Home » EUROPE » Spain, Italy, France, Portugal Join Forces in Crackdown on Airbnb Rentals: The Domino Effect Begins
Wednesday, July 9, 2025
As tourism remains to frame economies across Europe, Spain’s most recent effort to regulate short-term lodging rentals like Airbnb is setting a significant benchmark that may prompt other regions across the continent to follow suit. Spain’s regulations, which were recently initiated, now force all residential units that are utilizing tourism and short-term rentals to have a necessary registration code to legally exist. This action tries to curb explosive growth of short-term rental listings on websites ranging from Airbnb to Booking.com and Vrbo.
The new rule, which is part of Spain’s broader efforts to combat overtourism and housing shortages, has already led to a dramatic reduction in the number of available rentals. According to official reports from the Spanish Ministry of Social Rights, Consumption, and Agenda 2030, approximately 66,000 properties have been removed from the market as a result of failing to comply with the registration requirement. In total, the number of short-term rental listings in Spain has been reduced by nearly 20%, from 351,389 listings in 2024 to a significantly lower figure.
The Growing Concern in European Destinations
The changes in Spain have had an immediate effect on not only holidaymakers but also local residents. Spain’s government claims that the oversupply of short-term rentals has been one of the driving factors behind escalating property prices and a growing housing crisis in popular tourist destinations. Cities like Barcelona and Madrid have been particularly affected, with rising rents and a limited supply of homes available for locals. This new regulation, therefore, has garnered mixed reactions – some welcome it, while others fear its impact on the affordability and accessibility of housing.
From the perspective of holidaymakers, this reduction in rental properties may lead to higher prices and fewer options, especially in areas heavily reliant on tourist income. These changes will undoubtedly affect those planning their vacations in Spain in the near future, as reduced availability may make securing affordable, high-quality rental accommodations a more difficult task. However, there’s a silver lining for local residents who feel that the market has been skewed by the dominance of vacation rentals.
Spain’s Regulatory Measures and Their Ripple Effect
As the dust settles on Spain’s move, the question remains whether other countries in Europe will follow suit. Many property experts predict that Italy could soon join the ranks of countries taking a hard stance on Airbnb rentals. This prediction comes as Italy, already embroiled in a legal battle regarding short-term rental restrictions, prepares to take more stringent measures. Property professionals like Kundan Bhaduri from The Kushman Group have stated that Italy is “clearly next” to introduce tighter regulations, pointing out that the Italian government has already begun discussions around banning certain street rental listings.
“There’s a clear domino effect taking place. Spain’s approach is likely to spark similar action in other tourist-heavy nations like France and Portugal,” said Bhaduri. With overtourism and local housing pressures mounting, European governments are increasingly turning their attention to short-term rentals, with many now viewing them as the primary culprit in exacerbating housing affordability issues. If other countries adopt similar measures, thousands more properties could be removed from popular vacation rental platforms, changing the landscape of European tourism.
The Debate Over Airbnb’s Role in the Housing Crisis
While some celebrate Spain’s new laws, others, like Airbnb representatives, argue that this crackdown on short-term rentals is not a complete solution to the housing crisis. An Airbnb spokesperson recently claimed that the root cause of the housing shortage is a lack of available homes, and that regulation of platforms like Airbnb only exacerbates the problem for local families who rely on rental income to afford their homes. According to the company, more emphasis should be placed on constructing new housing to meet growing demand rather than imposing regulations on short-term rental platforms.
Despite these arguments, the success of Spain’s new measures could inspire more countries to follow suit, with France seen as a likely candidate. Tony Redondo, founder of Cosmos Currency Exchange, suggested that France may be the next country to adopt similar regulations. Redondo believes that while Italy’s regulations are less stringent than Spain’s, France is more likely to emulate Spain’s actions due to its growing concerns over the impact of tourism on local communities.
Looking Ahead: What This Means for the Future of Short-Term Rentals
The future of short-term rentals in Europe is rapidly changing, and Spain’s decision to impose mandatory registration codes on Airbnb properties is just the beginning. If the policy proves effective, we may see similar measures rolled out across other popular European destinations like France, Portugal, and even the Balearic Islands.
For tourists, the implications are significant. Travelers may soon find themselves facing higher prices for short-term rentals in many of Europe’s most popular cities, as fewer properties become available due to legal regulations. Property owners may also face challenges in navigating increasingly complex laws that vary from country to country. However, for local communities, these measures may help alleviate some of the housing pressures that have grown as a result of the global rise in short-term vacation rentals.
Ultimately, Airbnb and other short-term rental websites’ clampdown in Spain represents a breakthrough in the long-running discussion of tourism’s contribution to local housing markets. As other countries look towards Spain’s lead, travelers and property owners will have to grapple with a rapidly changing scenario that will necessarily restructure the nature of travel across Europe dramatically. Only time will truly tell if the regulations will truly solve the housing crisis, or if they will simply transfer the issue to other locales across Europe.
