Spain's government is contemplating raising taxes on tourist rentals in high-demand areas.

Finance Minister María Jesús Montero has expressed openness to discussing the proposal, linking it to ongoing European negotiations on VAT regulations.

The left-wing party Sumar is pushing for a 21% VAT on tourist rentals, currently tax-exempt, to address housing affordability issues.

This comes as Spain faces a record number of vacation homes, with over 351,000 registered in February.

Major cities like Madrid, Barcelona, and Málaga are experiencing significant growth in short-term rentals, prompting concerns about their impact on local housing markets.

The government is also preparing measures to combat fraud in temporary rentals and considering special taxes on investment funds involved in tourist accommodations.