Spain targets unlicensed tourist rentals blamed for housing instability, imposes record-breaking sanctions on Airbnb

Internal shift in perception around “quasi-tourism businesses”
From ad removals to property closures, administrative actions accumulate
Regulation tightens as tourism–housing conflict deepens

The Spanish government has moved to sanction Airbnb by imposing a large fine for listing unlicensed short-term rental properties. Authorities argued that operating tourist-oriented short-term rentals requires approval from local governments and a valid registration number, and concluded that many listings were posted without meeting these requirements. The measure is seen as a clear administrative signal that Spain no longer views short-term rental platforms as mere intermediaries, but as responsible parties required to comply with tourism-related laws and regulations.

“Disrupting the lawful housing market” criticism

According to local outlet El País, Spain’s Ministry of Consumer Rights on the 15th imposed a fine of €64.1 million, equivalent to approximately $75.4 million, on Airbnb for listing illegal tourist accommodations without authorization. This is the second-largest penalty ever imposed by Spanish authorities in connection with consumer rights violations. A ministry official said that numerous illegal lodging operators provided misleading information to consumers through online platforms and disrupted the lawful housing market, explaining the background of the decision.

At the core of the sanction is the Spanish government’s legal interpretation of Airbnb’s business conduct as the substantive execution of tourism activity rather than simple platform mediation. Under Spanish law, short-term rentals targeting tourists must obtain approval from local authorities and display a unique registration number. However, investigations found that among 65,122 properties listed on the platform, most showed missing registration numbers, inconsistencies with official databases, or false identifiers. Authorities concluded that such practices mislead consumers about the legal status and safety of accommodations, prompting the imposition of a heavy fine.

Another key issue emphasized by the government was the breakdown of fair competition. Hotels and licensed tourist accommodations must comply with safety, hygiene, fire regulations, as well as tax and labor rules. Unlicensed short-term rentals, by contrast, absorb the same demand while avoiding regulatory burdens. The Ministry of Consumer Rights argued that this structure distorts the cost base of lawful lodging businesses and creates unfair price competition. In this context, the phrase “disrupting the lawful housing market” reflects a broader challenge to short-term rental models that blur the boundary between housing and tourism.

Spain also stressed the need to clearly define platform responsibility. The government stated that Airbnb went beyond merely providing listing space and facilitated transactions without adequately verifying the legality of properties. Some listings even lacked clear host identity information, leaving consumers who believed they were staying in legal accommodations without insurance or dispute-protection mechanisms. Given the broader impact of short-term rentals on tourism and local housing markets, Spanish authorities argued that the traditional “shared accommodation” framing can no longer serve as a shield against accountability.

Ongoing controversy over housing rights

Ahead of the fine, Spain had already stepped up pressure on the short-term rental market through large-scale property closures and ad removals starting in the first half of the year. In late May, Spanish courts ordered the immediate suspension of 5,800 accommodations that violated tourist housing regulations, and issued closure orders for more than 60,000 additional properties within a set timeframe. Airbnb announced plans to appeal, arguing that the measures indiscriminately included rentals that did not require permits. The Spanish government, however, supported the court’s decision, emphasizing that these properties had been converted from residential housing into tourist products, directly harming local communities.

The backdrop to these measures is a worsening housing shortage exacerbated by a surge in tourism. Spain attracted approximately 94 million tourists last year, the second-highest total globally after France, and some forecasts suggest visitor numbers could reach 100 million this year. As short-term rentals expanded rapidly, long-term rental supply shrank sharply in major cities such as Madrid, Barcelona, and Valencia. Spain’s Sociological Research Center warned that the rapid increase in housing registered on short-term rental platforms has pushed major tourist cities into rental crises.

The figures illustrate the pressure. Spain’s average monthly rent last year stood at €992, or about $1,167, while Madrid’s average rent reached €1,600, or roughly $1,882. This represents an increase of about 85% compared with a decade earlier. Spain’s Minister of Consumer Rights, Pablo Bustinduy, said that the 66,000 short-term rentals ordered to close had been homes intended for families, workers, and students, adding that residents are being pushed out of their neighborhoods as cities turn into theme parks serving the interests of a small number of investment funds and corporations.

Turning point for the “sharing economy” model

The conflict and regulatory tightening are part of a broader European debate over short-term rental restrictions that has been building for years. The most emblematic case is eastern Spain’s Catalonia region, particularly Barcelona. With strong regional autonomy and a distinct cultural identity, the area adopted an independent approach to housing and tourism policy early on. As tourism surged, short-term rental demand exploded, residential housing rapidly disappeared from the market, and regional authorities identified shared accommodation as a central driver of the housing crisis.

Barcelona pioneered some of Europe’s most aggressive regulatory experiments, including halting new short-term rental licenses, revoking existing permits, and strengthening platform responsibility. In 2014, the Catalan government fined Airbnb €30,000, or about $35,300, for advertising illegal tourist apartments, marking Europe’s first such sanction. Authorities also warned that failure to comply with corrective orders could result in blocking access to the platform’s website within the region, setting a precedent for holding platform operators directly accountable.

These regulatory trends have since spread across Europe’s major cities. Amsterdam limited short-term rentals to 30 days per year and allowed only registered properties to be listed on platforms. Paris introduced a 120-day annual rental cap, mandatory registration numbers, and fines for illegal listings. Berlin effectively banned short-term rentals in principle starting in 2014 and sharply narrowed exceptions in 2018. Rather than banning shared accommodation outright, these measures aim to institutionalize a “housing-first” principle to prevent tourism demand from overwhelming residential markets.

More recently, Lisbon launched a referendum process centered on restricting tourist-oriented residential rentals, citing housing shortages and surging rents. Over the past decade, Lisbon’s home prices rose by nearly 200%, while rents almost doubled. These cases reflect a growing perception that the costs of tourism growth and foreign inflows are being passed on to residents in the form of housing insecurity, underscoring that the debate over short-term rental platforms is a shared challenge facing European cities.