Global Regulatory Notes (13)

Canada

Penetanguishene, Ontario

Penetanguishene’s council is set to consider updates to its short-term rental bylaw during Wednesday’s regular meeting as part of broader bylaw amendments tied to the town’s administrative monetary penalty system.

The revisions aim to align enforcement tools with both existing STR rules and upcoming automated speed enforcement measures. While details of the proposed STR-related changes weren’t specified in the meeting notice, the bylaw update suggests the town is looking to bolster its ability to regulate and fine violations more efficiently.

Short Term Rentals - Town of Penetanguishene

The official website for the Town of Penetanguishene, Ontario.

Town of Penetanguishene

Burlington, Ontario

Burlington, Ontario has secured a two-year, $759,719 federal grant to bolster enforcement of its new short-term accommodation bylaw, which took effect May 1.

The city will use the funding—part of Canada’s Short-Term Rental Enforcement Fund—to hire new bylaw officers dedicated to ensuring compliance with its rules, which limit STRs to primary residences rented for no more than 28 consecutive days and 183 days per year. While uptake has been gradual, with most prospective operators still in the inquiry phase, the city plans to shift from education to enforcement this fall. A $300 licensing fee is expected to offset administrative costs, but not enforcement, which now receives crucial federal backing.

Short-Term Accommodations Licence

A “short-term accommodation” typically describes a rental property that is rented out over a short period of time (i.e. less than 29 consecutive days) for a fee. Platforms such as Airbnb and VRBO offer a service where individuals can advertise and book

City of Burlington Logo

Port Colborne, Ontario

Port Colborne city council is finalizing a new short-term rental bylaw set for approval on September 9, aiming to regulate guest limits, parking, and waste management.

Short-Term Rentals

Port Colborne Logo

In the meantime, council unanimously approved hiring a dedicated bylaw enforcement officer to respond to STR complaints this summer. The bylaw is expected to include a licensing framework, with fees ranging from $900 to $2,000 depending on the complexity of the unit. Additional measures will also be introduced to expand after-hours enforcement, especially during weekends.

Spain

Barcelona

Barcelona is intensifying its regulatory pressure on Airbnb with a new proposal that mandates illegal STR listings be removed within 48 hours and prohibits them from resurfacing.

The city’s plan includes monthly data sharing of host and property details, mandatory proof of ownership, license verification, and a ban on listings without Spain’s new centralized registry ID. The proposal also calls for a joint oversight committee with veto power from the city, and improved takedown processes that don’t require routing through Airbnb’s Ireland office. Officials stressed that the terms are not open to negotiation, warning that legal action will follow if Airbnb does not comply within two weeks.

Costa Rica

Costa Rica’s General Directorate of Taxation has announced a new 12.75% tax on rental income from platforms like Airbnb and Booking.com, to be enforced by the end of 2026.

The government will use international data-sharing agreements to identify hosts and ensure compliance, warning that non-registered operators could face fines. This move is part of a broader effort to integrate short-term rentals into the country’s formal economy and digital tax system, which already includes VAT collection by Airbnb. Officials are urging hosts to regularize their status now to avoid future enforcement issues.

Puerto Rico

Airbnb’s latest figures show that short-term rental activity in Puerto Rico is increasingly fueled by occasional hosts, who now make up 30% of all listings on the island—a 10% increase from last year.

These part-time operators, often renting for fewer than 120 days annually, are using the platform to generate supplemental income amid economic uncertainty. The company highlighted that domestic travel continues to grow, with bookings from Puerto Rico residents accounting for nearly one-third of all activity in 2024. Airbnb emphasized its support for mandatory registration and fair regulation, reaffirming its partnership with the Puerto Rico Tourism Company as officials continue to weigh policy responses to short-term rental growth.

Malta

Malta’s Green Party, ADPD, is calling for stronger local control over short-term rentals, proposing that permits should only be issued with explicit consent from local councils.

