Published on
December 7, 2025
Europe is witnessing a significant shift in the landscape of short-term rentals (STRs) as several countries, including the UK, Italy, France, Germany, Spain, Netherlands, and Austria, introduce stricter regulations to address the growing concerns over housing shortages and the impact of tourism on local communities. In response to rising housing costs and the commercialization of residential properties, these nations are cracking down on short-term rentals, with new laws and measures that are reshaping the accommodation market across the continent. From mandatory registration requirements to night caps on the number of rental days, cities are tightening the rules to balance the needs of tourists with the preservation of local housing availability. For travelers, this means that finding affordable, legal short-term rental options may become more challenging, leading to higher costs and fewer choices in popular destinations. As Europe moves toward more regulated STR markets, it is essential for tourists to stay informed about the latest changes, ensuring they can navigate this evolving landscape and secure their accommodation well in advance.
London, United Kingdom: A Longstanding 90-Night Cap
London’s regulation of short-term rentals follows a 90-night cap, which allows property owners to rent out their homes for up to 90 nights per year without needing a special permit. Any rental exceeding this limit requires a planning application. This longstanding regulation is designed to prevent the commercialisation of residential properties, ensuring that housing remains available for locals while still catering to the tourism industry. However, the limit on STRs means that accommodation options may be more limited, particularly during peak travel seasons, and tourists should plan early to avoid higher prices and fewer choices.
Florence, Italy: A Ban on New STR Registrations in the Historic Centre
Florence has introduced a ban on new short-term rental registrations in its historic city centre, which is a UNESCO World Heritage site. This regulation is aimed at preserving the city’s architectural and cultural heritage while addressing the impact of tourism on local housing. Tourists hoping to stay in the heart of Florence will now find fewer rental options, with the city focusing more on protecting its historic districts than catering to transient visitors. As a result, visitors may need to consider hotels or accommodations further outside the city centre.
Paris, France: STR Crackdown and the Quest for Balance
Paris, one of Europe’s most iconic destinations, has introduced strict regulations to control the growth of short-term rentals (STRs). The French capital requires property owners to register their STRs, and rentals are capped at 120 nights per year for any given property. This is aimed at ensuring that residential properties remain accessible to Parisians, while still accommodating tourists. As the city grapples with housing shortages and rising costs, the crackdown on STRs has led to a reduction in available rentals, particularly in central areas. Tourists will find fewer budget-friendly options, and with limited availability, accommodation prices are likely to increase, especially during peak seasons like fashion week or the Olympics. To avoid disappointment, travellers should book well in advance and ensure their accommodation is registered with the authorities.
Berlin, Germany: STR Regulations Focus on Housing
Berlin’s approach to short-term rentals includes registration and zoning regulations, limiting properties to 60 or 90 nights per year, depending on the district. This has resulted in many landlords returning properties to the long-term rental market, which has alleviated some housing shortages. However, it has also reduced the number of STRs available to tourists. With limited options and higher prices, tourists visiting Berlin should plan ahead to ensure they secure accommodation, especially during peak periods.
Amsterdam, Netherlands: A Tightening of STR Regulations
Amsterdam has taken a bold stance in regulating short-term rentals (STRs), implementing a combination of registration requirements and a night cap. With rentals now capped at just 30 nights per year, the city has effectively reduced the availability of short-term lets. This restriction has led to a significant increase in the price of both STRs and hotels. For tourists planning to visit Amsterdam, securing accommodation in advance is crucial, as budget-friendly options will be snapped up quickly due to the limited availability of legal rentals.
Palma de Mallorca, Spain: STRs Banned in Apartments
Palma de Mallorca has implemented a partial ban on short-term rentals, specifically banning them in apartment buildings. STRs are only allowed in isolated houses or villas, effectively removing many apartments from the rental market. This policy aims to protect residential areas from the pressures of tourism and ensure that local housing remains accessible. Tourists looking for short-term rentals in Palma will need to focus on finding standalone homes or villas, as apartments in the city are no longer available for short-term rental use.
Vienna, Austria: STRs Under Strict Oversight
Vienna has enacted a national law that imposes a 90-night annual limit for short-term rentals. Hosts are required to obtain special permits, and longer stays often need approval from co-owners of the building, a process that can be difficult. These measures are designed to ensure the availability of housing for residents while still accommodating tourists. As the number of available STRs decreases, tourists may find that their options are more limited, with the demand for legal rentals pushing prices higher.
Lisbon, Portugal: A Freeze on New STR Licenses
Lisbon has introduced a license freeze in most urban areas, stopping the issuance of new short-term rental licenses. While existing licenses remain valid, they are subject to review every five years. This freeze comes as a response to the growing pressure on Lisbon’s housing market, where an increasing number of properties are being converted into STRs. For tourists, this means fewer options in popular areas, and the remaining available rentals are likely to be more expensive due to limited supply.
Athens, Greece: A Ban on New STR Licenses in Central Areas
Athens is set to implement a ban on new short-term rental licenses in central Athens starting in January 2025. This move is part of a broader strategy to address the city’s housing crisis, where short-term rentals have been blamed for driving up prices and reducing the availability of housing for local residents. Additionally, the city plans to increase taxes on existing rentals. For tourists, this means that central Athens will see fewer STR options, and the prices of the remaining legal rentals are likely to rise as supply dwindles.
Prague, Czechia: STR Regulation in the Works
Prague is preparing to implement new regulations for short-term rentals, including mandatory registration and potential caps on rental days. These changes are expected to align with the new EU regulations aimed at controlling the growth of STRs across Europe. While the legislation is still being finalised, it’s clear that Prague is moving towards a more regulated rental market. Tourists should stay informed about any updates to the laws, as these changes could impact the availability and pricing of short-term rentals in the city.
Key Regulatory Trends Across Europe: Common Themes
Several key trends are emerging as cities across Europe clamp down on short-term rentals:
- Annual Night Caps: A growing number of cities, including London, Vienna, and Amsterdam, are introducing nightly limits on short-term rentals, typically ranging from 30 to 90 nights per year. This aims to prevent residential properties from being overtaken by tourism, ensuring that they remain available for locals.
- Mandatory Registration & Data Sharing: Under new EU-wide regulations, all short-term rental properties will soon be required to register online, providing local authorities with critical data to enforce rules and crack down on illegal rentals.
- Zoning and Permit Requirements: Increasingly, cities are introducing zoning laws that require special permits for short-term rentals. In some areas, these permits are only granted if a property is used for tourism-related purposes and not residential ones.
- Hefty Fines for Non-Compliance: Cities like Vienna are stepping up enforcement by introducing substantial fines, sometimes reaching up to €50,000 per apartment, for hosts and platforms that violate local STR regulations.
The UK and Italy are joining countries like France, Germany, Spain, Netherlands, and Austria in tightening short-term rental regulations across Europe. This crackdown is aimed at addressing housing shortages and ensuring local communities aren’t overwhelmed by tourism.
Conclusion
UK and Italy, alongside France, Germany, Spain, Netherlands, Austria, and others, are intensifying their crackdown on short-term rental regulations across Europe. These measures are crucial for tackling housing shortages and maintaining a balance between tourism and local housing needs. As more countries adopt similar policies, travelers will face fewer options and higher costs for STRs. Staying informed about these changes and booking in advance will be essential for navigating the evolving landscape of short-term rentals across Europe.
