Airbnb situation in Baltic and Nordic countries

Airbnb, a leading platform for short-term rentals, has encountered diverse regulatory landscapes across the Nordic and Baltic countries. Governments in these regions have implemented measures to balance the benefits of tourism with housing availability and community well-being.

Norway:

In Norway, regulations distinguish between different property types:

Sectioned Housing (Eierseksjon): Owners can rent out their units for short-term periods (up to 30 consecutive days) for a maximum of 90 days per year. Homeowner associations can adjust this limit to between 60 and 120 days with a two-thirds majority vote.
THELOCAL.NO

Housing Cooperatives (Borettslag): Members are permitted to rent out their homes for up to 30 days annually without board approval. THELOCAL.NO

Tax-wise, rental income up to 10,000 kroner is tax-free. For amounts exceeding this, 85% of the surplus is taxable at a rate of 22%. THELOCAL.NO

Sweden:

Sweden’s regulations vary based on property ownership:

First-Hand Rentals (Hyresrätt): Renting out an entire apartment requires written landlord permission. Unauthorized subletting can lead to termination of the rental contract. THELOCAL.SE

Cooperative Apartments (Bostadsrätt): Owners must obtain board approval to rent out their entire apartment. Many cooperatives have specific policies regarding short-term rentals, including potential limits on duration and frequency.
THELOCAL.SE

Tax regulations allow individuals to earn up to 40,000 kronor annually from rentals tax-free. Beyond this threshold, specific tax rules apply depending on the property type. THELOCAL.SE

Finland:

Finland’s major cities, including Helsinki, Turku, and Tampere, have introduced guidelines requiring “professional” Airbnb hosts—those who rent properties regularly without residing in them—to obtain special permits. This initiative aims to address concerns about housing shortages and ensure that properties meet safety standards. YLE.FI

Iceland:

In May 2024, Iceland’s parliament amended accommodation laws to restrict full-time short-term rentals in residential buildings. Licenses for such operations are now limited to commercial properties. However, individuals can still rent out their residences for up to 90 days annually or earn up to 2 million Icelandic króna (approximately €13,000). This measure seeks to alleviate housing shortages exacerbated by the proliferation of short-term rentals. EUROPEANCORRESPONDENT.COM

Lithuania:

Vilnius, the capital, entered into an agreement with Airbnb in February 2020, allowing the platform to automatically collect the city’s tourism tax from guests during the booking process. This collaboration aims to streamline tax collection and ensure compliance among hosts. Additionally, the Lithuanian Hotel and Restaurant Association has advocated for stricter regulations to address concerns about unregistered accommodations and unfair competition. BNN-NEWS.COM

Reasons for Regulation

Several factors have prompted these countries to regulate or even restrict Airbnb services:

Housing Availability: The conversion of residential properties into short-term rentals can reduce the housing supply for local residents, leading to increased rents and housing shortages. For instance, in Iceland, entire residential buildings in downtown Reykjavík were transformed into apartment hotels, prompting regulatory changes.
EUROPEANCORRESPONDENT.COM

Economic Fairness: Traditional accommodation providers, such as hotels, are subject to taxes and stringent regulations. Unregulated short-term rentals can create unfair competition, as they might not adhere to the same standards or tax obligations.

Community Impact: A surge in short-term rentals can disrupt local communities, leading to concerns about noise, safety, and the erosion of neighborhood character.

Airbnb and similar short-term rental platforms provide several benefits for travelers and destinations that lack traditional accommodation options. Here’s why they are valuable:

Benefits for Travelers
Increased Availability: In areas with limited hotels, Airbnb offers a wider range of lodging options, ensuring visitors can find a place to stay even in high-demand seasons.
Affordability: Short-term rentals are often more cost-effective than hotels, especially for longer stays or group travelers who can split costs.
Unique & Local Experience: Many Airbnb properties allow travelers to stay in local homes, offering a more authentic experience compared to standardized hotels.
Flexible Options: Unlike hotels, Airbnb listings can include entire homes, apartments, or private rooms, catering to different needs, such as families, digital nomads, or solo adventurers.
Access to Remote Destinations: Airbnb expands tourism to rural or off-the-beaten-path areas where hotel investments may not be viable.

Benefits for Destinations with Limited Accommodation
Tourism Growth: Short-term rentals can help destinations attract more visitors, boosting local economies through spending on restaurants, shops, and activities.
Income for Locals: Homeowners can earn extra income by renting out properties, supporting local economic development.
Flexibility in Infrastructure: Instead of requiring large-scale hotel investments, Airbnb allows destinations to scale their accommodation capacity based on demand without major construction projects.
Cultural Exchange: Visitors staying in local homes interact more with residents, promoting cultural exchange and a deeper connection to the destination.
Support for Events & Seasonal Peaks: In areas hosting festivals, sports events, or seasonal tourism (e.g., ski resorts, summer islands), Airbnb provides temporary accommodation solutions when hotels reach capacity.

While Airbnb has challenges related to housing availability and regulation, it remains a key solution for destinations struggling with insufficient lodging infrastructure.

In conclusion, the Nordic and Baltic countries have adopted diverse regulatory approaches to manage the impact of Airbnb and similar platforms. These measures reflect a broader effort to balance the economic benefits of tourism with the need to preserve housing availability and maintain community integrity.