Ref. Ares(2019)1576426 - 08/03/2019
Ref. Ares(2019)1879442 - 21/03/2019
DRAFT PRINCIPLES ON REGULATION OF SHORT-TERM RENTAL
The col aborative economy and short-term rental offer Europe some unique, new opportunities for growth,
sustainability and equality. Opportunities that we need. And they are right in front of us.
Short-term rental provides a major increase in the available capacity of accommodation and invites tourists inside
our homes giving guests an authentic experience. Tourism, we all agree, provides hundreds of thousands of jobs,
restaurants, shops, guests in the museums, airline-offers etc.
Highest number of beds
In Europe, tourism accounts for up to 10 percent of the economy and the short-term rentals represents by far the
highest number of available beds. Short-term rental contributed to the recovery of Berlin after the fal of the Berlin
wal and today the city attracts thousands of guests to the old apartments. In the old city of Stockholm, where new
buildings cannot be built, people are invited into the Swedes homes where there is a spare room. In Croatia, they
have taken up the competition with the other Mediterranean destinations thanks to the huge capacity of primary
homes for rent in the summer-time.
Equality and inclusion
And tourism has become an opportunity for everybody. The student can travel to Paris, to Mal orca and to Rome
just as she or he prefers even on tight budget. Everybody can participate in the tourism community even if they are
not a hotel owner, just by renting out a spare room. And as a rural community you don’t need to be a capital or a
top-destination with big hotels in order to be part of the booming tourism sector – you can compete by using
existing houses and apartments. Today you do not need to be a wealthy traveler, big mogul or a big destination to
engage in tourism.
Sustainability is crucial
Tourism just as the rest of the planet must be mindful of its resources. With short-term we do not need to build
one more building to meet the growing demand in tourism, because it is sustainable. When the house is empty
anyway we can put it to better use and properties in rural areas or in cities can be put into use in the tourism
sector. Tourism wil grow in the coming years – and one answer is by using our building capacity more intelligently
and sustainably.
Fair regulation for all
Rules must be adapted to the new reality. Like the internet provided transparency and new intel igent
opportunities to the market, regulators must use the new opportunities to create new tools of regulation that are
simple, straight forward easy to understand and comply with. In Europe, we need clever notification schemes, fair
taxation, good consumer protection, safety measures, affordable housing, and livable city environments. We must
avoid fragmented policies with very different approaches around Europe and even from one region to another.
Short-term rental is part of the solution
Many of the advocates for more regulation on short-term rental are concerned with protecting their own business
rather than with ensuring tax-payment to the society or to protect the consumers. That is legitimate, but it is not
relevant for regulation to protect one specific part of business. We within the short-term rental sector are sure
that we can provide solutions so that what the tourists and consumers demand is wel protected, just like the
interests of society. But most of al , the doors to the col aborative economy should not be closed. These new
opportunities wil drive job creation, innovation and prosperity in the years to come because they deliver growth,
equality and sustainability.
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5 PRINCIPLES OF A CENTRAL IMPORTANCE TO FUTURE REGULATION
Notification schemes
CURRENT SITUATION
EHHA’s PROPOSAL
EXAMPLES TO CONSIDER
Society needs information about the
• In many European countries,
ü Due to a simple, clear and easy
range of short-term rental activities.
there are no need of notification
notification scheme imposed by
schemes.
the Portuguese law, the number of
Many cities or regions impose
• Any kind of notification scheme
registered short-term rental units
different systems without taking into
should
be
online,
simple,
has tripled from 11.000 to 36.000
consideration that many who rent
automatic, easy to understand
STR units during the last 2 years.
out their property are private
and comply with.
ü Due to unclear laws In December
persons and do it on occasional basis.
• Any such scheme should serve a
2016 a Spanish court annul ed a
specific
necessity,
be
a
large fine imposed by a regional
Many
different
schemes
are
proportionate measure and be a
government because no laws were
implemented around Europe which
matter between the host and the
violated.
creates fragmented and unnecessary
public authorities.
ü Some
online
intermediaries
regulation.
• Online intermediaries provide a
already indicate a registration field
neutral hosting service and
in cases where this is an obligation
cannot be held liable or be forced
for the owner.
to actively search for il egal
ü In cases of illegal activity on their
activity on their market places as
market
places,
online
specified in the E-Commerce
intermediaries already comply
Directive.
If
enforcement
with “Notice and Take Down”
authorities notify platforms about
procedures after notification from
illegal activity they shal take
authorities as indicated by the E-
appropriate
measures;
also
Commerce Directive.
known as ‘Notice and Take Down’.
• Authorisation schemes are not
appropriate regulation for STR.
• There is a need for data of STR in
Europe which the European
Commission together with the
industry can provide.
