New laws for short-term rental regulation in Prague: how will the new measures affect the local population and tourism industry

The Czech government has introduced new regulations aimed at regulating the short-term rental market, which includes platforms like Airbnb, Booking.com, and similar. This initiative is a response to the growing problems faced by local communities, particularly in Prague, where mass tourism puts pressure on the real estate market, leading to high rental prices and reduced availability of apartments for local residents.

One of the key objectives of the new law, which is set to come into effect in July 2025, is to give municipalities and cities greater control over the number of available short-term rentals. This includes limiting the number of days per year during which a property can be rented out to tourists, as well as introducing minimum standards for the size of accommodation units. These measures are intended to prevent an excessive number of apartments from being used for tourist rentals, thus allowing more residential space for local residents.

Additionally, a new registration system is being introduced through the eTurista platform, where all accommodation providers will be required to register their properties and guests. Each property will be assigned a unique registration number that must be displayed in advertisements. This will enable authorities to better monitor the market and help curb unregistered rentals, which currently represent a significant problem in the Czech Republic. Estimates suggest that between 40 and 70 percent of rentals through these platforms are unregistered, which could result in an annual loss of up to 32 million euros in tax revenues.

Prague, one of the most popular tourist destinations in the Czech Republic, is particularly affected by these issues. A large number of apartments in the historic city center are used for short-term rentals, leading to rising real estate prices and reduced quality of life for local residents. The new regulations will enable city authorities to more strictly regulate this market, including the possibility of increasing local rental fees.

In addition to rental market regulation, Prague has already implemented a number of measures to reduce noise and disturbances caused by tourists. In July, a ban on car entry into the historic city center during nighttime hours was introduced as part of a broader plan to reduce noise and improve the quality of life for local residents.

These regulations, which follow the example of similar measures in cities like London, Paris, and Amsterdam, aim to strike a balance between the needs of local communities and the demands of the tourist market. While the implementation of these measures will require some time and adjustments, it is expected that they will lead to improved quality of life in tourist areas in the long run and ensure a fairer system of taxation and regulation of short-term rentals.