Spain Enforces Penalty on Airbnb for Non-Compliant Listings, Here’s All You Need to Know

Published on December 15, 2025

In what has been a major step against Spain’s housing crisis, the Spanish government fined Airbnb over €64 million, approximately $75 million. According to a statement issued by the country’s consumer affairs ministry, this is due to Airbnb’s failure to comply with local housing regulations, particularly in high-demand tourist areas. The decision sparked debate over broader issues of how short-term rentals were contributing to Spain’s general shortage in housing, where residents and government officials have blamed such services for inflating rent prices and pushing native residents from their homes.

Airbnb Faces Heavy Fine for Violating Spain’s Housing Regulations

The Spanish leftist government has acted decisively against Airbnb for its involvement in promoting illegal short-term rental properties in the country. According to the consumer affairs ministry, Airbnb was found to have posted 65,122 advertisements that violated consumer protection laws. These listings included properties that were either unlicensed or whose licensing numbers did not match the official registers.

The fine is one of the largest ever levied against a major holiday rental company and underscores the growing tensions between the booming tourism sector and the housing challenges faced by locals. The consumer affairs ministry has insisted that the fine is final and must be paid by Airbnb. Additionally, Airbnb is required to remove any listings that fail to comply with Spanish regulations, which include ensuring that all properties for rent are legally licensed and properly registered.

The fine imposed on Airbnb is substantial, equivalent to six times the illegal profits Airbnb made from these unlawful listings between the time they were flagged and when they were taken down. This penalty is part of a broader strategy by the Spanish government to curb the impact of unregulated short-term rentals on the housing market, particularly in major tourist hubs.

Tourism Boom Contributing to Housing Crisis

Spain, which is the world’s second most-visited country after France, has seen a tourism boom in recent years, attracting a record 94 million foreign tourists in 2024. With a steady increase in international visitors, the tourism industry has become a major driver of the economy. However, this surge in tourism has also placed significant pressure on the housing market, particularly in popular cities like Barcelona, Madrid, and Valencia, where short-term rentals have become a point of contention.

Many locals in these cities have expressed frustration over the increasing number of properties being converted into short-term rental units, reducing the availability of long-term rental housing for residents. In areas where housing prices were already rising, the influx of tourists has further driven up rents, making it increasingly difficult for local families to find affordable housing. As a result, neighborhoods are undergoing significant changes, with long-time residents being displaced in favor of short-term rental tenants who are willing to pay higher prices.

The government has highlighted the issue of short-term rentals as one of its top priorities, particularly in areas where the housing crisis is most acute. Far-left consumer rights minister, Pablo Bustinduy, criticized the business model of companies like Airbnb, which, he said, “expel people from their homes” while allowing a few to profit from rising housing costs. Bustinduy’s comments echo the sentiments of many residents who feel that the rise of short-term rentals is contributing to the social and economic instability in their neighborhoods.

The Role of Short-Term Rentals in Tourism and the Local Economy

While the negative impact of short-term rentals on the housing market is clear, it is also important to consider the role that services like Airbnb play in Spain’s tourism economy. Spain’s tourism sector is a major contributor to the national GDP, and platforms like Airbnb have made it easier for tourists to find accommodations that suit their budgets and preferences. This flexibility has been particularly attractive to budget-conscious travelers seeking a more authentic and personalized experience.

For many tourists, staying in short-term rentals offers a more affordable alternative to hotels, especially in high-demand areas during peak seasons. Additionally, short-term rentals have helped to spread tourism beyond the main tourist districts, allowing visitors to experience different neighborhoods and regions that might otherwise be overlooked.

However, this convenience comes with significant trade-offs. The influx of tourists has led to rising rent prices and a shortage of housing for local residents. In some cities, the demand for short-term rental properties has resulted in entire neighborhoods becoming dominated by vacation rentals, fundamentally altering the character of these areas and displacing long-term residents. This shift is particularly evident in neighborhoods that were once known for their local charm and community atmosphere.

Government’s Response to Airbnb’s Violations

The fine against Airbnb is part of a broader effort by the Spanish government to regulate short-term rental platforms and ensure that they comply with local housing laws. In June 2025, the consumer rights ministry also ordered Booking.com to remove over 4,000 illegal rental listings in Spain, highlighting the growing crackdown on unregulated holiday rentals.

In addition to the fines, Spain has implemented a range of regulations aimed at curbing the proliferation of short-term rentals. These include stricter requirements for property licenses, limits on the number of rental properties allowed in certain areas, and closer scrutiny of rental platforms to ensure that they are complying with local rules. Local governments in tourist-heavy cities like Barcelona and Madrid have introduced additional measures to regulate the number of short-term rental properties, hoping to reduce their impact on the housing market.

Minister Bustinduy has emphasized that no company, no matter how large or influential, should be allowed to operate above the law. “We’ll prove it as many times as necessary: no company is above the law,” he said. The statement reflects the government’s commitment to addressing the housing crisis and ensuring that the benefits of tourism are distributed equitably across society.

Looking Ahead: A Balancing Act Between Tourism and Housing

The tourism boom has undeniably benefited the Spanish economy, but its impact on housing has become increasingly untenable for many citizens. Going forward, Spain will have to improve its strategy in regards to short-term rentals in order to ensure a balance between being a leading tourist destination and providing homes for Spanish residents.