Stricter EU framework for short-term rentals

The European Commission’s legislative proposal concerning short-term rentals, a draft of which became public at the end of August 2026, was expected to be presented early September 2026.

The planned legislation aims to establish more consistent criteria for cities and regions seeking to restrict Airbnb-type short-term rentals due to housing pressures. Authorities could consider factors such as the ratio of property prices to local incomes, population trends, and housing supply and demand when determining whether an area is experiencing housing stress.

The draft does not envisage a general EU-wide ban. Possible measures may include quantitative caps, limits on the number of rental days per year, and transitional or grandfathering arrangements for existing operators.

From a legal perspective, the key issue is not whether restrictions are possible, but how they can be justified. In its 2020 Cali Apartments judgment, the Court of Justice of the European Union held that a shortage of housing available for long-term rental may constitute an overriding reason relating to the public interest and may therefore justify an authorisation scheme for short-term rentals. Any restriction must nevertheless be suitable, necessary, proportionate and non-discriminatory. Local authorities cannot therefore rely on a general reference to a housing crisis: they must support the necessity of the measure with relevant local data.

This is closely connected to Regulation (EU) 2024/1028, applicable since 20 May 2026, which regulates the registration of short-term accommodation and the provision of data by online platforms to public authorities. Such data may provide the evidentiary basis needed to demonstrate that local restrictions are necessary and proportionate.

The proposal would therefore not automatically restrict Airbnb activity, but could provide a more robust legal basis for local regulatory measures. As a next step, following its expected presentation, the proposal will be considered and negotiated by the European Parliament and the Council before it can become EU law.