The Spanish government has fined short-term rental giant Airbnb €64 million ($75 million) for not having the relevant licenses for rentals, authorities said Monday.
It comes as Madrid tries to take action against the country’s housing affordability problem, as the issue worsens in Spain’s big city centres.
The country’s leftist government and many locals hold short-term rentals and the tech giants behind them partly responsible for rising housing prices, resulting in the most recent action against Airbnb.
According to Spain’s Ministry of Consumer Rights, the rentals did not include license numbers required for many regions of the country or listed numbers that differed from those of the authorities, with some providing incorrect information about the hosts.
Cities, governments fight housing prices
Spain’s consumer rights minister, Pablo Bastinduy, said in a statement that while many families are struggling to make ends meet, “some enrich themselves with business models that evict people from their homes.”
According to the ministry, the fine is equivalent to six times Airbnb’s profit from illegal listings.
This is the second highest fine ever imposed by the ministry for violation of consumer rights.
Bastindeau’s office already took action against Airbnb in May, as it ordered the removal of about 65,000 listings due to rule violations.
Barcelona authorities plan to take action against around 10,000 listings in the Catalan city, with a view to phasing them all out by 2028.
Other companies affected
Airbnb said it would take the Spanish government to court over the fine and was working with authorities to comply with local laws. The company said that seventy thousand rentals have added a license number since January and that it “believes” the move is against regulations in Spain.
Spain is one of the most visited countries in the world for tourists, with the country’s cities struggling to ensure that the impact on local residents and their housing costs remains low.
Other companies like Booking.com and Ryanair also face major fines by the Spanish government in 2024.
Edited by: Wesley Dockery