Restrictions on short-term rentals: the end for Airbnb?

Vienna

The Viennese state legislature has been addressing this problem since 2018 and has imposed further restrictions on the short-term rental of residential space with the 2023 amendment to the Vienna Building Code.

Since 2018, the short-term letting of residential space in Vienna within a residential zone (Wohnzone) designated in development plans (Bebauungspläne) has only been permitted under certain conditions. Before 1 July 2024, the Vienna Building Code did not prescribe restrictions on short-term rental outside of residential zones. Since then, stricter regulations now also apply outside of residential zones.

According to the new legal regulations, it is permitted to temporarily rent out an apartment subject to the local tax (Ortstaxe) for a maximum of 90 days per calendar year. In addition, the landlord is not allowed to permanently relinquish their residence in this apartment. Those two restrictions apply regardless of the apartment's location in Vienna, whether within or outside a residential zone.

An exceptional permit is required for short-term rentals exceeding 90 days. Different approval requirements must be met depending on whether the apartment is located inside or outside a residential zone. Much stricter requirements apply for apartments within residential zones.

If you want to offer your apartment in Vienna for short-term rental, there are a few key requirements to consider. For natural persons, you can rent out the apartment for a maximum of 90 days per year, and you must maintain your residence in the apartment (note that offering the apartment through platforms like Airbnb is considered the same as renting it out). For legal entities, or if 90 days are not sufficient, you need to check the relevant development plan to determine whether the apartment is located within or outside a residential zone and apply for an exceptional permit from the competent authority, MA 37. Offering an apartment without the required exceptional permit could result in a penalty of up to EUR 50,000.

In summary, while the new regulations in Vienna do not mark the end of short-term rentals, they have made commercial short-term letting significantly more complex and restricted.

Czech Republic

Under Czech law, providers of short-term accommodation through platforms like Airbnb are currently limited primarily by the Construction Act, which stipulates that a building may only be used in a manner consistent with its use approved in the occupancy permit. The permits generally distinguish between residential (housing) use and use as an accommodation facility.

Although the line between these categories can be thin, according to case law, residential buildings are used to satisfy housing needs (i.e. more complex needs), whereas accommodation facilities are used for temporary stays. In general, accommodation facilities must meet stricter criteria, particularly regarding fire safety, than residential buildings. Occupants of residential buildings are typically more familiar with the property and, therefore, are better equipped to react quickly and effectively in the event of a fire. In contrast, short-term occupants are less likely to know the location of escape routes and emergency exits, which is why the post-fire safety requirements for accommodation (or units) are more stringent.

Providing accommodation for tourists in residential housing (instead of accommodation units) may be in breach of the Construction Act, for which a fine of up to CZK 1m (approx. EUR 40,000) may be imposed. Nevertheless, the conditions of the Construction Act are currently not being broadly enforced and provision of short-term accommodation in residential units is quite common.

Further restrictions on the provision of short-term accommodation in the Czech Republic are expected to follow. Draft legislation has been submitted to the Chamber of Deputies that would allow municipalities to set a maximum number of days for which a landlord can offer their apartment to tourists. It is expected that this would lead to significant restrictions imposed by municipalities on short-term accommodation in the Czech Republic.

authors: Clemens Rainer, Yvonne Kraudinger, Petr Korál, Aleš Procházka