What VAT applies to a hotel night or holiday rental? Spain, Portugal, Italy and Greece (2026)

Updated: 9 November 2026

The VAT on a night's stay depends on the country, the type of property and the services you provide. A hotel almost always charges a reduced rate. A holiday rental may or may not charge VAT. This is what we checked in each country's official gazettes and tax authority websites (links at the end). This is not tax advice: where we could not confirm something we say so, and you should check it with your accountant.

Spain: 10% for hotels, and holiday-rental cases

The Spanish VAT Act 37/1992 sets a standard rate of 21% (art. 90) and 10% for hotel, campsite and spa services, restaurants and food and drink for consumption on the spot (art. 91.Uno.2.2.º).

Hotel, guesthouse or tourist apartment with hotel services: 10% on the night. Breakfast is also 10%.
Holiday rental without hotel services: until 30-11-2026 the rental is VAT-exempt (art. 20.Uno.23.º). According to the tax agency (AEAT), it is then subject to transfer tax (ITP) instead.
What the AEAT counts as hotel services: continuous reception, periodic cleaning during the stay, periodic change of bed and bath linen, and sometimes meals. If you provide any of them, the rental is taxed at 10%.
What does not count: cleaning and linen change at check-in and check-out, cleaning of common areas, and maintenance or repairs.
From 1-12-2026: Royal Decree-Law 29/2026 (BOE of 7-10-2026) removes the exemption for furnished homes let to the same guest for 30 nights or fewer, unless it is your main home. They are taxed at 10%, even without hotel services.
Note: an earlier decree with similar measures (RDL 26/2026) was repealed on 2-10-2026. Parliament is dissolved (general election on 29-11-2026), so RDL 29/2026 goes to the Standing Committee of the Congress; press reports put the vote on 12-11-2026. Until then it is not validated: check with your accountant before December.
This guide does not cover the Canary Islands, Ceuta or Melilla, which have their own taxes.

Portugal: 6% on accommodation

Accommodation is taxed at the reduced rate under List I, item 2.17, of the Portuguese VAT Code. The reduced rate is 6% on the mainland. Azores and Madeira rates: we have not confirmed them.
The reduced rate applies only to the accommodation price, including breakfast if it is not invoiced separately. Other extras have their own rate.
Local accommodation (alojamento local): the tax authority treats it as an accommodation service at 6% (binding ruling 25769, 2024).
Small business exemption (art. 53, as worded by Decree-Law 35/2025): if your turnover in Portugal in the previous year did not exceed EUR 15,000, you may not have to charge VAT. You lose the right to deduct VAT on your costs. Ask your accountant whether it suits you and when you leave the scheme.

Italy: 10% for hotels; no VAT on private short lets

Hotels and other accommodation facilities: 10% (DPR 633/1972, Table A, Part III, no. 120), also for closely related services such as cleaning. The standard rate is 22%.
Short lets (locazione breve): according to the Italian Revenue Agency guide, these are lets of up to 30 days between private individuals outside a business activity, with linen and cleaning allowed. With no business, there is no VAT on the bill.
If you offer more services (for example breakfast), the activity may count as a business, and then VAT applies.
How many flats trigger the presumption of a business in 2026: we have not confirmed this in an official source; ask your accountant.

Greece: 13%; no VAT up to 2 properties

Hotels and holiday accommodation: 13% (Annex III of the Greek VAT Code, Law 5144/2024, Part B, point 5). We found no change to this rate in 2024-2026.
Short-term rentals since 1-1-2024: an individual with up to 2 properties (2 AMA numbers) is VAT-exempt.
With 3 or more AMA numbers it is a business activity and all properties carry 13% VAT. Registered AMA numbers count, even if one earned no income.
A company always charges 13%, however many properties it has.
If you provide services beyond bed linen, AADE treats it as tourist accommodation, with business registration.
The climate resilience fee is not subject to VAT. The visitor fee (τέλος παρεπιδημούντων), where it applies, is part of the 13% VAT base.
The 30% reduction on some islands: the official text refers to goods; we have not confirmed it applies to accommodation.

How to show the price

Directive 2011/83 (art. 6(1)(e)) requires traders to tell consumers the total price inclusive of taxes before the contract. Directive 98/6 defines the selling price of products as the final price including VAT and all other taxes.

Always show the nightly price and the total for the stay with VAT included.
Do not advertise a price 'plus VAT' to consumers.
If a tourist tax is paid separately at the property, say so clearly next to the price.
If VAT changes (for example in Spain from 1-12-2026), also update rates already published for those dates.

10-minute check

List the services you provide during the stay: cleaning, linen change, reception, breakfast.
Check which rate you charge today and whether it matches the above.
In Spain, review your stays of 30 nights or fewer from 1-12-2026 with your accountant.
In Greece, count your AMA numbers; in Portugal, your turnover last year.
Check your website and channels show the final price with VAT.

How iQuota helps

iQuota does not give tax advice and does not charge the guest: payment is made at the property and you issue the invoice. We publish your property in AI assistants with your final prices, so guests see what they will pay.

Want an official booking page AI can read and a connector with your real prices, commission-free? The first 30 hotels join free until 30 June 2027.

See the Founding Hotels programme

Frequently asked questions

What VAT applies to a hotel night in Spain?

10% (art. 91.Uno.2.2.º of Law 37/1992). Breakfast is also 10%.

Does my holiday rental in Spain charge VAT?

Until 30-11-2026, only if you provide hotel services (periodic cleaning, linen change during the stay, reception, meals). From 1-12-2026, under RDL 29/2026, also stays of 30 nights or fewer. In both cases at 10%.

From how many properties does VAT apply in Greece?

From 3 AMA numbers for individuals, and then on all of them at 13%. Companies always.

Sources

More guides for hotels

More guides for hotels →

Español · Italiano · Português · Ελληνικά