Experts call for clearer rules as cities increase restrictions on platforms like Airbnb.
Efforts to regulate short-term rentals are gaining momentum in Brazil, following global governmental actions to curb or even halt operations dominated by platforms like Airbnb, as noted by experts. Key public policy considerations include zoning for operational areas, tax implications, and ongoing conflicts with the hotel industry, which claims these platforms encroach on its business model.
Historically in Brazil, discussions have primarily revolved around condominium usage. Legal battles have seen condo owners successfully securing rights to prohibit such rental platforms within their properties, though formal regulations remain pending.
The clash between city officials and the short-term rental industry is longstanding. Cities like Berlin have imposed restrictions since 2018, but the topic has resurfaced recently, with Barcelona enacting limitations to control tourism inflow.
Founded in 2007, Airbnb began when two hosts in San Francisco opened their home to three guests. The platform has since grown to accommodate five million hosts and 1.5 billion guests globally. In the first quarter of this year, Airbnb reported a revenue of $264 million, marking a 126% increase from the previous year. Other major players like Booking and Expedia have also ventured into this market.
Experts draw attention to an important global issue: the rising cost of rental housing, driven by the increasing mobility of professionals, including digital nomads.
“In Mexico, the housing market has seen prices soar due to American digital nomads, resulting in rental prices being set according to the incomes of these nomads rather than local residents,”
Valor International quotes Raquel Rolnik, a full professor at the University of São Paulo’s School of Architecture and Urbanism.
Ms. Rolnik stressed the urgency of regulating temporary rentals:
“It’s crucial to establish where these rentals are permissible, integrate them into urban planning legislation that pertains to commercial activities, and determine their tax obligations, registration processes, and registration locations.”
In Brazil, the impact of short-term rentals is still developing compared to what is observed in Europe, yet it has already drawn attention from Congress. The hotel industry vehemently opposes platforms like Airbnb, which hoteliers claim effectively operate as unregulated hotels.
“Airbnb is currently the biggest competitor for hotels in Brazil,”
said Manoel Linhares, president of the Brazilian Hotel Industry Association (ABIH).
Linhares further mentioned that the hotel industry is actively engaging with legislative bodies regarding the taxation of digital platforms as part of the ongoing tax reform. He emphasized the burden of municipal real estate taxes (IPTU), noting that the commercial rate is almost three times that of the residential rate. The sector is also subject to various municipal and state taxes.
“Many countries are scrutinizing this. If the government doesn’t intervene, we could soon see the demise of Brazil’s hotel industry,”
noted ABIH president.
In Brazil, the tension between condominium owners and the use of properties for services like Airbnb has escalated to the legal arena, with many seeking to restrict their buildings from being used for such purposes.
Brazil’s Superior Court of Justice has ruled that condominium agreements may indeed prohibit these types of rentals. Adding clarity to the ongoing issue, a proposed amendment in the draft reform of the Civil Code specifies that short-term rentals, referred to as “atypical lodging,” should only be allowed through explicit agreement.
Also under discussion is a proposal to to invert the current norm established by Brazil’s Federal Supreme Court, which allows renting unless explicitly prohibited by the agreement.
In response to these issues, Airbnb released a statement asserting its commitment to fostering economic growth in Brazil.
“Vacation rentals in Brazil are already governed by the Tenancy Law. Prohibiting or limiting these rentals infringes on the constitutional right to property,”
the statement reads. According to this legislation, seasonal rentals are allowed for up to 90 days, with no stipulated minimum duration.
Source: Valor International
