OWNERS of tourist accommodation in parts of Spain could see their annual property tax bills more than double under Pedro Sanchez’s new housing decree.
The legislation allows town halls in officially designated ‘housing-pressure’ areas to impose surcharges on residential properties used as tourist accommodation.
The standard surcharge can reach 50% of the annual IBI property tax bill. This rises to a maximum of 100% for owners with two or more tourist properties, and 150% for those with four or more.
The provisions appear in Royal Decree-law 29/2026, published in Spain’s Official State Gazette on October 7.
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For an owner currently paying €800 a year in IBI, a 50% surcharge would bring the bill to €1,200. At the maximum 150% surcharge, it would climb to €2,000.
However, the increase is not automatic, and it does not apply to every holiday rental across Spain.
The decree gives councils the power to introduce the surcharge only in municipalities within areas formally declared to have a stressed residential housing market under Spain’s housing law.
Each council would have to regulate its application through a local tax ordinance. The properties must also qualify as tourist accommodation under the relevant regional rules.
The measure forms part of a broader government package intended to encourage residential use of housing and increase the supply of affordable homes, according to the government’s explanation of the decree.
For holiday rental owners, the key questions are therefore whether their property lies in a formally designated ‘housing-pressure’ area and whether the local council chooses to use its new powers.
The decree states that the surcharge would accrue on December 31 and be assessed annually by councils. Owners with several tourist properties could consequently face substantially higher recurring costs wherever the measure is introduced.
Currently, tourist accommodation lacks a specific tax regime commensurate with its undeniable impact on residential housing. The latest Annual Report from the Bank of Spain indicates that this type of accommodation represents 10% of the rental market across Spain. The two most dramatic cases are Seville and Malaga, where almost one in two rental properties in their historic centers is used for tourist purposes. It is also important to note that there are at least six municipalities in the Canary Islands with more tourist accommodation than residents within the municipality itself.
The decree argues that tourist accommodation lacks a specific tax regime reflecting its impact on the supply of residential housing.
Citing the Bank of Spain’s latest annual report, the government says tourist accommodation accounts for 10% of Spain’s rental market.
It highlights Seville and Malaga as particularly striking examples, saying almost half of rental properties in their historic centres are used for tourist accommodation.
The decree also states that at least six municipalities in the Canary Islands have more tourist accommodation places than residents.
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