How Europe's Growing Short Term Rental Regulations Affect Your Travels Moving Forward

Short-term rentals have become a major problem for some of Europe's heavily touristed cities, to the point that they've begun to implement regulations like caps on the number of rentals allowed and limits to how many nights guests can stay. A press release from the European Parliament, outlining new EU-wide rules for short-term rentals, explains that unregulated short-term rentals "contributes to problems like higher housing prices, the displacement of permanent residents, over-tourism, and unfair competition." While abundant short-term rentals might make it easier for travelers to find accommodations, for locals this often means fewer affordable places to live and residential areas becoming overcrowded. New regulations are attempting to strike a balance.

Some individual countries and cities already enacted laws related to short-term rentals before broader EU regulations come into practice. For example, Italy banned the Airbnb standard self check-in boxes for short-term rentals in 2024, and Berlin has had a ban on renting out more than 50% of an apartment's floor space since 2016. In 2024, the EU passed a regulation on data collection related to short-term rentals, which will come into effect in 2026. While not as strict as some of the localized regulations already passed, the broad regulation is an attempt to crack down on surging illegal short-term rentals.

European Parliament member Kim Van Sparrentak broke down the new law concisely in the press release: "This law requires platforms to share their data with local authorities, allowing them to better enforce rules for vacation rentals so housing remains accessible for residents." The platforms in question are Airbnb, Expedia, Booking.com, and Tripadvisor. Essentially, the regulation requires the platforms to share rental data with public authorities, mandate rental registrations, and, eventually, reduce illegal listings.

Travelers won't necessarily have to do much differently when looking for accommodations, since the new EU regulation places the responsibility on booking platforms and hosts to make sure they're abiding rental laws. You might notice fewer options in the coming years, as the regulations curb noncompliant listings, but the plus side is that those that remain are more likely to be legitimate and aren't overburdening local communities.

Whether you're searching on Airbnb or one of the best Airbnb alternative rental platforms, you might also find that the rules on how and when you can book are stricter in certain cities. Digital nomads, for example, will find that short-term rentals are capped at 90 days for cities like Berlin, Dublin, and Madrid, and even less (30 days) for Amsterdam. In some cities, you won't be able to rent short-term in historic, preserved districts. Barcelona plans to phase out all short-term rentals in its historic center starting in 2026, and Vienna is likewise considering a ban for its city center, the European Real Estate News Agency reported.

With somewhat tighter options, there's a good chance you'll see higher prices on rentals in the following years. But those are costs that could potentially save destinations from cultural erosion. One of the reasons Rick Steves begs travelers to stop booking Airbnbs is that they're turning historic, residential neighborhoods into crowded and expensive tourist hotspots. Regulations aren't banning short-term rentals altogether, but they are putting buffers on how much those rentals deplete beloved travel destinations of their charm. You'll pay more, but the cities you travel to will be all the more enjoyable.