- advertised using specialised websites, platforms and apps (e.g., Airbnb, FlipKey, HomeAway, TripAdvisor, Tripping, VRBO, etc).
| VAT treatment as at 7 October 2026 | Rule |
|---|---|
| Accommodation with hotel-type services | 10% VAT. |
| Simple letting without hotel-type services | Generally VAT-exempt under the rules currently applicable; this does not remove tourist-registration requirements. |
Real Decreto-ley 29/2026, published on 7 October, provides for 10% VAT from 1 December 2026 on furnished accommodation let to the same guest for up to 30 nights, except where the rented accommodation is the landlord’s habitual residence.
Technical requirements depend on the region, municipality and type of accommodation. They may cover a certificate of occupancy or equivalent, ventilation, cooling, hot water, fire safety, occupancy limits, working appliances, furniture, bed linen and bathrooms. Madrid additionally requires a CIVUT suitability certificate.
Registration costs and validity vary by procedure and region. Madrid’s responsible-declaration procedure has no application fee, although technical certificates and other professional work may cost money. In the Valencian Community, tourist-home registration is valid for five years.
The landlord must also have insurance covering issues like tenant health and injuries, property damage and burglary.
Regional specifics
Tourist letting is regulated at regional level across Spain. In Castilla-La Mancha, for example, Decreto 36/2018 governs tourist apartments and tourist-use homes. Owners must also comply with municipal planning requirements.
| Community | Selected current requirements |
|---|---|
| Andalusia | Decreto 28/2016 as amended by Decreto 31/2024; responsible declaration, with different conditions for whole-home and room letting. |
| Madrid | Responsible declaration and CIVUT; the regional procedure concerns entire homes and does not replace municipal planning compliance. |
| Valencian Community | Tourist stays of up to 10 consecutive days for the same guest; registration lasts five years. |
| Catalonia | Tourist-use homes are let in their entirety for stays of up to 31 days; regional and municipal requirements both apply. |
| Castilla-La Mancha | Tourist apartments and tourist-use homes are regulated by Decreto 36/2018. |
| Canary Islands | Law 6/2025 governs tourist use of housing, with transitional provisions for existing activities under Decree 113/2015 and applicable municipal planning requirements. |
| Navarre | Decree Foral 230/2011 regulates tourist apartments; registration and operating requirements depend on the accommodation category. |
Requirements vary by municipality as well as by autonomous community. Check the rules for the property’s location and accommodation category before starting a tourist letting.
Buying an already licensed tourist flat in Barcelona does not guarantee that its tourist use can continue indefinitely. The city has announced that existing tourist-flat authorisations will not be renewed when they expire in November 2028. Long-term residential letting is a separate use subject to its own tenancy rules.
Registration, operating dates and sanctions depend on the regional and municipal procedure: some procedures use a responsible declaration, while others require prior authorisation. Rental income must be reported in Spain under the applicable filing rules and, where required, in the owner’s country of tax residence. Citizenship alone does not determine that second reporting obligation.
Rental income tax and other expenses
For non-resident individuals without a permanent establishment, Spanish rental income tax is generally 24%, or 19% for qualifying residents of the EU and EEA with effective tax-information exchange. The general 24% regime taxes gross rent without deducting ordinary expenses; qualifying EU/EEA residents can deduct expenses linked to the income. Thus €20,000 of gross rent at 24% produces €4,800 of tax. Filing and payment deadlines follow the applicable Modelo 210 rules.
Property owners also pay municipal property tax. It varies by autonomous community from 0.405% to 1.166% of the cadastral property value. The tax amount usually ranges from €200 to €800 per year. In addition, owners of
The management company commission may become another expense if the owner does not manage the property independently. The fee is at least 5% of the rental income. In other words, if a property is rented out using a specialised website like Airbnb, commission is about 10%.
How much you can earn
As an illustrative scenario, a property earning €500 per night for 180 occupied nights generates €90,000 of gross rent. At 24% tax on gross rent, income tax would be €21,600; deducting illustrative annual maintenance of €2,500–2,800 leaves €65,600–65,900 before management, finance costs and other charges. Actual income depends on the nightly rate, occupancy and costs. Any applicable VAT must be accounted for separately.
This article by Tranio.com is for informational purposes only. The regional legislation of Spain is subject to constant change and Tranio.com strongly recommends contacting certified lawyers and tax experts in Spain before deciding to purchase.
Yulia Kozhevnikova, Tranio
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