Latest news with #Apartur
Business Times
25-05-2025
- Business
- Business Times
Spain considers new 21% VAT on short-tourism rentals, double the hotel rate
[MADRID] The Spanish government is seeking parliamentary approval for a new 21 per cent value added tax (VAT) on short-term tourism rentals – double the tax paid for hotel rooms – as it seeks to address a housing crisis. The maximum tax rate would apply to all rentals under 30 days and affect around a third of the 94 million annual visitors to Spain last year who opted to rent a home over a hotel room. At present, there is no VAT on short-term rentals in mainland Spain, while hotel visitors pay a 10 per cent tax on rooms. The measure is contained in a wider bill that the minority, Socialist-led government may struggle to get through a deeply polarised parliament. 'Homes are for living in (...) the measures seek to guarantee the right to rental housing for families,' Housing Minister Isabel Rodriguez said on Friday (May 23) about the bill's unveiling. Spain is trying to balance maintaining tourism as its economic engine while addressing popular concern over high housing costs as landlords opt for more lucrative tourist rentals. A Bank of Spain report last week said that the country has a deficit of 450,000 homes. Half the housing stock in the Canary and Balearic islands is either tourist accommodation or homes owned by non-residents, it said. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Apartur, an association of tourism apartment owners in Spain's second city Barcelona, argues that shorter-term rentals should pay the same VAT as hotels and calls the proposed 21 per cent VAT rate discriminatory. The bill under consideration also includes a controversial measure first announced in January to tax non-European Union citizens up to 100 per cent on property purchases unless it will be their primary home, as well as increasing taxes payable by owners of empty properties, including second homes. 'The sole objective is to put an end to these activities and leave (tourism) in the hands of hoteliers,' said Javier Penate, legal adviser to a holiday homeowners association in the Canary Islands, where short-term rentals already pay 7 per cent VAT, as do hotels. Local and regional authorities are also capping new licences for tourist rentals in Malaga and Madrid, while banning them entirely in Barcelona by 2028. REUTERS
Zawya
23-05-2025
- Business
- Zawya
Spain considers new 21% VAT on short-tourism rentals, double the hotel rate
The Spanish government is seeking parliamentary approval for a new 21% value added tax on short-term tourism rentals - double the tax paid for hotel rooms - as it seeks to address a housing crisis. The maximum tax rate would apply to all rentals under 30 days and affect around a third of the 94 million annual visitors to Spain last year who opted to rent a home over a hotel room. At present there is no VAT on short-term rentals in mainland Spain, while hotel visitors pay a 10% tax on rooms. The measure is contained in a wider bill that the minority, Socialist-led government may struggle to get through a deeply polarised parliament. "Homes are for living in (...) the measures seek to guarantee the right to rental housing for families," Housing Minister Isabel Rodriguez said on Friday about the bill's unveiling. Spain is trying to balance maintaining tourism as its economic engine while addressing popular concern over high housing costs as landlords opt for more lucrative tourist rentals. A Bank of Spain report this week said the country has a deficit of 450,000 homes. Half the housing stock in the Canary and Balearic islands is either tourist accommodation or homes owned by non-residents, it said. Apartur, an association of tourism apartment owners in Spain's second city Barcelona, argues that shorter-term rentals should pay the same VAT as hotels and calls the proposed 21% VAT rate discriminatory. The bill under consideration also includes a controversial measure first announced in January to tax non-European Union citizens up to 100% on property purchases unless it will be their primary home, as well as increasing taxes payable by owners of empty properties, including second homes. "The sole objective is to put an end to these activities and leave (tourism) in the hands of hoteliers," said Javier Peñate, legal advisor to a holiday homeowners association in the Canary Islands, where short-term rentals already pay 7% VAT, as do hotels. Local and regional authorities are also capping new licences for tourist rentals in Malaga and Madrid, while banning them entirely in Barcelona by 2028.
The Sun
01-05-2025
- Business
- The Sun
Spanish holiday hotspot postpones plan to hike tourist tax in respite for Brit travellers
SPAIN'S favourite tourist destination has delayed its plan to hike its tourist tax on visitors. The proposed tax, which could cost visitors €15 a day (£12.74), has been delayed to October by the regional government over fears around legal challenges. 7 7 7 British sangria swiggers can breathe a sigh of relief as the move, which was originally planned to come into force in Catalonia, Spain, this May has been delayed. Catalonia, which is home to tourist hotspot Barcelona, proposed the tax in the wake of widespread protests which erupted last summer in opposition to over-tourism. The region is the most popular tourist destination in the country, and its capital, Barcelona, is British holidaymakers' favourite European city destination. Rather than whacking up the tax, which currently stands between €6-11, Catalonia's government delayed the move at the last minute yesterday to pursue parliamentary approval. Currently, the severity of the levy is calculated according to how luxurious tourist lodgings are. Even cruise ship passengers can't escape the charge, which is calibrated in line with the hotel star system. For example, at present, Barcelona, the regions iconic capital, charges guests in four-star hotels €5.70 (£4.80) and those in five-star hotels €7.50 (£6.10). Just yesterday, Locals flocked to the streets, squirting paella -loving punters with water guns to protest the rocketing house prices in the wake of the mounting swell of visitors year on year. The attack marks the start of a long summer of predicted protest carnage with mass demonstrations planned across Spain in the next few weeks. Spain expects to surpass last year's record of 94 million tourists, with tourist arrivals in Catalonia up 10% in the first two months of 2025. Shockingly, this is a conservative increase compared to the 13% jump in tourists flocking to Spain's capital, Madrid. But still, Barcelona's room rates ballooned disproportionately, rising 10% in the year before March, 7% more than Spain's average rental inflation of 3%. In 2024, the historic city received over 30million visitors-- that's nearly half the UK's entire population. 7 7 7 7 This has put mounting financial pressure on Barcelonians, and fury is building as many feel priced out of their home city. The Mayor of Barcelona promised that at least 25% of tax revenue will go directly into a pot to alleviate housing shortages and spiralling rents. Perhaps unsurprisingly, Barcelona's association of tourism apartments, Apartur, opposed the increase arguing that it would make holidays more expensive, and proposed that the tax is increased gradually.
