Global Regulatory Notes (20)
Keep a pulse on global regulatory trends. British Columbia review proposed legislation; Lake of Bays, ON approves Municipal Accommodation Tax; European Union prepares new rules; Palma, Spain bans registration; Scotland discusses visitor levy scheme; Greece; Cyprus; Kyoto, Japan. READ MORE.
Canada
British Columbia
British Columbia is moving to give its short-term rental laws more bite with proposed legislation that would make compliance orders and penalties public.
Introduced by Housing Minister Christine Boyle, the bill strengthens enforcement under the Short-Term Rental Accommodation Act while requiring cities to support small-scale housing growth. The province says these changes will standardize housing policy and boost availability, but local governments are pushing back.
Lake of Bays Township, Ontario, Canada
Starting January 1, 2026, visitors staying in short-term rentals and other accommodations in Lake of Bays will pay a new 4% Municipal Accommodation Tax, approved by council this week.
The by-law brings the township in line with nearby Muskoka communities and aims to reinvest tourism dollars locally. Half of the funds will be directed to a newly formed Destination Marketing Organization made up of local accommodation providers, while the township will retain the other half for recreation and community-based tourism projects.
European Union
The European Commission is preparing to introduce new rules on short-term rentals like Airbnb and Booking.com as part of a wider effort to tackle Europe’s growing housing crisis.
Dan Jørgensen, the EU’s first-ever Housing Commissioner, says the reforms will form part of a broader affordable housing plan now set for release in December—two years earlier than planned. He calls short-term rentals a “huge problem” for many cities, contributing to rising rents and displacement, and argues that Brussels must step in where national measures have failed. While details remain limited, the EU’s proposal is expected to address how platforms operate across borders and how housing supply can be protected from speculative and tourist-driven pressures.
Palma, Spain
Palma is taking a bold step to curb overtourism and housing strain by banning all new short-term tourist rental registrations.
Only the 639 existing licensed rentals will remain operational, with no replacements allowed once a property leaves the market — effectively freezing growth in the city’s tourist accommodation sector. The move follows a 17.4% year-over-year drop in available rentals. Alongside the rental freeze, Palma plans to restrict party boats and reconfigure hostels to reduce their impact, while investing in measures that extend the tourism season and ease pressure on residents.
Scotland
Stirling Council’s proposal for a 5% visitor levy on overnight accommodation is facing pushback from the Federation of Small Businesses (FSB), which is urging the council to pause or drop the plan until the Scottish Government clarifies key parts of the Visitor Levy (Scotland) Act 2024.
Scotland's Visitor Levy Scheme
The council is consulting on a draft scheme that would apply the charge across all paid accommodation, including hotels, guesthouses, and short-term lets from June 2027. FSB argues that uncertainty over whether councils can set a flat-rate or percentage fee has created confusion among operators and could harm small accommodation providers already struggling to interpret new tax rules. With several councils already delaying their own visitor levy plans, the FSB says Stirling should learn from early experiences in Edinburgh and Glasgow, where the first levies are due in 2024 and 2027 respectively.
Greece
Greece may soon tighten its short-term rental framework as the government confronts a worsening housing crisis.
Authorities are studying how European cities like Paris, Lisbon, and Barcelona have curbed short-term rentals through limits, taxes, and permit restrictions. Finance Minister Kyriakos Pierrakakis says Greece is considering similar measures—including potential caps on listings and changes to how hosts are taxed—to ease pressure on urban housing markets. Though discussions are ongoing, officials say they’re prepared to act quickly if housing supply continues to shrink.
Cyprus
Cyprus is updating its short-term rental rules to match new EU-wide standards for transparency and data sharing.
Lawmakers have unanimously approved amendments requiring hosts to display registration numbers on listings and platforms like Airbnb to share key information with public authorities. The law, which takes effect May 20, 2026, will give regulators better oversight, improve guest safety, and support more informed tourism planning. It also introduces fines for non-compliance and ensures travellers can more easily identify legitimate rentals.
Kyoto, Japan
Kyoto will implement a new tourism tax—the highest in Japan—beginning March 1, 2026, applying to all paid accommodations including short-term rentals.
The tiered levy, ranging from 200 to 10,000 yen per night, aims to tackle overtourism by funding preservation and city improvements. Revenue will support infrastructure upgrades, cultural site maintenance, and neighborhood revitalization projects that balance visitor growth with resident quality of life. City leaders say the approach reflects Kyoto’s shift toward sustainable, high-value tourism, ensuring that visitors help maintain the cultural and environmental integrity that defines Japan’s historic capital.
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