Do you rent out an apartment? The new EU rules will certainly affect you. Here is what to expect

For Hungarian property owners, renting out an apartment is no longer a passive and easy source of income. It has become a risky business requiring serious legal and tax expertise.

Owners who have been renting apartments to foreign visitors without permits could be exposed by EU-wide monthly automatic data reporting. They may face substantial fines as authorities gain access to information about their activity.

The market cleanup could benefit legal, professional Hungarian accommodation providers by removing unfair competition. At the same time, moratoriums and local restrictions could sharply change the value and usability of affected properties. Some owners may have to sell, while others could return their apartments to the long-term rental market. That would increase supply and could somewhat reduce local rents.

Travelers, however, could see fewer accommodations and higher prices in popular European and Budapest neighborhoods. They will also need to be more careful before booking. Guests must check whether a property has an official registration number, or they could face a canceled trip if authorities later remove the listing during a raid.