Spain fines Airbnb $74M for listing unlicensed rentals

by · UPI

Dec. 15 (UPI) -- Spain imposed a fine on Airbnb for tens of millions for allegedly listing properties that were either prohibited or did not hold required operating licenses in a firm stance against short-term rentals.

Airbnb was fined more than $74.8 million, and the Spanish Ministry of Consumer Affairs announced its penalty was definitive and instructed the U.S.-based Airbnb to promptly take down its unlawful listings, the BBC and Euro News reported.

In May, Spain announced for the first time that it directed Airbnb to remove tens of thousands of unauthorized listings from its platform.

The fine amounts to six times the profits Airbnb earned from the listings during the period between the government's warning and their eventual removal.

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It comes as growing pressure on the Spanish government intensified to limit tourist accommodations amid a worsening housing shortage hitting major cities overwhelmed by high visitor numbers.

Last year in November, official figures showed that approximately 321,000 homes in Spain held holiday rental licenses -- a 15% increase compared to 2020.

Spanish authorities reported at least 65,122 Airbnb properties were found to be in breach of laws intended to safeguard renters and consumers.

Spain's Consumer Rights Minister Pablo Bustinduy, meanwhile, warned that "thousands of families are struggling to get by" due to Spain's housing crisis, which reflects the same issue around the globe including the United States, in Hong Kong and scores of others nations.

"Housing is the main problem for working families," he wrote on Bluesky.

He also criticized certain companies for exploiting "business models that force people out of their homes" for profit.

In June, Spanish authorities also directed Booking.com to delete over 4,000 listings that failed to comply with accommodation laws.

Earlier this year, Barcelona revealed its intent to eliminate all tourist apartments by 2028.

The move will effectively prohibit services such as Airbnb from offering short-term private rentals in residential areas in Barcelona.

City leaders contend that short-term rentals have since drained the character from local neighborhoods, displaced long-term residents and transformed entire areas to cater primarily to the tourism industry.

"That's why we're taking action by imposing a historic fine" on Airbnb, Bustinduy said Monday, "for violating consumer protection regulations. No major economic player is above the law."