A move by Hungary could end up costing tourists a lot more to visit Budapest

Hungary is ramping up its measures to control overtourism in Budapest by nearly quadrupling the tax on short-term rentals.

According to a Bloomberg report, Hungary’s government announced plans to significantly increase the tax on short-term rentals and freeze new licenses in a move aimed at curbing Budapest’s rising housing costs. According to a draft proposal by the Economy Ministry, the monthly tax on rentals like those listed on Airbnb will increase from 38,400 forint to 150,000 forint ($405). Additionally, no new licenses will be issued for such properties in 2025 and 2026.

The new measures will apply exclusively to Budapest, where escalating housing costs have been partially driven by the growth of short-term rental platforms like Airbnb and Booking.com. Property prices in the Hungarian capital have almost quadrupled over the last decade, intensifying concerns about affordability for residents.


Last month, residents of Budapest’s sixth district, a popular tourist hub, voted in favor of a total ban on short-term rentals starting in 2026. Noise, waste, and higher rental prices have been among the chief complaints from locals. In response to the referendum, the district’s mayor committed to passing new regulations by the end of this year.

The government’s restrictions form part of broader efforts to manage overtourism and stabilize the property market in Budapest.

Other European countries are also grappling with overtourism and implementing targeted strategies. For instance, Greece plans to introduce cruise ship limitations at major destinations like Santorini starting in 2025 to alleviate environmental and infrastructure stress.

The Greek government is also incentivizing long-term rentals by exempting landlords from rental taxes for three years if they switch away from short-term leases. New taxes on accommodation and tourism during peak seasons have also been introduced to support sustainable tourism and address housing challenges.

These measures reflect a growing trend across Europe, as popular destinations seek to balance tourism growth with the preservation of local communities and ecosystems. Similar discussions are underway in other cities, such as Amsterdam and Barcelona, to limit tourist numbers and reduce the impact of short-term rentals on housing markets.

The goal is to ensure that tourism remains economically beneficial without compromising the quality of life for residents and the sustainability of the environment.