Italy opposes EU proposal to limit short-term rentals

The Italian government is opposing a new European Union legislative package known as the ‘Affordable Housing Act’ to protect the national real estate and tourism markets. The proposal, introduced by European Commissioner for Housing Policy Dan Jørgensen, aims to establish common mathematical criteria for identifying areas under severe ‘housing stress.’

Under the proposed rules, local authorities and municipalities could gain clearer powers to limit or prohibit short-term rentals and the purchase of second homes in specific zones. These restrictions would be triggered if the average house price is at least eight times the average annual income and if this gap has steadily increased over the last decade.

Italy is seeking a national derogation or clause within the regulation to ensure individual states retain the freedom to decide whether to apply such limits. Minister for European Affairs Tommaso Foti has signaled a hardline stance to prevent what the government views as a top-down mandate that could paralyze the domestic property market. The move is also supported by Confedilizia, the primary association representing property owners.