Short-Term Rentals in Budapest in 2026

Budapest’s short-term rental landscape has undergone significant change heading into 2026. Driven by concerns about housing affordability, overtourism and the impact of platforms like Airbnb on residential neighbourhoods, both national and local regulations are reshaping how hosts can operate. 

1. City-wide Moratorium on New Short-Term Rental Registrations

In a major regulatory shift, Budapest has imposed a moratorium on new short-term rental registrations across the entire city through December 31, 2026. This means:

• No new STR registrations can be submitted for housing units intended for short-term stays during this period.
• Properties that already had valid registrations before January 1, 2025 may continue to operate, provided they remain compliant with national reporting and tax obligations. 

This rule is part of broader efforts to ease pressure on the housing market by slowing the growth of tourist-oriented rentals that compete with long-term residential supply. 

2. District Level Bans: Terézváros (VI. District)

One of the most significant local changes took effect on January 1, 2026, when Budapest’s 6th District (Terézváros) implemented a complete ban on short-term rentals. Under this local decree:

• Short-term rental activities (e.g., Airbnb, Booking.com listings) are prohibited in all non-hotel, private residences.
• Inspections are being carried out jointly by the local government, police and tax authorities.
• Violations can lead to fines of several million forints. 

The ban stems from a local resident vote and was upheld as lawful by Hungary’s Supreme Court. Officials argue it protects the peace and housing availability for full-time residents. 

3. Stricter Rules in Other Districts

Terézváros isn’t the only area tightening STR rules:

Erzsébetváros (VII. District) has introduced regulations that have effectively blocked most new STR licenses in residential buildings by imposing strict building and usage criteria that most existing residential units cannot meet. Existing permitted listings can continue, but expansion of the STR market there is severely constrained. 

Other districts are evaluating similar measures or have already moved to limit STR operations, often by restricting issuance of new permits or setting tight operational requirements.

4. Taxation and Administrative Compliance

Alongside operational bans and moratoria, Hungary has also adjusted the tax regime for short-term rentals:

• The annual flat-rate tax for short-term rentals in Budapest was significantly increased, which raises the cost of operating even fully compliant listings. This change impacts net profitability for hosts and investors. 

Hosts who continue to operate (especially older listings registered before the moratorium) must ensure they:

• Maintain proper registration and display any required numbers.
• Comply with reporting obligations, including tax declarations.
• Follow any condominium or district-specific information requirements, where relevant. 

5. What This Means for Property Owners and Investors in 2026

The regulatory environment in Budapest in 2026 represents a shift away from short-term tourism rentals toward long-term residential use:

• Investment strategies are adapting: Many former STR units are being converted to long-term rentals due to reduced profitability and rising risk of regulation. 
• Stronger long-term rental market: Greater supply of full-time rental units may help ease rental price pressures and attract tenants seeking more stable housing. 
• Localized compliance is essential: Because rules differ by district, property owners must check specific local laws before planning or continuing STR operations.

Conclusion

As of 2026, short-term rental regulations in Budapest are at a turning point. A city-wide moratorium on new STR registrations, district-level bans like in Terézváros, and stricter local operating rules mark a new era in how the capital balances tourism with long-term community needs. Property owners, hosts and investors are advised to stay current with evolving regulations and consider shifting focus toward long-term rental strategies where possible.