Criticizing the current system where the Malta Tourism Authority unilaterally regulates STRs, party leaders argued that councils and residents are best positioned to assess the impact of tourist accommodations in their communities. They pointed to Swieqi as a cautionary example—once a village of two-storey homes, now overtaken by apartment blocks catering largely to tourists. The party also advocated for increased eco-contribution taxes and redirected revenue to help local councils cope with the effects of surging tourism. While the government is aiming for 4.5 million tourist arrivals by 2035, ADPD warned that the growth in STRs is pricing locals out and changing the identity of neighborhoods, all while offering diminishing job opportunities for Maltese residents.

Mexico

Protests are escalating in Mexico City as residents in Condesa and Roma demand stronger regulations on short-term rentals amid rising rents and displacement concerns.

Organized by the Mexico City Anti-Gentrification Front, demonstrators blame platforms like Airbnb for inflating housing costs and reshaping local neighborhoods to cater to tourists and digital nomads.

In response, the city proposed new rules in 2024 to cap licenses for short-term rentals in residential areas, but legal challenges have delayed implementation. Local councils are also calling for tighter zoning enforcement and improved oversight of rental platforms. While tourism continues to drive economic activity, residents warn that the city’s current model is pushing locals out of their own communities.

Greece

Greece’s Independent Authority for Public Revenue (AADE) has published a detailed guide clarifying what counts as a short-term rental and how to comply with the country’s tightening regulations.

Rentals under 60 days—regardless of platform use—are officially defined as short-term lets, provided they offer no more than bed linens. Anything more, and it’s considered a hotel. Owners and property managers must register each unit in the national STR database, display their registration number, and comply with strict letting limits—90 days per year on the mainland and 60 days on islands with fewer than 10,000 residents.

Those managing three or more properties must charge VAT, and steep fines await those who fail to register or follow rules, including penalties of up to 50% of gross annual revenue.

In other news, Greece is poised to extend its ban on new short-term rental registrations in central Athens through 2026, as housing pressures continue to mount.

Originally set to expire at the end of 2025, the restriction—covering core neighborhoods like Plaka, Exarcheia, and Pagrati—prevents any new listings from being added to the national Short-Term Rental Registry in the city’s first three municipal districts. Despite the moratorium, short-term rental activity continues to surge, with over 1 million Airbnb-style beds now surpassing hotel capacity nationwide.

🌐 Emerging Global Trends

As short-term rentals continue to reshape housing markets and tourism economies, governments around the world are responding with sharper enforcement, tailored regulations, and tighter financial oversight. The following trends highlight how cities and countries are adapting their approaches to keep pace with the evolving STR landscape.

🌇 Cities Are Scaling Up Enforcement with Dedicated Officers and Tech-Backed Systems: Across Ontario, municipalities are moving beyond bylaw creation to implementation by investing in dedicated STR enforcement. Burlington secured nearly $760,000 in federal funds to hire officers solely focused on compliance, while Port Colborne is adding after-hours staffing to address complaints during peak tourism months. Meanwhile, Penetanguishene is modernizing its administrative penalty system to streamline fines for STR infractions. Globally, enforcement is tightening too with Barcelona demanding faster STR takedowns and data-sharing from platforms, and Greece issuing steep fines for unregistered hosts.

🧷 STR Regulations Are Becoming More Tailored and Location-Specific: Governments are increasingly customizing STR rules based on local conditions. Port Colborne is preparing rules on guest limits, parking, and garbage, while Burlington restricts STRs to primary residences for fewer than 183 days per year. Greece has different duration thresholds based on geography (mainland vs. island), and Malta’s Green Party is calling for STR permits to require municipal approval to reflect local community dynamics. This hyper-localized approach signals a growing awareness that blanket policies can miss the mark, and that zoning, infrastructure capacity, and housing needs vary by neighborhood, city, or island.

🧮 Financial Accountability and Tax Integration Are Central to STR Policy Shifts: Short-term rental regulation is being woven into broader financial and tax systems. Costa Rica is rolling out a 12.75% tax on rental income, complementing VAT mechanisms already in place, while Greece mandates VAT for managers of three or more properties. Burlington is using licensing fees to partially fund administration, and Penetanguishene is revising its monetary penalty system to better collect fines. These developments reflect a global trend to formalize STR activity as part of the local and national economy—ensuring not just regulatory compliance but also fiscal contribution through taxes, fees, and transparent host registration.

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