Latest / STR Unpacked / 62 Days To Reprice
Transcript
- Ben: Good morning and welcome to your short-term rental bulletin on the 30th of September. So over in Spain today, and Spain has ended the VAT exception on short-term rentals. It was in the official Gazette this morning, which I've attached down below. So the Royal Decree Law 26 slash 2026 was signed Tuesday and published today, Wednesday, the 30th of September. So from the 1st of December. A furnished let of 30 nights or fewer gets the same stops being exempt and is taxed at 10%. Until now, a furnished flat lost that exemption only if a landlord supplied hotel type services. So we're talking like restaurants, cleaning, laundry, that kind of thing, right? The test is untouched word for word. But the decree bolts on this second trigger alongside it. And the second one is pure duration. Either alone is enough. A let of 31 nights or more with no hotel services stays exempt, and the same decree caps a tourist letting at 31 days in the Leases Act. So 30 nights for the tax and 31 days for the housing rule. An exempt let recovers no input VAT. A taxable one does. So from the 1st of December, you charge 10% and you start recovering VAT on new spent. Not that sofa you bought in 2022, which comes back only through the capital goods adjustment, if at all, if we're being completely honest. But hold your gross price and you lose roughly about 9% of the net. And none of this reaches Canary Islands, Feyuta, or Maila, which sit outside of Spanish VAT. So two more links. Councils in a stressed housing market can surcharge the property tax on a tourist-use dwelling. Up to 150%, where you hold four or more from 2027 tax year and accruing to 31st of December 2027. And Spain has finally written the penalty rules for the EU short-term rental regulation 133 days after the deadline in its article 15. So we're talking a 1 million euros for the worst reach, rising to 2% of Prior year global turnover. That regulation lets member state penalise platform and in its own words where appropriate hosts. Spain took platforms and left the hosts out mas or menos. So it's 62 days to the first of December, if you can believe it. And this is a decree law. So that means that the lower house must confirm it by the 29th of October. So Spain has stopped exempting shortlets and started taxing them. So for December, price both ways, but really watch what's going to happen by the 29th of October. So thank you for watching, and I'll see tomorrow.