Europe regulates short-term rentals via EU rules and national measures to curb housing shortages and economic concerns.
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The rapid growth of short-term rentals across Europe has caused social and political tensions, leading to regulatory responses from the EU and individual member states. The 2023 agreement between the European Parliament and the Council mandates several measures: mandatory registration for hosts, platform responsibility for verifying property data with potential fines for non-compliance, and the creation of a common digital interface for local authorities to monitor rental activities. This regulation is set to take effect on May 20, 2026.
In Hungary, short-term rentals have significantly reduced the long-term rental market in Budapest while keeping rents high; government measures include increased taxes and a moratorium on new listings in Budapest starting from 2025. Furthermore, local decisions, such as those in Terézváros in 2026, are banning short-term rentals due to local quality of life concerns.
Other countries are implementing various controls. Poland requires hosts earning over a certain threshold to register their business activities and plans to allow municipalities to create zones where new listings can only replace existing ones starting in 2029. Greece continues to see an increase in rental properties, with the government introducing minimum quality requirements for short-term rentals and imposing significant fines for violations. Athens has banned new short-term rental registrations in its central areas due to overcrowding. Spain is seeking a new VAT rule specifically for short-term rentals, proposing a 21% rate for stays under 30 days, amid concerns over housing shortages, particularly on the Canary and Balearic Islands.
