The government's plan to slap a 21% VAT and allow up to 100% IBI surcharge on tourist apartments is a blunt instrument that will harm small property owners and the tourism economy. Many of these apartments are run by retirees, families, or small investors who rely on seasonal rentals to supplement their income. Doubling the property tax and adding VAT could make their businesses unviable, forcing them to sell or rent long-term at lower rates. The measures may also reduce Spain's appeal as a tourist destination, hurting local businesses that depend on visitor spending. Enforcement will be difficult; many rentals operate informally, and higher taxes could push more transactions into the black market. The housing problem is real, but it requires more nuanced solutions, like building more social housing or improving public transport to reduce pressure on city centers. Punishing a whole sector with blanket tax hikes is unfair and could backfire, leading to job losses and less tax revenue overall. The government should engage with stakeholders before rushing such profound changes.
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Opposing the new tax measures on tourist apartments
Published July 28, 2026 at 7:32 AM UTC