European policy on short-term rentals is moving from the phase of discussion to that of actual implementation. A key milestone for the hospitality market is 20 May 2026, when Regulation (EU) 2024/1028 will enter into force across all EU Member States.
In the months that follow and until the end of the year, the Regulation will be complemented by additional measures guided by the principle of proportionality, as outlined below.
The EU Regulation 2024/1028
In practice, the Regulation aims to standardise the way short-term rentals are identified, registered and reported across the EU. Public authorities will gain a clearer picture of what is being rented, where and to what extent, facilitating more consistent enforcement of local rules.
As the supply of short-term rental properties becomes easier to map and verify, cities and regions already facing housing pressure will have a stronger evidence base to support policy decisions. Authorities will be able to identify, at any point during the year, how much short-term rental stock is actually available on the market and when.
Shift towards neighbouring municipalities
A common outcome of stricter regulation in urban centres is the displacement of demand—and part of the supply—to neighbouring municipalities. As a result, some short-term rental operators may relocate rather than exit the market altogether.
The EU Regulation is now clearly embedded in the broader European framework addressing the housing crisis. The European Affordable Housing Plan explicitly links the expansion of short-term rentals to housing pressure, signalling further interventions beyond mere data transparency.
At the same time, an analysis by the European Parliament highlights that, until now, authorities have relied on incomplete or indirect data. From May 2026 onwards, this will change—along with the capacity for effective oversight.
The objective of the new Regulation
The new rules introduce harmonised registration requirements for hosts and short-term rental properties, including the issuance of a unique registration number to be displayed on property websites and online platforms.
Hosts will be required to submit basic information in order to obtain this registration number, which will be mandatory for offering short-term accommodation services.
Online platforms, in turn, will be obliged to regularly transmit information on hosts’ rental activity to a single digital entry point in each Member State. This will enable competent authorities to produce reliable statistics and adopt well-informed regulatory measures.
The next step: proportionality
In December 2025, the European Commission presented the European Affordable Housing Plan and is already preparing a legislative proposal expected to be submitted by the end of 2026.
A central pillar of the Commission’s approach is proportionality. Brussels acknowledges that blanket restrictions on short-term rentals could harm tourism, a key economic pillar for many EU regions. Rather than imposing general bans, the emerging framework foresees targeted, evidence-based interventions, applied only where it is demonstrated that short-term rentals are removing housing stock from the long-term rental market.
Areas under housing stress
A cornerstone of the forthcoming legislation will be the definition of criteria for identifying so-called “Areas Under Housing Stress.” These are primarily urban centres and heavily touristic destinations where the concentration of short-term rental accommodation reaches critical levels.
According to European estimates, in some areas short-term rentals account for up to 20% of total housing stock, significantly reducing availability for permanent residents and exerting upward pressure on rents.
In such areas, local and regional authorities will have a clear legal basis to introduce targeted measures, such as:
Annual caps on the number of rental days per property, a practice already applied in cities such as Barcelona and Paris.
Seasonal use rules, aimed at shifting properties back to the long-term rental market outside the peak tourism season—for example, for residents or students.
The use of these tools will not be mandatory. The EU does not impose a one-size-fits-all solution, but instead establishes a clear and predictable framework ensuring that any intervention is evidence-based, proportionate and compatible with the rules of the Single Market. This approach also safeguards the principle of subsidiarity, with decisions taken as close as possible to local communities.
These measures strengthen market oversight, facilitate tax compliance and—most importantly—provide reliable data to identify areas under housing pressure.
The 2026 proposal seeks to address remaining regulatory gaps by introducing more targeted tools to limit activity where necessary, alongside enhanced consumer protection safeguards.
Distinguishing professional and non-professional hosts
Another key issue under discussion is the clearer distinction between professional and non-professional hosts. The Commission aims to differentiate the regulatory burden borne by large-scale, systematic operators from that applied to individuals who rent out a property on an occasional basis.
This approach seeks to curb the conversion of residential housing into purely tourist products without penalising small property owners, while simultaneously strengthening enforcement and compliance with local rules.
Political balancing act
The Commission is pursuing a delicate balance: preserving the economic and cultural benefits of tourism while safeguarding access to affordable housing. The emerging framework avoids generalised bans and instead prioritises data-driven, local solutions aligned with the objectives of sustainable tourism development, with particular attention to vulnerable groups such as young people, students and workers in essential sectors.
The legislative process will unfold through the end of 2026, involving platforms, hosts, professional associations and housing organisations. The final outcome could represent a significant step towards a more fair, transparent and balanced rental market across the European Union.
