New EU Regulation to Reshape Short-Term Rental Market Across Europe

Starting May 20, 2026, a new European Union regulation will significantly transform the short-term rental market across member states. The legislation, formally known as Regulation (EU) 2024/1028, introduces stricter rules for property owners listing accommodations on platforms such as Airbnb and Booking.com.

The primary objective of the regulation is to increase transparency, reduce the size of the informal rental sector, and ensure fair taxation. Under the new rules, all short-term rental properties must be officially registered with local authorities and included in national tourism databases where applicable. Each listing will be required to display a valid registration number.

Digital platforms as Airbnb and Booking.com will also face new obligations. They must verify that properties listed on their services are properly registered and will be required to share data with national authorities. Listings that fail to comply with these requirements risk being removed automatically.

Industry experts estimate that a significant portion of current listings across Europe operate outside regulatory frameworks. As a result, the new measures could lead to a substantial reduction in available properties on major booking platforms, particularly in popular tourist destinations.

For property owners, compliance will bring additional responsibilities, including tax reporting, potential VAT obligations, and adherence to local tourism regulations. While this may increase operational costs, authorities argue that the changes will create a more level playing field within the hospitality sector.

The regulation is expected to have a mixed impact on the market. On one hand, it may reduce supply and contribute to rising accommodation prices. On the other, it aims to improve quality standards, consumer protection, and public revenue collection.

Overall, the new EU framework represents a decisive step toward regulating the rapidly growing short-term rental industry and aligning it with broader economic and social policies across Europe.