Government to regulate room and seasonal rentals and raise tourist IVA

The Council of Ministers announced on Monday a royal decree-law to regulate seasonal and room rentals, extend contracts and raise IVA on tourist apartments.

The new text will include IRPF reductions for landlords who lower prices and measures to combat rental fraud. The government reached an agreement with Sumar but still needs Junts support, which demands fiscal changes.

The measures are split into two blocks: one to lower prices and stabilise contracts, and another to mobilise affordable housing by raising IVA to 21% on tourist apartments.

The Tenants Union demanded inclusion of an anti-fraud law and an eviction moratorium. Minister Elma Saiz described the decree as ambitious and under negotiation.

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Illustration of Spanish Congress rejecting rent extension decree, with vote tally and Minister Bustinduy speaking.
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Spanish Congress rejects rent extension decree

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Spain's Congress rejected a decree-law extending the rent freeze on Tuesday, with 177 votes against from PP, Vox, Junts, and UPN, against 166 in favor and 5 PNV abstentions. The measure would have affected around three million tenants, according to the government. Minister Pablo Bustinduy defended it and urged the PSOE to reintroduce it.

The Confederación de Sindicatos de Inquilinas called on Monday for the PSOE and the government to hold a vote on reforming the Ley de Arrendamientos Urbanos to regulate room and seasonal rentals.

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The Supreme Court has annulled the national single registry for tourist and seasonal rentals, ruling it oversteps the competencies of autonomous communities. The ruling upholds the digital single window and data-sharing obligations.

The Senate this week approved the idea of legislating the national reconstruction bill with 26 votes in favor. The initiative seeks to cut the corporate tax rate from 27% to 23% and establishes tax invariability.

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President José Antonio Kast signed two bills and a decree on Monday at Cerro Castillo to create a vandals registry, raise the debt limit and launch a return plan for irregular migrants.

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