10% VAT on holiday lets: invoices, expenses and Modelo 303
From 1 December 2026, holiday-let stays of up to 30 nights carry 10% VAT. How Keyio prepares each stay's invoice, records the VAT on your expenses and works out each quarter for Modelo 303.
Which stays carry VAT
Royal Decree-law 29/2026 takes furnished lets of up to 30 nights per tenant out of the VAT exemption and taxes them at 10%, from 1 December 2026. It applies to individuals and companies alike.
A stay of more than 30 nights without hotel-type services stays exempt, as does a let in the home where you have your main residence. VAT does not apply in the Canary Islands, Ceuta or Melilla.
Keyio proposes 10% when a stay has 30 nights or fewer and ends on or after 1 December 2026. Keyio cannot know whether the home is your main residence, so check the proposal there. You can change the VAT on each invoice.
The decree has no transitional rule for bookings collected before 1 December for later stays. If that is your case, check with your adviser how to invoice them.
Before your first invoice
You have to be registered for VAT with the tax agency before your first taxable stay. It is done once, with Modelo 036. Keyio does not register you: the steps are in the app, in the notice on your dashboard and under Invoicing › VAT for the quarter.
Then create your issuer in Keyio with your tax ID and address, and assign it to your holiday let.
- 1File Modelo 036 in the tax agency's Sede, stating that you carry out VAT-taxable supplies, with an effective date before your first taxable stay.
- 2In Keyio, go to Invoicing and create your issuer.
- 3Open the home's Invoicing tab and assign the issuer to it.
Invoicing each stay
Create the invoice from the booking: Keyio fills in the lines and proposes the VAT from the stay's nights and dates, and tells you why (10%, over 30 nights, or ending before 1 December). Review it and issue it; the invoice gets its consecutive number and its PDF.
To invoice all the stays of a month in one go, use Invoicing › Invoice the month › Guest stays.
The VAT on your expenses
On a holiday let that invoices with VAT, the expense form asks for the tax base and the VAT of each invoice. When you upload or forward the invoice, Keyio reads them and you check them before saving.
Only VAT on invoices made out to you, with the VAT shown, can be deducted. If the same home also has exempt stays (over 30 nights, long lets), only part is deductible, by pro-rata.
Your quarter and Modelo 303
Invoicing › VAT for the quarter shows, per issuer and quarter, the VAT charged on your invoices (by the guest's check-out date), the VAT paid on your expenses, the estimated pro-rata when you also have exempt operations, and the result.
Below it, Keyio works out the boxes of Modelo 303 and the file to import in the tax agency's Sede. You file it, with your certificate or Cl@ve. If an earlier return left VAT to carry forward, enter it in box 110.
Keyio does not make the file when a pro-rata applies or a box comes out negative: take the boxes to your adviser in that case. The first quarter with VAT is the fourth of 2026 (December only), filed from 1 to 30 January 2027.
The commission Airbnb or Booking.com invoices from another EU country usually arrives without VAT: you self-assess it in Modelo 303. Keyio does not include it in its figures.
Keyio's figures are an estimate from your data. Check them with your adviser before filing. Keyio neither registers you with the tax agency nor files the return.
And your income tax report
VAT is neither income nor an expense for income tax. The tax report counts a stay less the VAT of its invoice, and an expense less the VAT you can deduct, and says so in a note.