Following on from the Prime Minister’s announcement that he will introduce 100% taxes on the sale of homes to non-EU citizens Pedro Sanchez is also to raise taxes on holiday rentals to ensure they contribute to the economy on par with businesses.
The move addresses growing concerns over rising rents in major cities, fuelled by the expansion of short-term rental platforms. Speaking at a housing event, Sánchez criticized the current tax system, saying, “It’s unfair that individuals with multiple short-term rental properties pay less tax than hotels or regular workers.”
The tax hike aligns with a new European Union directive on VAT for digital platforms. While hotels are subject to a reduced 10% VAT rate, platforms like Airbnb are taxed under different rules. Sánchez also pledged stricter regulation of short-term rental platforms to combat fraud and misleading listings, though specifics remain unclear.
Housing affordability has become a critical issue in Spain, driven by gentrification and the shift of residential properties to short-term rentals. To address this, the government plans to incentivize landlords in high-rent areas to maintain affordable prices and expand social housing.
Despite these efforts, Sánchez’s minority government faces challenges in implementing the measures due to parliamentary opposition. Housing protests and warnings from the Bank of Spain underscore the urgency of resolving the crisis.
