Spain plans to increase taxes on vacation rentals, requiring property owners to pay “like businesses,” Prime Minister Pedro Sánchez announced on Monday.
The tax hike comes amid a sharp rise in rental prices across the country.
“It’s unfair that those renting out three, four, or five apartments for short-term stays pay less tax than hotels or regular workers,” Sánchez said during an event in Madrid focused on affordable housing.
Housing has become a central issue in Spain as the country seeks to balance the growth of tourism—a key driver of its economy—with concerns over high rental costs driven by gentrification and landlords shifting to more profitable short-term vacation rentals.
Sánchez also promised stricter measures to combat fraud in the vacation rental market, though he did not provide details. Last month, authorities launched an investigation into Airbnb for failing to remove thousands of misleading rental listings from its platform.
