One of the most popular tourist city in Europe is planning a freeze on Airbnb licences

Hungary 's government is reportedly considering a moratorium on new Airbnb licences and a tax increase on short-term apartment rentals in its capital city Budapest . According to a report by news agency Reuters, quoting the country's economy minister, "Hungary's government is considering a plan to impose a moratorium on new Airbnb licences in Budapest and to raise taxes on short-term apartment rentals in the capital city."

This comes in response to growing concerns about the impact of short-term rentals on housing prices and the character of the city. The announcement, made by Economy Minister Marton Nagy , follows a recent vote by residents in Budapest's sixth district to ban short-term rentals starting in 2026. This is the first such ban in one of Europe's most popular tourist destinations.

Why the big freeze on Airbnb licences
Budapest has seen a surge in short-term rentals in recent years, with Eurostat data showing it was the most popular city for such stays in 2023. The government's proposed measures aim to regulate the market and address concerns raised by local residents.

While no final decision has been made, Nagy indicated that the government is leaning towards imposing a moratorium and increasing taxes on short-term rentals in Budapest. He emphasised that the goal is to ensure that the short-term rental market is sustainable and does not contribute to housing affordability issues. "We are thinking about a possible moratorium and a tax hike in Budapest," Nagy reportedly said at a press briefing.

"The Airbnb market will change, and it is sure that it cannot grow further," he is reported to have added.

The proposed changes would not affect short-term rental properties outside of the capital city, and the government is currently negotiating with tourism industry trade organisations to finalise the details of the new regulations.