Short‑Term Rental Regulations in Spain, Portugal, France & Italy – What Irish Investors Need to Know
Introduction
Short‑term holiday lets have become a popular way for Irish expats and investors to generate income from properties abroad. Yet, from 2024 onwards the four favourite Mediterranean destinations – Spain, Portugal, France and Italy – have introduced sweeping regulatory changes aimed at protecting housing affordability, improving tax transparency and curbing unauthorised listings.
This article breaks down the most important rules for each country, highlights where local authorities can add extra requirements, and offers practical steps to keep your overseas investment compliant. All figures are up‑to‑date as of November 2025.
1. Spain – The New “Ventanilla Única Digital de Arrendamientos”
| Aspect | What the law says | Practical impact for Irish owners |
|---|---|---|
| Registration | All holiday‑home (alojamiento vacacional) and seasonal rentals must obtain a unique rental code from the national “Ventanilla Única Digital de Arrendamientos”. The code is separate from the tourism licence. | Apply online via the portal by 1 July 2025. The code must appear on every advertising platform (Airbnb, Booking.com, etc.). |
| Fines | Failure to register can attract fines up to €500 000 and removal of the listing by the platform. | Non‑compliance is financially disastrous – treat the registration as a mandatory tax filing. |
| Who must register? | Any property advertised on a platform that accepts online booking and payment (Airbnb, Vrbo, Booking.com) – whole homes or individual rooms. | Even a single‑room let in a shared building needs a code. |
| Exemptions | Listings on sites that do not accept online bookings/payments (e.g., some local classifieds) are currently exempt, but most Irish investors use the major platforms, so the rule applies. | |
| Regional nuances | Autonomous communities can impose additional limits (e.g., caps on new licences in tourist‑heavy zones). | Check the local council’s website – Barcelona, the Balearics and the Costa del Sol have their own supplementary restrictions. |
| Enforcement | Municipalities can request proof of the code; platforms must block non‑compliant ads. | Keep a copy of the registration confirmation and the code number in your property management file. |
Key tip: Register early. The portal can be slow during peak periods, and the 60‑day response window for licence approval (extended from 10 days) means you could lose prime summer months if you wait until the last minute.
2. Portugal – A Liberalising Shift (but with local checks)
Portugal’s “Construir Portugal” programme, rolled out in October 2024, removed many of the restrictive measures that had crippled the short‑term market under the previous Mais Habitação plan.
| Aspect | Current rule (2024‑2025) | What it means for you |
|---|---|---|
| Licence expiry | The five‑year expiry clause was repealed – licences are now permanent unless the municipality revokes them. | No need to budget for renewal fees; keep the licence active by complying with local rules. |
| Transferability | Licences are again transferable (including corporate ownership). | You can sell a property with its licence or transfer to a family member without losing the right to let. |
| Condominium consent | The requirement for condominium approval for a short‑term licence has been scrapped, though building rules can still prohibit rentals. | You can apply directly to the council; however, review the building’s by‑laws to avoid future disputes. |
| Municipal “containment” & “sustainable growth” zones | Councils may designate containment areas (over‑concentration) and sustainable growth areas (monitoring) and set local limits on new licences. | In Lisbon, Porto and parts of the Algarve, new licences are currently suspended for six months while regulations are drafted. |
| Maximum guest capacity | The ceiling is now 27 guests per property (down from 30) with a 2‑person‑per‑room rule; extra (convertible) beds may not exceed 50 % of fixed beds. | Ensure your property’s layout complies; exceeding capacity can trigger fines or licence suspension. |
| Application timeline | Prior notification (pré‑notificação) now allows up to 60 days for council response (90 days in containment zones). | Factor this into your calendar – start the process at least three months before you intend to open the rental. |
| Tax regime | Short‑term rentals are taxed under the “Entrepreneurial” regime (IVA 23 % + IRC on net profit). No special tax relief for tourism licences. | Register for VAT if annual turnover exceeds €12 500 and keep detailed income/expense records for Irish tax reporting. |
Practical step‑by‑step
- Check the municipality’s website for any containment‑area declaration.
- Submit the online prior notification with property deed, insurance, and proof of tax registration.
- Await the council’s decision (up to 60 days).
- Once approved, display the licence number on all listings.
3. France – Tightening the Leash on Tourist Rentals
France introduced a series of measures in early 2024, culminating in a law passed by the National Assembly (January) and the Senate (May). The goal is to protect the housing market while still allowing owners of second homes to earn modest income.
