Buying Property
Can I Airbnb My European Property? The Rules Country by Country
Short-term rental rules in Europe have changed dramatically in the last three years. Before you factor Airbnb income into your purchase decision, here is what the regulations actually say — and where the real opportunities still exist.
The short-term rental market in Europe has changed significantly since 2022. Several countries and cities have introduced restrictions, licensing requirements, and outright bans in certain areas. Here is the current state of play.
Portugal
Portugal introduced significant short-term rental (Alojamento Local — AL) restrictions in 2023. Key changes:
- New AL licenses are suspended in many high-demand areas (Lisbon, Porto, and most of the Algarve coast)
- Existing AL licenses can be transferred with a property sale, which has made licensed properties significantly more valuable
- Properties outside the restricted zones can still obtain new licenses
- The Alentejo coast, Silver Coast, and interior of Portugal remain more accessible for new AL licensing
What this means in practice: If short-term rental income is central to your investment case, prioritise properties that already have an active AL license, or focus on areas where new licenses are still available.
Spain
Spain's short-term rental rules vary dramatically by region and municipality. Generally:
- Barcelona and Madrid have heavily restricted new tourist apartment licenses — virtually impossible to obtain in city centres
- Valencia city has introduced significant restrictions
- The Balearic Islands (Mallorca, Ibiza) have strict caps
- Andalusia (Málaga, Seville, Costa del Sol) remains relatively accessible with proper registration
- The Canary Islands are relatively permissive outside specific saturated zones
The general trend: coastal cities and major urban centres are restricting; rural areas and smaller towns remain accessible.
Italy
Italy is in the process of introducing national regulations that were not previously in place. The current framework:
- Short-term rental platforms must collect and remit a 21% flat tax (cedolare secca) on rental income
- A national registry (CIN — Codice Identificativo Nazionale) is now mandatory for all short-term rentals
- Some municipalities (Venice, Florence) have additional restrictions
- Southern Italy and rural areas remain permissive for new operators
Greece
Greece is currently one of the most permissive European countries for short-term rental:
- Registration with the Hellenic Accommodation Register is required
- No area-specific bans currently in place (though Athens has discussed restrictions)
- Rental income taxed at a flat rate starting at 15%
- The combination of rising tourist numbers and permissive regulation makes Greece currently attractive for short-term rental investment
What to do before you buy
Never assume short-term rental income when evaluating a purchase unless:
1. The property already has a valid license (in restricted markets)
2. You have confirmed with a local attorney that the specific property and area permit new applications
3. You have modelled the investment conservatively using long-term rental income only
Short-term rental income can be 2–4x long-term rental income in high season — but regulations can change. We help clients evaluate the realistic income potential for specific properties before purchase.