Taxation
CURRENT SITUATION
EHHA’s PROPOSAL
EXAMPLES TO CONSIDER
Tax authorities are looking for models
• Simple, straightforward and fair city
ü Some companies already col ect
to ensure that both tourist taxes and
tax systems should be put in place
tourist
tax
after
voluntary
rental income taxes from peers are
to allow for easier col ection of
agreements with authorities.
col ected correctly.
relevant tourist or accommodation
ü Estonia installed an innovative 1
taxes.
click on-line taxation declaration
for
col aborative
economy
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In France around 2,000 local tourist
• Collection of personal income tax is
platforms users in the transport
taxes exist, which makes col ection
a matter between the host and the
sector. The number of users
extremely challenging.
taxation authorities.
increased by 4 times.
• Governments should simplify and
Many tourist taxes are not adapted to
communicate the personal income
short-term rental accommodation.
tax rules in a simple and
straightforward way.
Thresholds - peers vs. non-peers
CURRENT SITUATION
EHHA’s PROPOSAL
EXAMPLES TO CONSIDER
Member States apply a number of
• Any threshold put in place must be
ü The thresholds on short-term
different restrictive thresholds on
proportionate, non-discriminatory
rental in Berlin have been declared
STR:
maximum
number
of
and justified by a legitimate
unconstitutional by court as well as
properties/rooms and people staying
objective.
the declaration of the minimum
(BE, ES, NL); maximum and minimum
• Thresholds only attempting to limit
period of 5 days provided by the
number of days (BE, UK, ES, IE, NL);
competition to other types of
Madrid Decree.
different types of residence (primary
accommodation and limiting the EU
ü The Superior Court of Justice of the
residence vs secondary residence)
freedom to freely provide services
Canary Islands ruled that excluding
(FR); presence of hosts while renting
and do business must be removed.
holiday home rentals from tourist
out the property (BE); different types
• The differentiation between peers
areas lacks legal coverage in the
of space to be rented (flat vs room)
and non-peers (professional is a
Law on Tourism on the Canary
(ES); frequency and activity purpose
misleading wording) is mainly
Islands
and
violates
the
(IE); minimum number of days’ break
related to taxation issues and
fundamental EU freedom to
between rentals (IT); living purpose of
should not be restricting business
provide services without being
the flat and percentage of the surface
and enterprise.
justified for reasons of public
rent (DE).
• Any unwanted effects in specific
order.
areas of cities should be treated
ü Too restrictive threshold as limits
locally without imposing the same
on secondary homes like in Paris or
rules in areas which are not
specific demands on short-term
exposed to the same problems.
rental units in Brussels are not
aligned with the European laws.
Safety and Security
CURRENT SITUATION
EHHA’s PROPOSAL
EXAMPLES TO CONSIDER
STR already comply with safety
• An apartment used occasional y for
ü Many countries have minimum
requirements such fire regulations for
tourists needs regulations designed
requirements on safety.
the simple reason that the building
and applied in a proportionate and
ü There is a minimum set of safety
units already have restrictive rules as
considered way.
criteria in Portugal: STR has to
first and second homes.
• Consumers should be adequately
have a fire extinguisher, a
Property used for STR is already
protected by current legislation on
complaint book, an exit sticker,
subject to regulation – either through
buildings.
contact details of the owner and
locally-approved fire regulations,
emergency numbers.
building codes or rules governing
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short-
or
long-term
paid
ü The Scottish Small Sleeping Fire
accommodation.
Regulations is as a proportionate
application of the Fire Regulations.
Consumer Rights Protection
CURRENT SITUATION
EHHA’s PROPOSAL
EXAMPLES TO CONSIDER
Members States impose different • EHHA highlights the importance to
ü STR industry is regulated by the
consumer protection schemes and
separate services provided via on-
demand from consumers and must
create a fragmented nontransparent
line intermediaries:
comply with their needs.
situation for consumers as wel as
1. The first service is provided by
ü Existing studies show very few
business but more than any new rules,
the online platform itself as it
consumer complaints on STR.
users need simple and easily
provides the infrastructure for
ü In Barcelona complaints from
understandable rules.
the conclusion of a contract
neighbors are at 0,02% of stays.
STR is already covered by consumer
between
different
users.
The figures presented account for
laws and principles.
According to the E-Commerce
a total of 50 complaints being filed
Directive this service is being
per month regarding tourist
acknowledged
as
an
apartments in the entire city of
“information society service”
Barcelona.
and it is also subject to
ü Research undertaken by some of
requirements set out by the
the
European
Consumer
Unfair Commercial Practice
Organisation’s (BEUC) member
Directive. Where a contract is
organizations shows that many
concluded between the online
consumers in Belgium, Spain, Italy
platform and a consumer, the
and Portugal are very satisfied
Directives on Consumer Rights
(62% in Italy to 85 % in Belgium)
and Unfair Contract Terms wil
with
col aborative
economy
apply.
solutions as it gives them access to
2. Depending on the legal status
cheaper, more convenient and
of the service provider (i.e.:
tailor-made services.
whether it is a trader or not)
and on the nature of the
service, different legal regimes
wil apply. EU consumer
protection rules only apply to
the legal relationship between
traders and consumers. If the
service is provided by a peer to
a consumer (P2C or C2C), EU
consumer rules do not apply,
and the provision of service is
regulated national civil law.
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