In a landmark decision that sent shockwaves through the European short-term rental market, Barcelona announced in June 2024 that it would cease issuing new licenses to properties and not renew existing permits by November 2028, meaning that from 2029 no homes will have permission to be rented as tourist accommodation. This dramatic move, now upheld by Spain’s Constitutional Court, represents perhaps the most aggressive regulatory response to overtourism and housing shortages in any major European city.

However, while Barcelona’s approach has garnered international attention and concern from property investors, a similar blanket ban could never be implemented in Paris due to fundamental differences in how the two cities structure their short-term rental permit systems. Understanding these differences reveals why Barcelona had the regulatory tools to eliminate short-term rentals entirely, while Paris faces different constraints in managing its tourist accommodation market.

Barcelona’s Renewable Permit System: The Key to Control

Barcelona stopped issuing new tourist licenses for short-term rentals in 2014 in an effort to curb the rapid growth of vacation rentals, but the critical aspect of Barcelona’s system lies in the renewable nature of these permits. Unlike permanent authorizations, Barcelona’s tourist licenses operate on a renewal basis, creating natural expiration points that the city can choose not to extend.  By November 2028, all licenses for the city’s 10,101 tourist apartments will be revoked, effectively transforming these properties into long-term residential homes. This approach was possible precisely because Barcelona’s regulatory framework treats short-term rental permits as temporary authorizations requiring periodic renewal, rather than permanent property rights.

Paris: Permanent Commercial Classification Changes Everything

Paris operates under an entirely different regulatory philosophy that makes Barcelona’s approach legally impossible. To legally rent a secondary residence in a short-term capacity in Paris, the property must have both a “commercial” use designation and a short-term rental permit, both issued by the city of Paris. Once obtained, these designations are permanent rather than renewable.

In Paris, no new short term rental permits are being issued, making properties that already have the coveted short term rental permit an even hotter commodity than they were until now. However, the crucial difference lies in the permanent nature of these permits. Properties that have successfully obtained both commercial designation and short-term rental authorization maintain these rights indefinitely, without the need for periodic renewal that Barcelona exploited.

The commercial designation aspect particularly distinguishes Paris from Barcelona. Properties that already have commercial (or mixed use) designation are often former boutiques, ground floor courtyard apartments, artist ateliers, or other unusual spaces that were not originally designated for residential use. This commercial classification fundamentally changes the property’s legal status, transforming it from residential housing stock into commercial tourism accommodation.

The Legal Implications of Permanent vs. Renewable Systems

The distinction between renewable and permanent permits creates vastly different legal landscapes. In Barcelona’s system, the city retained ultimate control over short-term rental operations through the renewal mechanism. When Mayor Jaume Collboni announced the ban, he was essentially exercising the city’s existing authority to deny permit renewals rather than revoking established property rights.

In contrast, Paris’s permanent permit system creates what legal experts consider vested property rights. The status change is permanent: if the owner decides to just live in the property again, he or she must change the status back. This permanence means that attempting to revoke existing permits would likely face significant legal challenges as a taking of established property rights, unlike Barcelona’s approach of simply allowing permits to expire naturally.

Current Market Realities and Regulatory Responses

The different permit structures have created distinct market dynamics in each city. As the number of listings on Airbnb has fallen over the past decade in Barcelona, rents have risen by 70 percent, while the average price of a home has increased by 60 percent. Despite the regulatory restrictions, housing affordability challenges persisted, leading to the more dramatic 2028 ban.

Paris, meanwhile, has pursued different regulatory strategies within its permanent permit framework. Starting January 1, 2025, the limit for renting primary homes decreased from the current 120-day limit to 90 days per year, while all property owners desiring to lease their properties whether short term or long term have to comply with increasingly strict energy ratings. 

The European Context and Broader Implications

Barcelona’s approach represents one end of the regulatory spectrum in European cities grappling with short-term rental pressures. The European Cities Alliance on Short-Term Holiday Rentals – whose members include Barcelona, Berlin, Brussels, Budapest, Madrid, Paris and Eurocities – has said there must be a “balanced regulatory approach to the subject”. However, each city’s ability to implement dramatic measures like Barcelona’s depends entirely on their existing legal and regulatory frameworks.

The Barcelona model has already faced criticism from industry groups and the European Commission. The European Commission has raised concerns that the Catalan decree might breach the EU’s Services Directive, arguing that the restrictions are not proportionate or suitable for addressing the housing shortage. These challenges highlight the complex legal terrain surrounding dramatic regulatory interventions in the short-term rental market.

Conclusion: Regulatory Architecture Determines Regulatory Possibilities

The fundamental lesson from comparing Barcelona and Paris lies in understanding how initial regulatory choices shape future policy options. Barcelona’s decision to implement renewable permits created the legal mechanism for comprehensive phase-out, while Paris’s permanent commercial designation system provides different tools and constraints for market management.

While both cities face similar pressures from tourism and housing shortages, their different approaches to permit structure have created vastly different regulatory possibilities. Barcelona can eliminate short-term rentals entirely through permit non-renewal, while Paris must rely on other mechanisms such as time limits, energy efficiency requirements, and neighborhood-specific restrictions to manage its short-term rental market.

For industry observers and property investors, these differences underscore the critical importance of understanding not just current regulations, but the underlying legal frameworks that determine what future regulatory changes are possible. In the evolving landscape of European short-term rental regulation, the devil truly lies in these structural details.

Contact Paris Property Group to learn more about buying or selling property in Paris or to be introduced to a trusted mortgage professional.