(Bloomberg) -- Hungary plans to almost quadruple a tax on short-term rentals and to suspend new licenses for Airbnb Inc.-style apartments as Prime Minister Viktor Orban’s government moves to tackle a deepening housing crisis in Budapest.
A draft proposal would raise the levy on such rentals to 150,000 forint ($405) a month from just 38,400 forint, the Economy Ministry said in a statement Monday. There would also be no new licenses for short-term flats in 2025 and 2026, it said.
The restrictions, which would only apply in the capital, are designed to address soaring rental and property prices that have been partly fueled by the proliferation of flats on Airbnb and Booking Holdings Inc. Housing costs have almost quadrupled over the past decade in Budapest.
Residents of the city’s sixth district, one of the most popular areas for tourists, last month backed a total ban on short-term rentals from 2026, following years of complaints about noise, trash and rental cost increases. The district’s mayor has pledged to pass legislation by the end of the year in line with the result of the local referendum.
©2024 Bloomberg L.P.