Prague 1 has decided to intensify its monitoring of short-term rentals, as they often disrupt public order and affect residents in the city center. Based on a methodological recommendation from the Ministry of Regional Development (MMR), Prague 1 will better coordinate the cooperation of its central departments to enforce the legal obligations of operators of such services.
Renting accommodation via platforms like Airbnb often results in violations of legal regulations. Many operators do not have a business license, fail to pay income tax, social security, and health insurance contributions, do not register for VAT in accordance with legal requirements, do not pay local residence taxes, and fail to keep a guest register or a register of foreigners in accordance with the General Data Protection Regulation. In addition, many fail to register foreign guests with the immigration police as required by law. Proper waste disposal for guests is also often not provided at the operator’s expense. Furthermore, operators often misuse residential properties for short-term accommodation.
“Prague 1 will not expose its residents to an uncontrolled boom in short-term accommodation that turns our neighborhoods into places where peaceful living is hardly possible. These new measures will strengthen our ability to protect the interests of our citizens and the character of our historic city,” said the Mayor of Prague 1, Terezie Radoměřská.
The City Council of Prague 1 has therefore instructed the secretary of the authority to integrate the MMR’s methodological recommendations into internal processes. This enables the building authority to carry out direct inspections of flats and accommodation to ensure they are not being used in contravention of current legislation. Closer cooperation between the building, finance, and trade authorities will improve enforcement of regulations and ensure tighter control over the number and condition of accommodations in the city center.
“We support tourism, but we prioritize quality over quantity. We do not want to wait idly for the law regulating short-term accommodation to be amended, but instead want to take the necessary steps now. The key to a successful solution is active cooperation between the finance, construction, and trade departments. They know who has a license, who pays the relevant fees, and who has a registered business. By sharing this information, violations of the law can be effectively sanctioned,” said Giancarlo Lamberti, Chairman of the Finance Committee of Prague 1 and author of the proposal.
Prague 1 plans to inform the public about the steps taken in this area and to invite citizens to cooperate. A report with an overview of the measures and their impact will be submitted to the Prague 1 Council and the Committee Against Depopulation of the Center (Výboru proti vylidňování centra) at the end of the first quarter of next year.
