Spain fines Airbnb millions over illegal rental listings

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Spain has fined Airbnb £56 million (€64 million) for promoting tens of thousands of properties that lack proper licenses or are outright banned from being rented to tourists.

The penalty requires the company to remove advertisements for unlicensed properties. While officials say the penalty cannot be appealed, the rental platform plans to fight the decision in court.

Spain ranks among the world’s most popular tourist destinations, but its thriving tourism industry has created serious housing problems for local residents. High demand from holidaymakers has driven up property prices, making it increasingly difficult for local people to afford homes in their own cities.

“There are thousands of families who are living on the edge due to housing, while a few get rich with business models that expel people from their homes,” explained Pablo Bustinduy, Spain’s consumer rights minister.

The government identified over 65,000 Airbnb advertisements that violated consumer protection laws. Violations included promoting properties without rental licenses and listing properties whose registration numbers didn’t match official records.

Airbnb has disputed the government’s actions, arguing that the ministry’s approach conflicts with Spanish regulations. A representative noted that since Spain updated its short-term rental rules last July, the company had been “working closely” with Spain’s Housing Ministry to comply with the new national registration system.

Spain’s aggressive stance reflects growing worldwide concern about how holiday rentals transform neighbourhoods. Cities from Barcelona to New York, Berlin to Paris—and even San Francisco, where Airbnb launched — have imposed strict limits on short-term rentals.

The platform exploded in popularity around 2014, offering tourists affordable alternatives to hotels while allowing property owners to earn money by renting spare rooms. However, complaints about disruptive parties and absentee landlords have prompted many cities to regulate the industry more heavily.

Spain has been particularly active in confronting Airbnb. The country has banned thousands of listings and limited how many properties the company can advertise. Last May, protesters demonstrated against the platform just before the busy summer tourism season.

Mr Bustinduy emphasised the government’s determination on social media: “We’ll prove it as many times as necessary: no company, no matter how big or powerful, is above the law. Even less so when it comes to housing.”

The conflict echoes the tension between tourism’s economic benefits and its impact on local communities, a challenge facing popular destinations worldwide.

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