Spanish holidays are about to get more expensive from December 1

Welcoming some 19 million of us each year, Spain is widely regarded as the most popular holiday destination for British travellers.

But anyone planning a winter getaway or booking ahead for next summer should expect to pay a bit more than usual.

That’s because from December 1, 2026, Spain is introducing a 10% VAT charge on furnished holiday rentals for stays of 30 nights or less, unless the property is the landlord’s habitual residence (that is, where they actually live).

Rentals where owners provide hotel-style services, such as cleaning, laundry, or restaurant facilities, will be liable for the tax. 

Spain has roughly 500,285 short-term rental listings split evenly between Airbnb and Booking.com, according to myDatavalue.

The move could increase accommodation costs for travellers visiting everywhere from Mallorca and Ibiza, to the Canary Islands and mainland Spain.

Why has Spain introduced the tax?

The Spanish government has brought in the tax to tackle a severe housing crisis.

Locals across major cities, including Madrid, Valencia and Barcelona, say they are being priced out by foreign investors, property funds, and the rapid growth of short-term holiday lets.

Spain faces a housing deficit of 800,000 homes by 2027, according to BBVA Research.

In recent weeks, the country has seen massive nationwide protests triggered by the housing shortage, rental prices (which have surged 87% over the last decade) and high-profile evictions, such as 87-year-old María del Carmen Abascal, who became a national symbol of the crisis before her death on October 7.

These protests follow years of growing anger about overtourism, which locals blame for driving up the cost of living, damaging the environment, and fueling the housing crisis.

Will my holiday be more expensive?

In short, yes.

Rupert Lee Browne, CEO of UK travel card company Caxton, tells Metro: ‘If the full 10% VAT is passed on to customers, a £1,000 rental would cost an additional £100, while a £2,000 booking would increase by £200.’

‘The actual impact will depend on the price of the property and how individual owners respond to the change, so there won’t be one universal increase for every traveller.’

Rupert says it’s worth checking whether the quoted price includes taxes and charges before booking, and ‘factoring accommodation into the overall holiday budget rather than looking at flights alone’.

He adds: ‘For anyone paying for their trip in euros, it’s worth considering the exchange rate and any fees associated with converting or spending money abroad, as these can affect the final cost of a Spanish holiday.’

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Will this affect Spanish tourism?

Spain has long been, and is very likely to continue being, the top choice for British holidaymakers, Andrew Harrison-Chinn, CMO of travel platform Dragonpass, tells Metro.

He ‘wouldn’t expect an extra £90 or £100 alone to suddenly stop families going to Spain’.

What it could do, however, is make people more price-conscious about where they stay.

For instance, a family ‘comparing Mallorca, Malaga, Alicante or Valencia may increasingly look at the total cost of the trip rather than automatically returning to the same resort.’

Andrew advises comparing the final price rather than the nightly rate to factor in the VAT, cleaning charges and other fees.

He recommends travelling outside of school holiday time where possible, being flexible on location and comparing flights across different airports as well as airlines.

‘Spain has spent decades building its position as one of the easiest and most familiar overseas holidays for British families,’ he adds.

So an additional accommodation cost is ‘unlikely to change’ British holidaymakers’ choice of country, Andrew says, but rather how people go about booking.

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