What Spain's Decree Lets Councils Add to IBI Tax on Tourist Homes: Up to 150%

Spain's government published Royal Decree-law 29/2026 in the Official State Gazette on 7 October 2026. The decree, dated 6 October, allows town halls in officially stressed housing areas to add surcharges of up to 150% to the IBI property tax on tourist homes. A Conversoria summary says it took effect on 8 October.

Congress rejected earlier housing decrees on 2 October. Each council must still adopt the surcharge through its own tax ordinance, and parliamentary validation is outstanding as of 18 October 2026.

Surcharge Tiers Rise With the Number of Tourist Properties an Owner Holds

The surcharge is calculated as a share of the IBI property tax and applies to residential property registered as tourist accommodation under regional rules. Owners with one such property face a maximum of 50%. Owners with two or more can be charged up to 100%, and owners with four or more up to 150%. Olive Press gives an example: an annual IBI of €800 would rise to €1,200 at 50% and €2,000 at 150%.

The measure reaches only municipalities inside areas formally declared to have a stressed residential housing market. Each council decides whether to use it, so rates and procedures can differ from town to town. The surcharge accrues on 31 December and is settled annually.

Euro Weekly News reports that the new surcharge "does not automatically apply to every holiday home or second home in Spain." Olive Press reports that in Seville and Málaga, almost one in two rental properties in the historic centres is used for tourist purposes. It also reports that the decree states at least six Canary Islands municipalities have more tourist accommodation places than residents.

A 10% VAT on Short Furnished Rentals From 1 December

A Conversoria summary says the decree amends Spain's VAT law with effect from 1 December 2026. Furnished rentals would be taxed where the landlord provides hotel-type complementary services, or where a stay with one tenant does not exceed 30 nights. Rentals of the owner's habitual residence are exempt.

Euro Weekly News reports the VAT as 10% 'in certain circumstances' and gives no start date or further detail. Spain's tax agency says Title II of the decree introduces changes to personal income tax and VAT, and points readers to the full text for the detail.

What the Rejected Decrees Contained, and the Vote Behind Them

Congress rejected the earlier decrees on Friday, 2 October 2026, with Junts, the People's Party and Vox voting against, Catalan News reports. The first decree extended eviction protection until 2030, barred vulture funds from buying homes until 2028, and extended by two years active rental contracts that expire before the end of 2028.

Housing Minister Isabel Rodríguez offered to modify the texts by processing them as a bill, but Junts kept its opposition. Prime Minister Pedro Sánchez asked the parties to 'be brave' before the vote. Junts' Mònica Sales called it "incomprehensible and irresponsible" to ask Junts to vote for "some bad decrees that would be a defeat for the Catalans."

Validation Pending, With a 12 November Session Reported

Democrata reports that the Congress Permanent Deputation will decide on validating the two housing royal decrees approved by the Council of Ministers on 6 October, at a session on 12 November. The same report says validation must come within one month of that approval, which would be 6 November, before the session date.

Democrata places the session on the eve of the official start of the election campaign and lists the general election for 29 November 2026. Euro Weekly News reports that the decree still requires parliamentary validation and that political developments could affect the measures.

As of 18 October 2026, the decree is in force. Its IBI surcharges depend on council decisions, and parliamentary validation is still pending.