10% VAT on tourist rental properties from 1 December

From 1 December 2026, letting a furnished dwelling to the same tenant for 30 nights or fewer will be subject to VAT at 10%. Until now, such lettings have in most cases been exempt. The exemption will remain only where the property is the landlord’s own habitual residence.

The impact depends on how the property is managed. It is greatest for owners who manage the letting themselves and practically nil for those who assign its operation to a third party. Owners affected will also need to register for VAT before 1 December and start issuing an invoice for each stay.

In this Information Note from our Tax and Public, Administrative and Planning Law practices, we analyse the change, its effects on each type of owner, the formal obligations involved and other practical matters, such as the treatment of bookings paid in advance.

You can read the Information Note below: