Global Regulatory Notes

Keep a pulse on global regulatory trends. Featuring critical updates and recent news on short-term rental policies around the world, we highlight key developments shaping the industry. 🌐

🏨 Italy

Italy has implemented a nationwide ban on self-check-in systems for short-term rentals, effective November 18. It targets platforms like Airbnb to enhance safety and community accountability.

The Ministry of Tourism' Circular 38138/2024 Hosts recontextualized Article 109 of the Consolidated Text of Public Safety Laws (TULPS), requiring to personally greet guests, verify their identities, and submit guest details to authorities within 24 hours, replacing automated systems such as lock boxes and keypads.

The regulation addresses concerns raised in cities like Rome and Milan, where protests have blamed short-term rentals for rising housing costs, community disruptions, and diminished safety. This move aligns with preparations for major events like the 2025 Jubilee in the Vatican and the 2026 Cortina Winter Olympics.

☃️ Calgary, Canada

Calgary City Council is set to vote on new short-term rental regulations designed to protect housing affordability and stability amid a tight rental market. Key proposals include banning licenses for non-primary residence rentals when vacancy rates fall below 2.5%, capping rental periods at 180 days annually, and prohibiting short-term rentals in affordable housing units.

Under the plan, platforms like Airbnb would face a $3,000 annual licensing fee, which suggests a new property tax subclass for non-primary residences. A University of Calgary study identified 4,950 active short-term rentals, comprising less than 1% of housing and showing minimal impact on affordability.

While advocates view the measures as a balanced way to address investor-driven rentals and housing shortages, critics argue the restrictions could hinder the market, reduce local jobs, and stifle Calgary’s tourism-driven rental growth. The council will deliberate on December 17.

☃️ Canada

Canada is launching a $50-million Short-Term Rental Enforcement Fund to address the housing crisis by regulating over 235,000 STR units listed on platforms like Airbnb and Vrbo. The fund will support enforcement staff, inspections, and complaint management, ensuring that STRs comply with rules requiring them to be primary residences. This initiative follows a recent Tax Court of Canada ruling reclassifying consistent STR properties as commercial, which subjects them to additional costs like sales tax, potentially deterring operators.

While Prime Minister Justin Trudeau and Housing Minister Sean Fraser argue that these measures will help alleviate housing shortages, critics warn that stricter regulations and rising compliance costs could reduce the availability of STRs and increase rental prices.

🏖️ Croatia

Croatia is moving forward with measures to address its housing affordability crisis by tightening regulations on short-term rentals. This includes raising taxes on secondary and tertiary homes, which comprise 10% of the country's housing stock. Primary residences will be exempt from these tax hikes.

The proposed laws aim to alleviate pressures caused by tourism, particularly in cities like Dubrovnik, where a ban on new rental permits has already been enacted. Supporters argue the measures will help revive communities affected by tourism, while critics, including property owners and rental agencies, warn of increased costs and market instability.

🏖️ Greece

Greece's Ministry of Tourism has proposed a draft law aimed at modernizing the tourism sector, focusing on sustainability and addressing challenges related to short-term rentals (STRs) and hotels.

The new framework requires STRs to meet stricter safety and hygiene standards, carry liability insurance, and undergo compliance checks similar to those for hotels. Seasonal taxes on STRs and hotels will rise significantly, generating an expected €400 million annually. STRs will face higher levies during peak tourist seasons, and new taxes will be introduced for cruise visitors.

In areas where STRs exceed 5% of housing stock, new permits will be frozen, and incentives will be offered for landlords transitioning to long-term leases. Hotels will also see tax increases based on star ratings, and sustainability rankings will be introduced for accommodations to align with environmental goals. Additional measures include the use of seawater in pools to conserve freshwater, expanded spa offerings, and improved housing for staff.

The draft law is open for public consultation until December 19, when Tourism professionals and other stakeholders are encouraged to submit their proposals and observations through their consultation portal here.

🏨 Lisbon, Portugal

The Portuguese Government has passed the decree-law 76/2024 which took effect at the beginning of November 2024. It re-allows municipal councils to make decisions and regulations on short-term regulations and licenses.

Seemingly working as an echo, Lisbon is moving toward a referendum that could significantly limit short-term rentals (STRs) in response to housing shortages and skyrocketing rents. With over 20,000 STR units, comprising about 8% of the city’s housing stock, locals argue that these rentals have driven up housing costs, with rents doubling and home prices tripling over the past decade. The referendum, potentially taking place in spring 2025, could ban STRs in residential buildings, compelling landlords to prioritize long-term housing. For now, the Constitutional Court is set to make and approve ballot questions.

