If you’re planning a temporary stay in Barcelona, for work, relocation, or company visits, you’ve likely come across pricing that mentions “VAT not included” or “plus 21% IVA.” What does that mean exactly, and does it apply to you?
Here’s a clear and updated overview of how VAT (IVA) works for apartment rentals in Barcelona in 2025.
Who pays VAT on an apartment rental?
In Spain, VAT (IVA) depends on who is booking the apartment and the purpose of the stay:
- Private individuals renting an apartment for personal residential use, whether short- or long-term, are generally exempt from VAT (0%). This includes stays that are not linked to any business or professional activity.
- Companies or legal entities booking housing for employees or consultants are typically charged 21% VAT, as the rental is considered a taxable supply of services under Spanish law.
To add a layer of complexity: in Spain, there is also a separate category for tourism accommodations, which may be taxed at a reduced 10% VAT rate – but only when they include hotel-style services such as breakfast, daily cleaning, or reception.
However, bizFlats is not a touristic accommodation provider, and we don’t provide hotel-style services like daily cleaning or breakfast. Instead, we offer thoughtfully designed, fully equipped apartments tailored for professionals, remote workers, and companies seeking comfort, flexibility, and a more residential experience during their time in Barcelona.
What kind of rentals does bizFlats offer?
At bizFlats, we specialize in temporary housing in Barcelona, primarily short- and mid-term rentals for professionals, digital nomads, and companies. Our apartments are fully furnished and designed for work, comfort, and long stays.
We are not a hotel or tourism platform. Instead, our focus is on providing flexible, fully equipped apartments ideal for remote work, business relocation, and professional projects.
What’s changing in 2025?
Spain is currently reviewing legislation that could apply 21% VAT to all short-term rentals under 30 days, regardless of whether the rental is for business or personal use. The aim is to regulate the short-term rental market more tightly, particularly in urban areas like Barcelona.
However, as of June 2025, this proposal has not yet been passed, and the existing VAT rules continue to apply. We’re keeping a close eye on developments and will notify clients of any changes that affect bookings.
Can companies be exempt from VAT?
While companies are typically charged 21% VAT on short- or mid-term stays for employees or contractors, there are specific cases where the rental can be VAT exempt, but only if strict legal criteria are met:
- The contract must be signed by a representative of the company (not the employee)
- The use of the property must be strictly residential, with no commercial or office activity
- The rental must not include additional services (e.g., daily cleaning, breakfast, etc.)
- The specific employee(s) who will reside in the apartment must be named on the contract. They must be employed by the company, rather than outside contractors.
Only when all of these conditions are fulfilled can the VAT be exempted and not charged at all.
Why does this matter?
- Exemption = VAT is not charged at the time of booking (when eligible)
- Deduction = VAT is charged at 21%, but can be reclaimed by eligible companies through tax filings
In most cases, VAT will be applied, and eligible businesses can reclaim it via their accountant or finance team.
What to expect when booking with bizFlats
We keep it simple and transparent:
- VAT is clearly indicated before booking if it applies to your stay
- Every client receives a proper invoice, whether you’re booking as a company or individual
- If you’re unsure whether VAT applies to your booking, reach out to our team and we will be happy to help clarify your case
Ready to book your stay?
Whether you’re relocating, managing a team, or working remotely in Barcelona, bizFlats offers flexible, high-comfort apartments with full pricing transparency and no surprises. Check availability and explore your options on our apartments page, and feel free to reach out if you have any questions about your booking.
