Spain has approved a wide-ranging housing decree that touches holiday rentals, taxes and tenancy rules. Here's a calm, practical look at what it actually says — and what it doesn't yet.
If you own a property on the Costa del Sol, or you're thinking of buying one, you've probably seen the headlines about Spain's new housing measures. The coverage has been loud and, at times, alarming. Our aim here is simpler: to set out what has actually been approved, what is still to come, and what it might mean for international owners in Fuengirola and the wider Costa del Sol — without the drama, and without taking any position on the politics behind it.
A short note before we start: the rules are new, some parts take effect on different dates, and how they apply depends very much on individual circumstances. Nothing below is tax or legal advice. For your own situation, speak to a qualified Spanish tax adviser or lawyer — and if you'd like an introduction to one, just ask us.
What the decree is
The package widely nicknamed the "Decreto Maricarmen" was approved by the Spanish government at the end of September 2026 as a royal decree-law. It brings together a broad set of housing measures — on rents, evictions, affordable housing and taxation — in a single text. The tenancy and eviction provisions began to take effect at the start of October 2026, while the main tax changes affecting tourist accommodation are set to apply from 1 December 2026.
The headline change: VAT on short-term lets
The measure most relevant to holiday-rental owners is a change to VAT (IVA in Spain).
From 1 December 2026, the renting of furnished homes to the same guest for 30 nights or fewer is due to stop being exempt from VAT and will instead be taxed at 10%. During the negotiations a higher rate of 21% was discussed and widely reported earlier in the year, but the rate written into the final text is 10%.
In practice, whether and how this affects a particular owner depends on how the property is let and managed, so this is exactly the kind of detail worth checking with an adviser rather than assuming the worst. What's clear is the direction of travel: short holiday stays are moving into the VAT system.
What about IBI?
You may also have read that tourist properties will "pay more IBI" — the annual local property tax. This one needs care, because it does not apply automatically everywhere.
The decree gives town halls the option to apply IBI surcharges on tourist housing (and on long-term vacant homes) in designated stressed-market areas, with the surcharge rising in steps depending on how many such properties an owner holds. It's an enabling power, not a blanket national increase: a surcharge only exists where a municipality has a stressed-market designation and has chosen to apply it. For most individual owners of a single holiday home, the day-to-day question is simply whether their town adopts such a measure — another reason to take local, specific advice rather than act on a national headline.
Holiday rental or seasonal rental? The distinction that matters
One of the most useful things the 2026 reforms do, from an owner's point of view, is to draw clearer lines between different kinds of letting — including regulating seasonal and room rentals more explicitly than before.
For international owners, the key distinction is between a holiday (tourist) rental — short stays, marketed to visitors — and a seasonal rental, a longer let for a defined, non-permanent purpose such as a few months' stay for work or study. They are different legal animals, with different rules and different tax treatment, and the right choice depends entirely on what you want from your property. If you've only ever thought of your home as a summer holiday let, it's worth understanding that a seasonal arrangement may suit some owners better under the new framework. Again: a conversation with a professional, not a guess.
What foreign owners should take from this
A few level-headed takeaways:
- Don't panic, and don't rush. The sky-high figures from earlier in the year (the 21% rate, automatic IBI rises) are not what ended up in the final text. The reality is more measured.
- Dates matter. The tax changes land on 1 December 2026, giving owners time to get advice before they take effect.
- Your circumstances decide the outcome. How you let, where the property is, and how it's structured all change what applies to you.
- Get specific advice. This is a moving area of law and the detail is everything. A good Spanish tax adviser or lawyer will save you far more than they cost.
None of this changes what has always made the Costa del Sol work for owners: steady international demand, a climate that fills the calendar well beyond summer, and a market that rewards a well-run, well-located home. If anything, clearer rules help serious, long-term owners plan with more confidence. For the wider picture on letting economics, our guide to investing to rent on the Costa del Sol is a good companion read, and owners thinking about the tax side more broadly may find our overview of non-resident property taxes in Spain useful.
As the rules bed in and further detail emerges, we'll keep this guidance current. In the meantime, if you own on the Costa del Sol and want to talk through what the changes might mean for your property — or you're weighing up a purchase and want to understand the lie of the land — we're here to help, and we'll point you to the right professional where specialist advice is needed.
The GR Estates Team
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Written with AI assistance and reviewed by the GR Estates team before publication. AI transparency
