Airbnb has slammed Spain’s new holiday rental rules, saying they won’t stop overtourism.

The short-term rental booking platform has hit out at the new restrictions, claiming that they will have severe consequences for Spanish income and jobs.

The Spanish government has introduced new regulations on short-term letting: Those wishing to rent out their properties must obtain a permit and register on a national database.

They will also be required to collect more information about renters, including bank details and personal identifiers. Spain has also proposed raising VAT on such properties to match hotels.

After the new law is fully enforced in July, property owners who fail to comply will face fines of up to £500,000.

Airbnb has warned that 400,000 jobs and almost £25 billion of income are being put at risk, Euronews reports. The company cites research by Oxford Economics in 2024.

The research found that 141 million nights were spent in short-term rentals in Spain in 2023. Hosts earned £4.5 billion, but the economy earned £25 billion through spending in shops, restaurants and local businesses.

“Excessive restrictions imposed on short-term rentals will not only be detrimental to hosts but also to rural development and commercial activity in small local businesses,” says Airbnb.

“They will also harm family tourism that simply seeks to find affordable accommodation in non-crowded areas, damaging Spain’s competitiveness as a family destination.”

Airbnb says 70 % of its bookings are for properties in rural or low-density urban areas.

“Airbnb’s role in promoting these rural experiences enhances the appeal of these destinations, empowers local communities, and encourages sustainable tourism practices,” concluded Oxford Economics.

Juliette Langlais, EMEA Public Affairs director at Airbnb, said that by staying in a holiday home, travellers discover new neighbourhoods and landscapes.

“By directing tourists away from crowded urban destinations where hotel supply, concentrated tourist flows and local challenges accumulate, short-term rentals have dispersed the benefits of tourism to local families and business in countless rural destinations.”

Airbnb and the Oxford Economics report both flag that implementing these restrictions could actually increase tourism to Spain’s already overcrowded cities and urban areas.

“These regulatory limitations are contributing to Spain’s tourism economy being heavily reliant on international hotel chains, super-concentrated in certain urban and coastal areas,” says Airbnb.

“This is fueling mass tourism and driving up accommodation prices for travellers, with little or no benefit to local families.”