Spain fined Airbnb €65 million over illegal housing rentals

Photo: BBC

Spanish authorities have taken another step against illegal short-term rentals. The Ministry of Consumer Affairs has fined Airbnb €65 million for advertising tourist accommodation without valid licences, reports Euronews. The ministry declared the decision final and ordered the immediate removal of such advertising.

In Spain, 65,122 Airbnb listings were identified as violating consumer protection rules. Tourist accommodation was offered without short-term rental licences, or licence numbers were provided that did not match official government registers. Under current national rules, platforms are required to verify that advertising complies with regulatory requirements. When this control is lacking, illegal listings remain on the site longer than permitted, reducing the number of properties available to the long-term rental market.

The size of the fine corresponds to six times the profit Airbnb earned during the period between the authorities warning the company about rule-breaking listings and their removal. The Ministry of Consumer Affairs stated that the fine is not subject to appeal; however, company representatives said they intend to challenge the decision in court, writes the BBC. Airbnb insists that the ministry’s actions contradict Spanish law. It is also noted that following regulatory changes introduced in July, Airbnb “has been working closely with Spain’s Ministry of Housing to ensure compliance with the new national registration system”.



The tighter approach has also affected other online platforms. In June, Spanish authorities ordered Booking.com to remove more than 4,000 listings that failed to meet current requirements and were deemed illegal. Inspections of tourist accommodation are continuing nationwide. More than 53,000 illegal apartments have already been removed from official registers, with the highest numbers recorded in Andalusia, the Canary Islands, Catalonia and Valencia.

Barcelona has become the most prominent focal point of the fight against short-term rentals in Spain, with plans to completely phase out tourist apartments by 2028. This decision effectively closes the possibility of short-term letting of private homes in residential buildings. City officials argue that this rental format has reshaped entire neighbourhoods in recent years and pushed residents out of the rental market. Málaga has introduced a three-year moratorium on such properties. The Canary Islands have reduced the share of housing available for rental to 10%.

Consumer Affairs Minister Pablo Bustinduy stressed that a shortage of affordable housing has left thousands of families in Spain living in unstable conditions. At the same time, he said, some companies continue to profit from business models that effectively deprive people of the ability to keep their homes.



In 2024, Spain welcomed a record 94 million foreign tourists, and this figure could be surpassed in the current year, according to official estimates. Against this backdrop, public discontent is growing over the spread of short-term rentals and the rising number of visitors. Protests are taking place in various cities against rising prices and the lack of affordable housing for local residents.

Strict restrictions on Airbnb are already in place in New York, Berlin, Paris and San Francisco, where the company was founded. Tourism remains one of the key pillars of Spain’s economy; however, according to the authorities, further growth will require tighter regulation of short-term rentals in order to maintain a balance between the interests of travellers and the living conditions of the local population.

Analysts at International Investment note that a trend towards tighter regulation of the short-term rental housing market can be observed across many European countries and other regions. Governments are increasingly reforming this segment, favouring the hotel sector, where rules are more transparent and consistent. For investors, such changes mean higher costs and lower returns, and in some cases the need to shut down operations or relocate them to other regions or even countries. Overall, research suggests that investments in residential property are becoming less justified compared to hotel projects. Many market participants are already revising their strategies, directing capital towards hotels, with branded luxury-level properties considered the most stable and profitable segment.