Spain implements VAT on tourist apartments amid urban planning debates

Spain is implementing new fiscal and regulatory measures to address the proliferation of tourist apartments in major cities. Starting December 1, all tourist apartments will be subject to a 10% VAT. While the government intends for this to disincentivize short-term rentals in favor of long-term housing, some experts suggest the impact may be limited. Because owners will now be able to deduct expenses such as cleaning, painting, and plumbing from their taxes, the new VAT obligation may be offset by these deductions.

In terms of local regulation, cities like Málaga, Cádiz, and Bilbao have utilized moratoria to manage tourist housing. In Sevilla, the application of such a moratorium is legally possible under Andalusian urban planning laws and European jurisprudence, which allows for the suspension of licenses during urban planning updates. However, local leadership has indicated that a moratorium in Sevilla is currently not feasible due to previous modifications made to the General Urban Development Plan (PGOU) that did not include such provisions.