Proposed Compromise amidst Budapest’s Pending Short-term Rental Ban
Short-term housing has become a hot topic in Budapest, especially in the inner districts of the city. With the rise of platforms like Airbnb, visitors are increasingly opting for short-term rentals to experience life as a local. However, this trend has sparked a debate among trade associations, tourism officials, and city authorities.
Some argue that a total ban on short-term rentals would have negative consequences on the city’s economy, particularly impacting businesses in the restaurant, attraction, and airport sectors. To address this issue, trade associations have proposed a compromise that includes a moratorium on new short-term rental operating licenses until 2026.
This temporary halt would allow for an impact study to be conducted, analyzing the effects of short-term rentals on both the tourism industry and the housing market. The results of this study, expected by the end of January 2025, would serve as a basis for future regulations.
In terms of regulation, the associations suggest maintaining the flat-rate taxation system but updating the tax and calculation methods. They also recommend limiting the capacity of the short-term rental market through tighter qualifications or restrictions on rental days.
Overall, the goal of these proposals is to find a balanced approach that considers the needs of tourists, locals, and businesses. By implementing these measures, stakeholders hope to tackle concerns of over-tourism while preserving Budapest’s vital tourism industry.
