Spain’s Tough Stance on Airbnb: Huge Fine for Unlicensed Properties

Published on December 16, 2025

In a regulatory notice that is one of the biggest ever levelled at companies like short-term holiday rental sites, the Spanish government’s Ministry of Consumer Affairs has levied a massive fine of €65 million (or around £56 million) on the short-term rental platform Airbnb. The possible infringement of the tourism regulations occurred due to a probe that showed there were several thousand listings on the site which either did not have the legal license to be used as a holiday rental or were specifically forbidden from being let out to tourists.

The fine is the result of an extensive probe carried out on Airbnb’s activities in Spain, where it was discovered that the majority of the properties that had been listed on the website violated consumer protection laws in Spain. As a result of the ruling, the company is obliged to de-list the properties that had not been licensed, considering that the regions targeted include Barcelona, Madrid, and the coastal regions that have experienced a rise in the demand for short-let properties.

The Growing Tensions Between Tourism and Housing in Spain

Spain remains one of the most visited countries in the world, attracting millions of tourists every year. However, the tourism boom has led to increasing friction between visitors and local residents, particularly in cities like Barcelona, Madrid, and key coastal hotspots. The rising demand for short-term holiday rentals, facilitated by platforms like Airbnb, has been accused of driving up rent prices and reducing the availability of long-term housing options for local residents. This has resulted in many people being pushed out of central neighbourhoods, creating a housing crisis in some of the country’s most desirable areas.

The tensions between tourism and housing have reached a boiling point in recent years, leading to protests and calls for stricter regulations on short-term rentals. One of the most vocal critics of Airbnb’s practices is Pablo Bustinduy, Spain’s Consumer Rights Minister, who framed the recent fine as a defense of residents’ right to affordable housing. Bustinduy argued that families are being pushed out of their homes due to skyrocketing rent prices, while companies like Airbnb profit from the short-term rental market. He emphasized that no company, regardless of its size or power, should be allowed to operate above the law when it comes to such critical issues as housing.

Airbnb’s Response and the Legal Dispute

In response to the €65 million fine, Airbnb has expressed its intention to challenge the decision in court. The company maintains that its operations comply with Spain’s regulations and asserts that the Ministry’s actions are contrary to applicable laws in the country. Airbnb has pointed out that Spain updated its short-term rental laws in July 2025, and the company has been cooperating with the Ministry of Housing to support the rollout of a new national registration system for tourist properties.

Despite these claims, the Spanish government remains firm in its stance, pointing out that over 65,000 Airbnb listings in the country were in violation of consumer protection rules. This includes properties that either did not have the required licenses or whose license numbers did not match official government records. The government argues that these unregulated listings are contributing to the housing crisis and are undermining efforts to ensure that tourism benefits local communities without displacing residents.

The Impact on Tourists and the Future of Short-Term Rentals

For tourists planning to visit Spain, the recent crackdown on unlicensed short-term rentals signals a significant shift in the way the tourism industry will operate in the coming years. With stricter regulations in place, travelers will need to ensure that the accommodation they book is legally registered, which could potentially reduce the availability of affordable options in some areas. It is expected that licensed properties will become increasingly important as part of responsible travel, as travelers will need to be more diligent in selecting accommodations that comply with local laws.

The fines and removals could also lead to higher prices for legitimate short-term rentals. As more listings are removed from platforms like Airbnb, the available stock of legal properties could decrease, making those that remain more expensive. For tourists on a budget, this could mean fewer affordable alternatives to traditional hotels, especially in high-demand cities such as Barcelona and Madrid.

Moreover, travelers will likely need to adjust to a shift in the overall vacation experience in Spain. As tourist-heavy areas become more regulated, some of the once-popular residential neighborhoods in cities like Barcelona may lose the appeal they once had for travelers seeking an authentic local experience. The crackdown could also result in the relocation of tourists to areas with fewer short-term rental options, leading to overcrowding and further strain on local resources.

A Global Trend: Tightening Controls on Short-Term Rentals

Spain is not alone in tightening regulations on short-term rental platforms like Airbnb. Other major tourist cities worldwide, such as Paris, Berlin, New York, and San Francisco, have introduced stricter controls over short-term lets in recent years. The rise of platforms like Airbnb has transformed the travel industry by offering affordable and unique accommodation options, but it has also led to mounting concerns about housing shortages, rent hikes, and disruptions to local communities.

In Barcelona, where tourism is a key economic driver, local authorities have been actively working to combat the adverse effects of short-term rentals. The government has already introduced measures to limit the number of properties that can be rented out on a short-term basis, including requiring property owners to register their accommodations with the city. Despite these efforts, many critics argue that more needs to be done to protect local communities and ensure that tourism does not come at the expense of residents’ well-being.

Airbnb’s Role in Shaping the Future of Tourism

Airbnb’s rise has undoubtedly transformed the global tourism landscape, allowing visitors to experience destinations in a more intimate and affordable way. However, as cities grapple with the negative consequences of mass tourism, such as housing shortages and rising rents, the company’s role in the industry is coming under increasing scrutiny. The recent fine in Spain is just one example of the growing pushback against the unchecked expansion of short-term rentals.

As more cities around the world continue to impose stricter regulations on short-term rentals, Airbnb will need to adapt to these changes and work with local governments to ensure compliance. The company’s ability to collaborate with cities to create fair regulations that protect both tourists and residents will be key to its future success. If managed correctly, short-term rentals can continue to provide valuable economic opportunities for locals while maintaining the integrity of communities.

Navigating Spain’s Changing Tourism Landscape

A €65 million fine levied against Airbnb by Spain represents a critical juncture in the country’s efforts to rein in the growth of short-term rentals and safeguard local housing markets. For tourists, that will probably mean a more regulated-and more costly-rental market, but it also creates an opportunity to travel more responsibly. As governments around the world continue to balance the economic benefits of tourism with the needs of residents, the future of short-term rentals will depend on finding solutions that benefit both visitors and locals alike.

For visitors to Spain, the message is clear: travelers should prepare for more regulation and scrutiny of short-term rental listings. Conformity with local laws will be added to the growing list of considerations when planning a trip. More than ever, responsible travel is going to be paramount. It will be interesting to see how the rest of the world follows through with Spain’s lead in regulating such accommodation in this growing market.