Keep the holiday licence or switch to seasonal letting?
The VAT reform does not arrive alone: RDL 26/2026 also deeply amends the Urban Leases Act (LAU, Law 29/1994) to order seasonal and room letting and stop it being used to avoid residential leasing. That opens a strategic question for many owners: keep the holiday licence, or convert to seasonal letting?
The new boundary: 31 days
The law provides that temporary tourist cession, subject to sectoral rules, may not exceed 31 days. Above that duration, to a single tenant and with no hotel services, it is no longer a holiday let but a seasonal lease governed by the LAU.
Why seasonal dodges the worst
A genuine seasonal let to a single tenant exceeding 30 nights, with no hotel services, sits outside the 10% VAT (the 30-night trigger is not met) and, being non-tourist in nature, can fall outside the tourist IBI surcharge. Residential letting also keeps the income-tax reductions the holiday let loses. For digital nomads, winter visitors and posted professionals, it is a real market.
The transitional regime
The decree-law adds a new transitional provision to the LAU governing seasonal or temporary-dwelling contracts signed before it took effect. If you already run seasonal contracts, review how the new framework affects them.
What to weigh before converting
- Yield: a prime-location flat may still earn more as a holiday let even with VAT and IBI; a patchy-occupancy one often will not.
- Flexibility and admin: seasonal is administratively lighter (no VAT), but with less turnover.
- Compliance: the contract must reflect reality; splitting or disguising short stays as "seasonal" invites the authority to look at substance.
There is no single answer: it depends on location, season, number of properties and your appetite for admin. It deserves a flat-by-flat comparison.
📄 Read the official text
Royal Decree-Law 26/2026 of 29 September (Spanish Official Gazette BOE no. 241, 30 September 2026). Read the full text as published: official version on boe.es · download PDF.
Compare holiday let vs seasonal for your case
Disclaimer: general information as of 2026 reflecting Royal Decree-Law 26/2026 as published; not individualised tax or legal advice. Rules and implementing measures may change; check your case before acting.