Spain Introduces National Register for Short-Term Rentals to Tackle Housing Crisis and Overtourism

In a significant move to address the escalating housing crisis and the impacts of overtourism, Spain's central government has issued a royal decree establishing a single national register for short-term rental properties. This new regulation, set to come into effect on January 2, 2025, aims to bring order and transparency to the booming short-term rental market.

Key Provisions of the New Law

The decree, signed by President Pedro Sánchez of the Spanish Socialist Workers’ Party (PSOE) and the Council of Ministers, mandates that all short-term rental properties must register with a central digital service and obtain a unique code. This code will be essential for listing properties on any online booking platform. Landlords will be required to renew their registration annually, providing the necessary information and ensuring that their properties are identified with the unique code on all listings.

Impact on Housing and Tourism

The introduction of this national register is part of a broader strategy to confront the housing crisis and the 'over-tourism' phenomenon that has sparked widespread protests across Spain. Cities like Madrid and Barcelona have been particularly affected, with short-term rentals contributing to skyrocketing housing prices and displacing local residents. By regulating these rentals, the government hopes to increase the availability of affordable housing for citizens and alleviate the pressure on urban infrastructure.

Barcelona's Ban on Short-Term Rentals

In line with this national effort, Barcelona has taken a more drastic measure. In June 2024, Barcelona's socialist mayor, Jaume Collboni, announced a ban on all short-term rentals for tourists in the city by late 2028. Starting from November 2028, no new licenses will be issued, and existing ones will be revoked. This move is intended to mark a “turning point” for Barcelona, addressing the housing shortage and the escalating rental prices that have become a significant concern for local residents.

Enforcement and Compliance

The Spanish government is also targeting unlicensed rentals and large property managers accused of deceptive practices. An investigation launched in June 2024 uncovered thousands of listings on platforms like Airbnb that violated consumer protection regulations. Airbnb faces potential fines ranging from €100,000 to six times the illicit gains obtained for failing to remove these illegal listings despite repeated warnings.

Regional Regulations

In addition to the national register, regional authorities are implementing their own regulations. For instance, the Comunidad Valenciana introduced new tourist rental regulations in August 2024, allowing local councils to cap the number of tourist rental licenses in specific areas and requiring property owners to obtain a favorable urban compatibility report and register with the Tourism Registry.

Community and Stakeholder Reactions

The new regulations have been met with mixed reactions. While local communities welcome the measures as a step towards addressing the housing crisis and overtourism, short-term rental groups and booking platforms have urged the government to reconsider. The European Holiday Home Association (EHHA) has issued an official complaint to the European Commission regarding Barcelona's ban, arguing that it unfairly benefits the hotel industry without addressing the underlying issues.

Future Outlook

As Spain moves forward with these regulatory efforts, the focus remains on creating a sustainable and inclusive tourism ecosystem. The government aims to foster collaboration between stakeholders, promote long-term rentals, and enhance urban planning to accommodate both residents and visitors. These initiatives could serve as a model for other countries facing similar challenges in balancing tourism growth with residential stability.