MADRID (dpa-AFX) - The Spanish government has slapped Airbnb with a 64 million euros fine, claiming that the short-term rental service is promoting tens of thousands of illegal or prohibited properties.
According to the Consumer Affairs Ministry, over 65,000 listings have violated consumer protection laws this including rentals that either lack proper licenses or have registration numbers that don't match up with official records.
With this ruling, Airbnb is required to pull the problematic ads.
Airbnb plans to fight the fine in court, arguing that the ministry's actions are at odds with Spanish regulations.
The company insists it's been collaborating closely with the Ministry of Housing since the new national rules for short-term rentals kicked in back in July, which included setting up a registration system.
This enforcement move comes as Spain faces challenges with mass tourism affecting housing affordability. Popular tourist hotspots have seen a spike in rents and property prices, leading to worries that short-term vacation rentals are driving locals out of their neighborhoods.
Consumer Rights Minister Pablo Bustinduy noted that the government wants to ensure large companies stick to housing laws, especially during a time when there's a housing shortage.
Spain has been tightening its grip on short-term rentals, with protests taking place earlier this year in anticipation of the busy summer period.
Other major cities around the world, like Barcelona, New York, Paris, and Berlin, are also cracking down on platforms like Airbnb as they try to balance the needs of tourism with those of local housing.
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