On 16 November 2023, the Council and the European Parliament announced an agreement on the EU Regulation on the regulation of short-term rental tourism (STR). The development of online services and the collaborative economy has boosted the rental of rooms and homes for short periods of time, usually through online platforms such as booking.com, airbnb.com or expedia.com.

The proposed regulation aims to increase transparency in the field of short-term rental of accommodation and to help public authorities regulate this increasingly important segment of tourism worldwide.

The new rules will help establish a level playing field between short-term rentals (STRs) and traditional accommodation units. In the new form, the regulation addresses provisions regarding:

• Registering and classifying accommodation units through a simple procedure, so hosts will receive a registration number, based on which they will be able to rent out their property on online platforms. The relevant authorities will know the identity of the host and will be able to verify their activity based on this information.
• Rental services will be safer, with online platforms ensuring that the host’s registration number allows users to identify the property on the list and that the information provided is reliable and complete. Platforms will have to make “reasonable efforts” to conduct random checks on this information. Competent authorities can suspend registration numbers, require platforms to remove illegal accommodations, or impose penalties on platforms or hosts that do not comply.
• Data transmission – the state must establish a single digital reporting point (portal) to periodically receive data from online platforms on the activity of hosts. Reporting will be done monthly or quarterly, depending on the size of the digital platform. These data will be used to centralize statistical data and will allow public authorities to better assess/monitor the situation – both in terms of compliance with regulations, classification, payment of taxes, as well as the quality of the tourism product offered to customers.

Moreover, starting January 31, 2024, digital platform operators will be required to report to tax authorities information about active sellers on their platforms, with the implementation of DAC 7 regulations, the latest European Directive that aims to combat tax evasion and provide a dimension to revenues generated through digital platforms.

The provisional agreement supports the main objectives of the relevant provisions of the Digital Services Act – Regulation (EU) 2022/2065, which entered into force on 16 November 2022, and the Services Directive.

The new STR regulation would apply 24 months after its entry into force, to allow for the development of the IT infrastructure necessary for national reporting and interconnections.

FIHR believes that state entities now have the opportunity to implement the provisions, according to this regulation, with multiple benefits. In addition to an increase in information transparency, which will allow a clear highlighting of the contribution of the tourism sector to the national economy, strategies based on updated figures will be able to be developed, this implementation producing positive financial effects in the public budget. Exiting the gray area of income recorded by individual short-term rental units will lead to an increase in public revenues from taxes and duties. Such revenues could become a viable source of financing for the National Destination Management Organization, which is currently missing, although it is provided for by law, its existence being imperative in the implementation of the National Tourism Promotion Strategy.

"We believe that this moment will redefine the dynamics of the tourism market, when the authorities will adopt the provisions of this regulation through national legislation, in order to apply fair conditions for all operators in the field..” declared Simona Constantinescu, President of FIHR.