Holidaymakers planning a trip to Spain in 2027 could face an additional £120 on their accommodation costs, following the Spanish government's introduction of new tax rules. The legislation, scheduled to take effect from December 1, 2026, applies a 10% VAT charge to qualifying rentals of furnished holiday apartments and homes for stays of 30 nights or fewer, with an exemption for accommodation that is the landlord's main residence.
Who Pays and How Much
Phil Schofield at Schofields Holiday Home Insurance, which operates in the UK and Spain, said: “According to Holidu's 2026 research, holiday homes and apartments in Spain cost an average of €200 per night during the summer months. That's €1,400 for a seven-night stay, with a 10% charge adding €140 to the bill. For British holidaymakers, this works out at approximately £120 extra, depending on the exchange rate at the time of booking.”
Schofield noted that not every holiday rental will necessarily become 10% more expensive, as property owners may respond differently depending on their operating costs, profit margins and the level of competition in their area. Some may absorb part of the additional cost to remain competitive, particularly during quieter periods, while others may have less flexibility and choose to pass the increase on to guests.
Impact on Pricing and Budgets
Holiday let owners will also need to consider how any changes affect their pricing strategies. Properties in popular tourist destinations or those with strong demand during school holidays may be better positioned to increase their rates, while owners in more competitive markets could be reluctant to raise prices if it risks losing bookings.
Schofield advised travellers to factor increases into their budgets, compare prices across different regions and check whether VAT is already included in the advertised price before booking.
Ways to Save on Your 2027 Spanish Holiday
One useful trick is to reverse-image-search property photos after finding a rental online, to see whether the same accommodation is listed elsewhere. The property might be advertised at a lower price through another website, particularly if the host pays lower platform fees. It's always worth comparing the final price across several websites before booking, including any cleaning fees, service charges and additional taxes, as a property that initially looks cheaper may not always offer the best value once everything is included.
With accommodation costs potentially increasing, it's worth reaching out to hosts you've stayed with before, particularly if you're planning to return to the same destination. Holiday let owners often pay significant fees to platforms, so some may be willing to offer a better rate when guests book directly. Many professional hosts also manage multiple properties across different locations, so it's worth asking whether they have other accommodation available that might suit your budget. Booking directly can carry additional risks, so always verify that the host is legitimate, get the booking terms in writing and pay by credit card where possible for added protection.
Some of Spain's most popular holiday destinations are already expensive, particularly during the peak summer months. With the additional VAT charge potentially pushing prices higher, families may find themselves priced out of certain areas. That's why it's worth looking beyond the usual tourist hotspots and exploring quieter destinations where accommodation can be considerably cheaper. Even if you've already settled on a destination, it's worth looking beyond the busiest resorts. For example, visitors to Tenerife could explore smaller towns such as Icod de los Vinos or La Orotava rather than automatically booking in the popular southern resorts.
