Spain’s second-largest city is intensifying its crackdown on illegal short-term rentals, introducing fines that could exceed £500,000 for non-compliant listings.
In a recent announcement, the mayor of Barcelona, a major tourist destination, revealed that the city will not renew any of the 10,101 tourist licenses currently held by short-term rental operators when they expire in November 2028. This decision marks a significant shift in the city’s approach to regulating short-term rentals and aims to address ongoing concerns about the impact of these properties on local housing markets and communities.
The properties, which are predominantly listed on platforms like Airbnb, will be repurposed for local residents. The Mayor of Barcelona claims this approach is equivalent to constructing 10,000 new homes. This decision comes in response to the significant increase in rental costs, which have surged approximately 70% over the past decade, making housing increasingly unaffordable for many locals.
In a similar move, the Valencia region, a popular beach destination in Europe, is intensifying its crackdown on short-term rentals. The regional council has announced plans to impose substantial fines of up to €600,000 (over £510,000) on unlicensed short-let properties. This new enforcement aims to tackle the issue of unregulated rentals that have proliferated through platforms like Airbnb.
Currently, Valencia mandates that landlords offering short-term lets must obtain a Valencian Tourism Registry licence. This licence requires compliance with specific quality and safety standards and demands accurate reporting of owner details. The enforcement of these regulations is expected to better control the short-let market and ensure that rental properties adhere to established norms.
Local media in Spain indicate that short-term rentals in Valencia, including those listed on platforms like Airbnb, show a median occupancy rate of 79%, meaning these properties are booked for approximately 288 nights each year. Landlords with the highest activity typically generate around €27,000 in annual revenue from these rentals.
Data from consultancy Airbtics reveals that as of mid-April this year, there were 9,128 active Airbnb listings in the Valencia region. However, estimates suggest that this figure might be significantly lower than the actual number of short-term rental properties. Some sources propose that when accounting for unlicensed rentals listed across various online platforms, the total number of such units in Valencia could be as high as 50,000.
A Valencia tourism official spoke to the Financial Times, highlighting concerns about the rise of unregulated short-term rentals in the city. They stated, “We cannot tolerate an underground economy in the accommodation sector. These unlicensed properties operate outside of established regulations and often avoid paying taxes.”
The official emphasised that the lack of regulation leads to broader issues. “There is no way to verify if the owners are meeting their obligations to employees, which raises concerns about worker rights and fair treatment,” they noted.
Safety is another major concern. “The primary issue with these rentals is that they often do not comply with essential safety requirements,” the official explained. “They fail to report guest identities to the authorities, which poses risks for both guests and the local community.”
The official also pointed out that many of these properties do not adhere to regulations concerning fire safety, emergency procedures, and evacuation plans. “We cannot be sure if these properties have proper safety measures in place, which is critical for ensuring guest safety,” they added.
In summary, the official stressed that addressing these issues is crucial for protecting both the public and the integrity of the local accommodation industry. “It’s essential to enforce regulations and ensure that all properties, including short-term rentals, comply with safety and legal standards,” they concluded.