| Regulation | Detail | Implication for Irish owners |
|---|---|---|
| 90‑day rule | A property may be let for no more than 90 days per year unless a special “tourist‑class” licence is obtained. | Most short‑term investors will stay within the 90‑day cap; exceeding it risks fines and licence revocation. |
| 120‑day cap in large cities | In municipalities with >200 000 inhabitants (Paris, Lyon, Marseille, Nice, Bordeaux, Toulouse, Cannes) the limit is 120 days for primary residences, with a €23 000 earnings ceiling. | If you own a flat in Paris, you can rent it up to 120 days, but must declare income above €23 k and register with the mairie. |
| Tax relief reduction | The deductible portion of rental income fell from 71 % to 30 %. | Expect a higher tax bill on French income; plan for the additional liability in your Irish tax return. |
| Long‑term housing obligation | Landlords must make the property available for long‑term rent (minimum 12‑month contracts) before qualifying for the tourist‑rental tax regime. | If the property sits empty for most of the year, you may lose the reduced tax treatment. |
| Mairie registration | Owners must obtain a “déclaration d’activité” (change‑of‑use permit) from the local town hall and display the registration number in all adverts. | The process varies by commune; some require a digital portal, others a paper form. |
| Local authority powers | Mayors can impose stricter caps, require a “tourist‑tax” collection, and enforce penalties up to €15 000 per breach. | Always verify the specific rules for the commune where your property sits (e.g., Biarritz vs. Marseille). |
| Social security (RSI) threshold | Rental income above €23 000 triggers registration with the French social security system and contribution payments. | Consider hiring a bilingual accountant to optimise contributions and avoid double taxation with Irish tax obligations. |
Compliance checklist
- Verify whether the commune requires a “change of use” (déclaration d’activité).
- Record the exact number of nights the property is let each calendar year.
- Keep receipts for all expenses (cleaning, utilities, platform fees) to support the 30 % deduction.
- Register with RSI if you exceed the €23 k threshold; file the required social contributions.
4. Italy – EU‑Driven Transparency and a National Rental Database
Italy’s short‑term rental landscape is being reshaped by two parallel developments: a national tax and licensing regime (Law No. 213/2023, effective 1 Jan 2024) and an EU‑mandated data‑sharing framework that will create a public National Database of Short‑Term Rentals (BDSR).
| Element | Current rule | What you need to do |
|---|---|---|
| CIN (Codice Identificativo Nazionale) | Every short‑term rental must display a CIN – a registration number issued by the municipality. | Apply for the CIN via the local Sportello Unico (single‑window) portal; display the number on all listings. |
| Tax regime | Entrepreneurial short‑let operators are subject to IVA 22 % and a flat 20 % income tax on net profit; no special “tourist‑rental” reliefs. | Register for VAT if annual turnover exceeds €65 000 and keep rigorous accounts for Irish tax reporting. |
| Municipal sanctions | Councils can impose fines for unregistered rentals, false advertising, or exceeding the permitted number of guests. | Monitor local council bulletins; non‑compliance can lead to daily fines of up to €5 000. |
| EU data‑sharing regulation (2024/1028) | Platforms must transmit property‑level data (address, CIN, capacity, dates) to a central EU database within 30 days of each booking. | Ensure your property manager uses a platform that complies; you will receive a confirmation of data transmission. |
| National BDSR pilot | Tests started June 2024 in Apulia, Abruzzo and Lombardy; the database will be publicly searchable, allowing anyone to verify a rental’s legal status. | Expect full rollout by 2026. In the meantime, retain the CIN certificate and be prepared for spot‑checks. |
| Capacity limits | No explicit national cap, but municipalities may set maximum guest numbers (often 6‑8 for apartments). | Verify the local ordinance; exceedance can trigger licence suspension. |
| Professional operators | 25 % of the market is managed by professional companies, which must hold an “operator licence” in addition to the CIN. | If you use a management company, confirm they have the operator licence; otherwise you remain personally liable. |
Strategic advice for Irish investors
- Choose regions with mature frameworks – Tuscany, Veneto and the Lakes area already have clear municipal guidelines, reducing bureaucratic risk.
- Document everything – keep the CIN receipt, VAT registration, and a copy of each platform’s data‑submission report.
- Plan for tax – the 20 % flat tax is higher than the French 30 % deduction but lower than the Irish marginal rate for many investors; a tax adviser can help optimise the split between Irish and Italian obligations.
Conclusion
The regulatory tide across the Mediterranean is moving towards greater transparency, stricter local control and higher tax compliance. For Irish expats and investors, the key take‑aways are:
- Register early – Spain’s national code, Portugal’s municipal licence, France’s mairie declaration and Italy’s CIN must all be secured before you list a property.
- Mind the caps – 90‑day limits in France, 120‑day caps in its major cities, and municipality‑specific ceilings in Portugal and Italy can dramatically affect revenue projections.
- Track taxes – reduced deductions in France, permanent licences in Portugal, and the flat 20 % tax in Italy mean you must keep meticulous accounts for both local and Irish tax returns.
- Watch local ordinances – especially in Spain, Portugal and Italy where councils can impose additional restrictions (containment zones, sustainable‑growth areas, guest‑capacity limits).
- Leverage professional help – a bilingual property‑law solicitor or a specialised management company can navigate the bureaucracy, keep your listings compliant and protect you from costly fines.
By staying ahead of the regulatory curve, you can continue to enjoy the financial benefits of short‑term rentals while safeguarding your investment against legal and fiscal surprises.
Happy renting, and may your overseas property bring you both profit and peace of mind.