Spain launches another tax raid on British holidaymakers
Are you a holiday let owner affected by the Spanish government's new tax? Get in touch money@telegraph.co.uk
Spain's socialist government is planning a tax raid on British holiday let-owners in the country.
The ruling Spanish Socialist Workers' Party wants to charge 21pc VAT on stays of less than 30 days – more than double the rate paid by hotels.
It comes as Madrid lawmakers take aim at foreign property investors as part of efforts to tackle high housing costs.
Draft legislation put before the Spanish parliament would raise taxes on owners of short-term tourist rentals from the current rate of zero. The levy rate paid by hotels is just 10pc.
Unveiling the new bill last month, housing minister Isabel Rodriguez said: 'Homes are for living in [...] the measures seek to guarantee the right to rental housing for families.'
The proposed change is part of the same legal push to impose a 100pc purchase tax on the sale of Spanish property to non-European Union buyers and also includes higher taxes for second homes and vacant properties.
Alex Radford, partner at Spain-based law firm English Solicitor & Abogado, said: 'The VAT has got more chance of being implemented than the 100pc tax on a property bought by a non-European.'
He said that if approved, the bill would likely increase the cost of holidays and lead to fewer available holiday lets in Spain.
'We would envisage that the rental [market] is going to be slightly more expensive. If owners have to add 21pc VAT to the cost of a rental, then we would expect rentals to decrease and people will look at other countries.'
'It's still early days and we don't know what will get approved and what will not,' Mr Radford added.
Millions of Britons who visit and live in Spain face losing out because of the new laws, which will undergo scrutiny and potentially amendment before being voted on in the second half of this year.
There were more than 260,000 British expats living in Spain at the last official count in 2020, while it received 1.6 million tourists from the UK – more than any other country – during the busy April period last year, according to the Spanish statistics agency.
Robert Amsterdam, partner Amsterdam & Associates, a law firm that has campaigned against higher Spanish taxes, said: 'The Spanish government is diverting the attention of the Spanish people away from the government's behaviour and they're coming up with the British as enemy number one.'
Most estimates place the number of British people who own property in Spain between 800,000 and one million. A figure for the number of British holiday let-owners in the country was not available.
British non-residents bought 3,480 homes in Spain in the first half of 2024, making up 38pc of a total of 9,166 properties sold to non-resident non-EU buyers, according to the latest available figures from the General Council of Spanish Notaries and Spanish Property Insight.
Growing anti-tourist sentiment in Spain has already seen cities like Malaga and Madrid capping new licences for holiday lets, while Barcelona will ban them completely by 2028.
Spanish media reported in January that Barcelona's plans would cost €1.9bn (£1.6bn) and lose the city around 40,000 jobs, based on a report by consultancy PWC.
The country's minority coalition government has defended a crackdown on foreign property investors and holiday let-owners as necessary to make more housing available for Spanish people.
There is a deficit of 450,000 homes across Spain, according to a Bank of Spain report published this week. In popular tourist destinations like the Canary and Balearic Islands half the housing stock is either holiday lets for tourists or homes owned by foreigners, it said.
Javier Peñate, a legal adviser to a holiday homeowners association in the Canary Islands, told Reuters: 'The sole objective is to put an end to these activities and leave [tourism] in the hands of hoteliers.' Short-term rentals in the province already pay 7pc VAT, as do hotels.
Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
33 minutes ago
- Yahoo
Aussie pilot captures extraordinary moment during record-breaking event : 'Amazing scenes
An Australian pilot has captured an extraordinary moment in nature from above, showing "a serpent" formation emerge beneath the surface of a lake, formed by Pelicans chasing fish. "Amazing scenes from Kati Thanda-Lake Eyre, a serpent appears on the surface, formed by Pelicans chasing fish along the Warburton Creek, before it enters the lake," the Arid Air tour group wrote in a post online this week. The stunning shot, captured by Senior Pilot Tekin, was taken during a scenic flight "when the first of the pelicans arrived" around the inlet. Located in South Australia's arid heart, Lake Eyre is the lowest natural point on the Australian continent. Most of the time, it's a white salt flat. But when enough water reaches it, fed by distant rivers like Cooper Creek, the Diamantina, and Georgina, the basin transforms into Australia's largest lake, drawing birds, wildlife and awe-struck visitors. Kati Thanda–Lake Eyre is filling for just the fourth time in the past 160 years. This year's flood is the result of a record-breaking convergence of rainfall across all three of the Lake Eyre Basin's major catchments — something not seen since 2010–11, and possibly longer. "All three of them have been concurrently in a record-breaking flood," Talia, an SA-based outback pilot, previously told Yahoo News. "It's just such a rare sight, only the people who book these air tours can see it. It's an extremely remote area of extremely dry conditions. "They call it a 'dry flood' because there's been no local rainfall in that area at all... so to see this lifeblood of water descending, trickling through the desert and knowing what it's going to leave behind — the greenery along the floodplain — it's just a once-in-a-lifetime, spectacular opportunity. "You feel very privileged to see the rare sight that it is." South Australia's Department of Environment reported last month that 600 to 1000 gigalitres of water are flowing into Kati Thanda-Lake Eyre in South Australia from western Queensland, after a 2,000 kilometre band of rain swept across the country in March. The deluge saw parts of the Queensland outback go underwater, with residents cut off for weeks. Now the water is spilling into Kati Thanda-Lake Eyre, which has only filled to capacity three times in the past 160 years. Rush to see rare Aussie phenomenon sparks warning Phenomenon not seen in 50 years set to create 'inland sea' Tourists face ban at iconic attraction over 'sacred' nature The full inundation is expected to breathe life back into the salt lake's crust, its wildlife, and the surrounding vegetation. As floodwaters arrive, they trigger a remarkable transformation — rare and dormant species burst into life, and others are drawn to the lake in spectacular numbers. Speaking to Yahoo News on Friday, an SA National Parks and Wildlife Service spokesperson said the best way to see Kati Thanda-Lake Eyre "and the hundreds of species of birdlife that it attracts", is from the air. "But visitors can witness the spectacle of the lake from dedicated viewing points within Kati Thanda-Lake Eyre National Park," they said. "The new management plan for the park, which was introduced in February this year, restricts recreational access to the lakebed, including visitors entering the lakebed on foot. All other recreational activities, including swimming, driving, boating and landing aircraft, are already restricted under the National Parks and Wildlife Act 1972." Love Australia's weird and wonderful environment? 🐊🦘😳 Get our new newsletter showcasing the week's best stories.
Yahoo
an hour ago
- Yahoo
Trump considers extending TikTok deadline. Is third time a charm?
Will the third time be the charm for TikTok's future? With another extension deadline in two weeks, the social media platform's future lies in the hands of President Donald Trump. In January, TikTok went dark for 12 hours in the United States when China-based ByteDance failed to divest the app's U.S. assets, as required by law. Since coming into office on Jan. 20, Trump issued two executive orders to extend the ban's deadline, hoping to acquire the short-form video app used by 170 million Americans. But so far, a deal has yet to be struck. The next deadline is June 19. A plan had been in the works that would spin off TikTok's American operation into a new firm owned and operated by U.S. investors, but was put on hold, according to Reuters, after China would not approve it following Trump's announcements of steep tariffs on its goods. During an NBC News interview in May, Trump said he would extend the deadline a third time if a deal isn't made by the June 19 deadline. 'I'd like to see it done,' Trump said during the interview. The president added that he has a 'little sweet spot' in his heart for TikTok, which he claims helped him win votes during the 2024 presidential election. 