Why is Airbnb claiming Spain’s new rental rules will fuel overtourism?

New Rules for Airbnb Hosts in Amsterdam: A Glimpse into the Future of Short-Term Rentals

In 2022, Amsterdam introduced new regulations for Airbnb hosts, marking a significant shift in how the city manages short-term rentals. These rules were designed to address concerns over housing shortages, overtourism, and the impact of platforms like Airbnb on local communities. The regulations require hosts to register their properties and obtain permits before listing them on platforms. Additionally, hosts must collect sensitive guest information, such as bank details and personal identifiers. The new rules also increase VAT on short-term rentals to match the 10% rate paid by hotels. While the regulations went into effect in January, full enforcement will begin on 1 July, with potential fines of up to €600,000 for non-compliance. These changes reflect a broader trend in Europe, where cities like Barcelona, Madrid, and Amsterdam are grappling with the challenges posed by short-term rentals.

Spain’s Clampdown on Short-Term Rentals: A Response to Housing Crises and Overtourism

Spain has implemented strict new regulations on short-term rentals, effective as of 2 January. The regulations require property owners to register in a national database and obtain permits before renting out their properties on platforms like Airbnb. The Spanish government has also proposed raising VAT on short-term rentals to align with the 10% tax paid by hotels. These measures are part of a broader effort to address Spain’s housing crisis, which officials argue is exacerbated by platforms like Airbnb. Prime Minister Pedro Sánchez has been vocal about the issue, stating that housing should take priority over tourist use. He noted that non-EU buyers, including those from the UK, purchased approximately 27,000 properties in Spain in 2023, not to live in but to rent out for profit. Sánchez warned that these practices are unsustainable given the country’s housing scarcity. Spain is also considering a 100% tax on property purchases for non-EU buyers.

Protests and the Impact of Overtourism: A Growing Concern in Spain

The new regulations in Spain are also a response to growing protests against overtourism. In 2024, anti-tourism demonstrations erupted in popular destinations across the country, with more protests expected in 2025. Despite these challenges, Spain saw a 10% increase in visitors in 2024, with 94 million foreign tourists visiting the country, according to Tourism Minister Jordi Hereu. Overtourism has put pressure on local infrastructure and housing, leading to calls for stricter controls on short-term rentals. The regulations aim to curb the number of properties being used for tourism and to encourage longer-term rentals for residents. However, the new rules have created confusion and uncertainty among property owners, who must navigate a complex web of municipal, regional, and national regulations. Samuel Toribio, head of Europe at rental platform Homelike, noted that the lack of standardization has caused significant uncertainty in the market.

Airbnb Warns of Economic Consequences: Jobs and Income at Risk

Airbnb has pushed back against Spain’s new regulations, warning of severe economic consequences for both income and jobs. Citing a report by Oxford Economics, Airbnb claims that the regulations could put 400,000 jobs at risk and result in a loss of nearly €30 billion in income. The report highlights the significant contribution of short-term rentals to Spain’s economy, with hosts earning €5.4 billion in 2023 and generating an additional €29.6 billion through guest spending in local shops, restaurants, and businesses. Airbnb argues that the restrictions will not only harm hosts and small businesses but also damage rural development and family tourism. The platform emphasizes its role in promoting rural and lesser-known destinations, with 70% of its bookings in Spain being for properties in rural or low-density urban areas.

The Limits of Restrictions: Lessons from Amsterdam

Amsterdam’s experience with short-term rental regulations offers valuable insights into the potential impact of Spain’s new rules. Since the introduction of stricter regulations in 2022, Amsterdam has seen a 12% increase in guest nights, but the rise has been driven by hotels rather than short-term rentals. In fact, there has been a 52% decrease in short-term rental guest nights, resulting in lost earnings for hosts. The restrictions have also led to the growth of an informal rental market, where hosts rent out properties unofficially, often through classifieds or social media. This trend raises concerns about the effectiveness of such regulations in addressing housing shortages and overtourism. Airbnb has called for targeted and tiered regulation, acknowledging that short-term rentals can have a significant impact in areas with high concentrations of tourist accommodations.

The Way Forward: Balancing Tourism and Housing Needs

The debate over short-term rental regulations in Spain highlights the need for a balanced approach that addresses both housing shortages and the economic benefits of tourism. While Airbnb and other platforms have been blamed for exacerbating housing crises, the real issue lies in the lack of new housing construction. Spain has built fewer homes in the last decade than at any point since 1970, and the creation of new households has outpaced the construction of new homes by three to one. Airbnb argues that the focus should be on increasing the supply of housing rather than restricting short-term rentals. The platform also points to the potential benefits of short-term rentals in promoting rural tourism and empowering local communities. As Spain navigates this complex issue, it will be crucial to engage in dialogue and explore innovative solutions that balance the needs of residents, businesses, and tourists alike.