Budapest District I proposes ban on short-term rentals in Buda Castle

The Budavári Municipality has released a draft regulation that could lead to a total ban on short-term apartment rentals in the Buda Castle area starting January 1, 2028. Under the proposal, existing short-term accommodations in other parts of the first district would only be permitted with the consent of the apartment building's residents.

Violators could face significant penalties, including fines of 200,000 HUF for individuals and up to 2 million HUF for legal entities, alongside potential 45-day temporary closures. To allow for a transition, registered accommodations in the Castle District could continue operating until the end of 2027.

The move follows a local referendum where 58.6% of participants supported a ban on short-term rentals, with support rising to 66% specifically within the Castle District. The municipality stated the goal is to protect the residential function of the area and the peace of its inhabitants. A final decision by the representative body is expected in November.