🗼 Paris, France

Starting January 1, 2025, Paris will impose strict penalties for unlicensed STRs, with fines up to €100,000 for unregistered listings and penalties ranging from €10,000 to €20,000 for illegal rentals. The annual rental cap will also be reduced from 120 to 90 nights, with a €15,000 fine for violations. Hosts failing to remove illegal ads could face an additional €50,000 fines.

These measures are designed to alleviate housing issues and benefit small hotels, though critics argue they could raise accommodation costs and negatively impact families reliant on STR income. While Airbnb has downplayed the changes, which mirror similar global policies in cities like Barcelona and New York, the crackdown may shift tourism dynamics in Paris, potentially boosting boutique hotels and reviving local neighborhoods.

You may find the official announcement of this law using the link here.

🏨 Spain

Spain’s Royal Decree 933/2021, known as the "Big Brother" law, was enforced on December 2, despite widespread opposition from the travel industry and local lawmakers. The regulation mandates that travel agencies, hotels, and car rental companies collect and report extensive traveler data, including personal, family, and financial information, in the name of national security.

The law comes amid growing anti-tourism protests in cities like Barcelona and Málaga, where overcrowding, housing shortages, and environmental concerns are driving calls for tighter controls on short-term rentals and tourism in general.

Those who are interested in registering their property and accommodations may click here to get more information about the registration process.

🏖️ Catalonia, Spain

Catalonia's plan to phase out 10,000 holiday rental licenses in Barcelona over the next five years has led the European Holiday Home Association (EHHA) to file a legal complaint with the European Commission, arguing that the measures breach EU law. The restrictions, introduced to address Barcelona's housing crisis, have been criticized as disproportionate, particularly since the region has more empty homes than short-term rentals.

While Catalonia defends the regulations as necessary to combat over-tourism and rising housing costs, critics—including Airbnb—highlight that similar licensing bans since 2014 have failed to resolve the housing shortage. The European Commission has expressed concerns about the law’s impact on housing affordability and its compliance with EU directives, making this a significant case for the future of short-term rental regulation across Europe.

Emerging Global Trends 🌱

It appears that cities and countries are cracking down on STRs with stricter rules to tackle rising housing costs and tourism impacts. From rental caps and tougher licensing to pushing for more long-term housing, the focus is on balancing tourism benefits with community needs. Safety and accountability are also in the spotlight, with tighter oversight and new hosting requirements becoming the norm.

• Tougher Rules for Short-Term Rentals (STRs) 🏨: Around the world, cities and countries are cracking down on STRs. This is mainly because housing costs are rising and tourism is putting pressure on local communities. Expect stricter rules like limits on how many days you can rent out a place or requiring properties to be someone's main home.
• Impact on Housing 🏠: STRs are being blamed for making housing unaffordable in popular tourist cities. So, governments are taking action, limiting how much investors can profit from short-term rentals and pushing them to prioritize local residents.
• Global Coordination 🌐: Many countries are on the same page when it comes to cracking down on STRs. Spain, Canada, and Croatia are all working to tighten enforcement, increase taxes, and make sure property owners play by the rules.

This may have multiple effects on one's local and national housing market, mainly:

• Rising Costs for Operators 🏦: More rules mean more costs for people renting out properties. Whether it’s a licensing fee, safety requirements, or fines for non-compliance, it’s likely to get pricier to operate a short-term rental.
• Long-Term Rentals Could See a Boost 💸: With places like Greece and Croatia offering incentives for people to rent out homes long-term, more landlords might shift away from short-term rentals and offer their places to regular tenants instead.
• Uncertainty in the Market 👀: Ongoing legal battles (like in Catalonia) and shifting regulations could create some uncertainty in the housing market. Investors might hesitate, which could lead to fluctuations in property demand and prices.
• Less Pressure on Rent Prices 💥: In cities with housing shortages, like Paris and Barcelona, restricting STRs might free up more properties for long-term renters. That could help lower the pressure on rent prices and make housing more affordable.

Additional Resources

📁Analysis of Spanish Royal Decree 933/2021

📁Canada's Short-term Rental Enforcement Fund

📁Greek government set to increase daily taxes for STRs and hotels

📁Portugal New Short-Term Rental Regulations – Restriction Lift