'It'll be protected. It'll be very strongly protected. But if it needs an extension, I would be willing to give it an extension.' The White House declined to comment about a potential TikTok sale. It is unclear. If ByteDance does not divest TikTok by Thursday, June 19, the platform could be banned in the United States again. However, Trump has said that if the sale isn't finalized in time, he will extend the deadline again. This, too, is unclear. Under federal legislation that put the TikTok ban in place, the president can implement a 90-day extension on the deadline to sell. But Trump didn't take this route in January or April. Instead, he signed executive orders delaying the ban by 75 days. If Trump wishes to sign another executive order ahead of the June 19 deadline, he can. While it's within Trump's discretion to sign executive orders to delay the ban, there may be a time when Congress sees it fit to pass a law ordering a firm deadline, John Acevedo, Emory University School of Law professor, told Spectrum News in April. But just because the executive orders are within Trump's authority doesn't mean everyone is happy with his decisions. 'The deadline for Trump to follow the law passed 135 days ago. It is shocking that a bipartisan-backed law, signed by the former president and upheld by the Supreme Court, is being treated like a mere suggestion by the White House,' said Stephen Kent, Consumer Choice Center media director, in a news release. Former President Joe Biden signed federal legislation in 2024 that gave ByteDance until Jan. 19, 2025 to divest TikTok or face a ban in the U.S. Some politicians see TikTok as a national security threat, expressing concern that ByteDance may be sharing U.S. user data with the Chinese government. ByteDance has denied these claims, which remain unsubstantiated. However, ByteDance did not divest in time. In January, TikTok went dark for a little more than 12 hours in the U.S. after the app was effectively banned. U.S. internet hosting services made TikTok unavailable to access, and app stores removed the app for download. During the short-lived shutdown, Trump promised internet hosting services and app stores that they could restore TikTok and not face legal penalties. Under the federal legislation, companies could be fined $5,000 per user they help access TikTok. For companies like Google and Apple, this could mean a $5,000 fine for each user who downloads or updates TikTok. Internet hosting services like Oracle didn't waste time rebooting the app, but it wasn't until Feb. 13 that TikTok became available again in the Apple App Store and Google Play Store. Greta Cross is a national trending reporter at USA TODAY. Story idea? Email her at gcross@ This article originally appeared on USA TODAY: Trump to decide Tiktok's fate no later than June 19
Yahoo
an hour ago
- Yahoo
Is TikTok getting banned? Trump says he'll 'probably' extend deadline again
President Donald Trump said on Tuesday that he will "probably" extend the TikTok ban deadline yet again before its expiration on Thursday, June 19. "We probably have to get China approval. I think we'll get it," Trump told reporters aboard Air Force One on Tuesday, June 17. "I think (Chinese) President Xi will ultimately approve it." TikTok, a short-form video app, went dark for about 12 hours in January when China-based ByteDance failed to divest the app's U.S. assets, as required by federal law. Since coming into office on Jan. 20, Trump has issued two executive orders to extend the ban's deadline. But so far, a deal has yet to be struck, and the next deadline is Thursday, June 19. When asked by reporters if he has the legal basis to extend the deadline again, Trump said, "Yes, I do." If ByteDance does not divest TikTok by Thursday, June 19, the platform could be banned in the U.S. again. However, Trump has repeatedly signaled he would extend the deadline if the sale isn't finalized in time. Under federal legislation that put the TikTok ban in place, the president can implement a 90-day extension on the deadline to sell. But Trump didn't take this route in January or April. Instead, he signed executive orders delaying the ban by 75 days. If Trump wishes to sign another executive order ahead of the June 19 deadline, he can. Former President Joe Biden signed federal legislation in 2024 that gave ByteDance until Jan. 19, 2025 to divest TikTok or face a ban in the U.S. Some politicians see TikTok as a national security threat, expressing concern that ByteDance may be sharing U.S. user data with the Chinese government. ByteDance has denied these claims, which remain unsubstantiated. However, ByteDance did not divest in time. In January, TikTok went dark for a little more than 12 hours in the U.S. after the app was effectively banned. U.S. internet hosting services made TikTok unavailable to access, and app stores removed the app for download. During the short-lived shutdown, Trump promised internet hosting services and app stores that they could restore TikTok and not face legal penalties. Under the federal legislation, companies could be fined $5,000 per user they help access TikTok. For companies like Google and Apple, this could mean a $5,000 fine for each user who downloads or updates TikTok. It wasn't until Feb. 13 that TikTok became available again in the Apple App Store and Google Play Store. This story will be updated. Greta Cross is a national trending reporter at USA TODAY. Story idea? Email her at gcross@ This article originally appeared on USA TODAY: TikTok ban: Trump says he'll 'probably' extend deadline again
