Spain authorises up to 150% IBI surcharge on holiday rental properties
A new Spanish decree lets municipalities in stressed housing zones add up to a 150% surcharge on property tax for homes used as holiday rentals, based on the number of units owned.
On October 7, the Spanish Official State Gazette released Royal Decree Law 29/2026, granting municipal councils in declared stressed housing zones the power to impose extra IBI taxes on homes operating as holiday rentals. The surcharge scales with the number of rental units an owner holds: up to 50% for one property, up to 100% for two or more, and up to 150% for four or more, potentially raising a €1,000 bill to €2,500.
The tax only applies to residential properties officially registered for tourist accommodation and only if the local council adopts the surcharge through its tax ordinance, with the first payment due by December 31. The government frames the policy as a tool to encourage permanent residential use and increase affordable housing, complementing other measures such as a 10% VAT on short-term rentals. The decree still requires parliamentary approval, so further political developments could modify its implementation. Owners, especially foreign investors with multiple rentals in areas like the Costa del Sol or Costa Blanca, should monitor local decisions as the additional cost could be substantial.
Why it matters
The surcharge could dramatically raise costs for holiday-rental owners and affect Spain's housing market.
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