Short-Term Rental Restriction Zones - Can Your Municipality Ban Rentals?

Short-Term Rental Restriction Zones - New Municipal Powers

Short-term rental in Poland is entering a new era of regulation. Alongside the mandatory CWTON registration, one of the most controversial tools municipalities have received is the ability to create zones where short-term rental is restricted or banned. This mechanism could completely change the market in popular tourist locations. In this article, we explain how restriction zones work, which cities are considering them, how to check if your property is at risk, and what you can do if a zone covers your property.

What Are Short-Term Rental Restriction Zones?

Short-term rental restriction zones are designated areas within a municipality where short-term rental (up to 30 days) is completely banned or significantly restricted. This new municipal power stems from the implementation of EU Regulation 2024/1028, which gave member states the ability to introduce local regulations for short-term rental.

In practice, a municipality can adopt a resolution under which, in a specific area of the city:

• A complete ban on operating short-term rental
• A limit on the number of rental days per year (e.g., maximum 90 or 120 days)
• A requirement to obtain an additional permit for short-term rental
• A limit on the number of short-term rental properties in a given area

This isn't an abstract possibility - similar solutions already operate in many European cities. Amsterdam limited short-term rental to 30 days per year, Barcelona banned rental in parts of its districts, and Paris requires registration and limits rental to 120 days per year. Poland is just entering this path, but the direction is clear.

What New Powers Did Municipalities Receive?

The legislation implementing the EU regulation gave municipalities several new powers that take effect alongside the CWTON system. The most important ones are:

Right to Designate Restriction Zones

The municipal council can adopt a resolution designating zones where short-term rental is subject to restrictions or bans. The resolution must specify exact zone boundaries, type of restrictions, and effective date. This requires conducting public consultations and analyzing the impact on the local housing market and tourism.

Rental Day Limits

The municipality can introduce a limit on the number of days a given property can be rented short-term per calendar year. The most commonly discussed limits are 90 or 120 days, but the municipality has discretion in setting this threshold. After exceeding the limit, the property cannot be rented short-term for the rest of the year.

Local Permit System

Independently of CWTON registration, a municipality can introduce an additional requirement to obtain a local permit for short-term rental. Such a permit may be paid, time-limited, and subject to verification of the property's technical conditions.

Property Count Controls

In zones with high concentrations of short-term rental, the municipality can introduce a limit on the number of properties per given area. This mechanism, known from other European cities, aims to prevent situations where entire buildings or estates turn into quasi-hotels.

Which Cities Are Considering Zones?

Discussions about short-term rental restriction or ban zones are taking place in several Polish cities. While none has yet adopted a formal resolution (the regulations take effect only in May 2026), the debate is advanced.

Krakow

Krakow leads the discussion on limiting short-term rental. The Old Town and Kazimierz districts have struggled for years with the conversion of apartments to short-term rentals. Residents complain about noise, guest rotation, and degradation of community life. Councilors are considering a restriction zone covering the Old Town, Kazimierz, and part of Podgorze with a 90-day annual rental limit.

Warsaw

The capital has a specific situation - short-term rental is concentrated in Srodmiescie, Mokotow, and Praga-Polnoc. Discussions mainly concern introducing an additional permit requirement in the city center, rather than a complete ban. Warsaw authorities approach the topic more cautiously, considering the needs of business travelers.

Gdansk

Gdansk's Main Town is another flashpoint. The small old town area is saturated with short-term rental apartments, causing conflicts with residents and driving up long-term rental prices. Gdansk authorities have signaled interest in restrictions, especially in the strict city center.

Zakopane and Sopot

Resort tourism cities have their own specifics. Short-term rental is a significant part of the local economy here, but it also causes problems with infrastructure, parking, and housing availability for permanent residents. Discussions are less advanced, but the topic is present in local debates.

Wroclaw

Wroclaw is analyzing the situation around the Market Square and Cathedral Island. There are no specific plans yet, but the local government declares readiness to act if the situation requires it. City authorities are observing experiences of other European cities of similar scale.

How to Check if Your Property Is in a Zone

If you operate a short-term rental or plan to start one, you should regularly monitor the situation. Here are concrete steps to take:

Public Information Bulletin (BIP)

Every municipal council resolution is published in the Public Information Bulletin (BIP). Regularly checking your municipality's BIP will let you catch draft resolutions about restriction zones well in advance. Look for documents containing phrases like "short-term rental," "restriction zones," or "CWTON."

Public Consultations

Before adopting a resolution, the municipality must conduct public consultations. This means public announcement of planned changes and the opportunity to submit comments. Monitor the municipal office website and local press - consultation information must be publicly available.

CWTON Register

The CWTON system will contain information about restrictions in effect in a given area. After registering your property, you should receive notification if your municipality introduces new regulations. This is another reason to register as soon as possible - you'll have access to current information.

Industry Organizations

Join organizations representing short-term rental hosts, such as local host associations or social media groups. These communities are often the first source of information about planned regulatory changes and organize collective actions to protect hosts' interests.

Appeals Process

What can you do if your property falls within a restriction or ban zone? You have several options:

Complaint to the Regional Administrative Court (WSA)

A municipal council resolution is a local law act, which means it's subject to judicial review. You can file a complaint with the Regional Administrative Court (WSA) if you believe the resolution violates the law. Grounds for challenge may include:

• Lack of proper public consultations
• Disproportionate restrictions relative to the identified problem
• Violation of the equality principle (why this particular area?)
• Lack of adequate economic impact analysis
• Inconsistency with higher-level regulations

The deadline for filing a complaint is 30 days from the resolution's delivery or publication. It's worth consulting with a lawyer specializing in administrative law.

Petition and Citizens' Initiative

Before the matter goes to court, it's worth trying dialogue with the local government. You can submit a petition to the municipal council requesting modification or relaxation of restrictions. If you gather enough signatures, you can also submit a citizens' resolution proposal changing zone rules.

Transition Period

Many resolutions about restriction zones will include a transition period for existing properties. This means if you operate a short-term rental before the resolution takes effect, you'll have time to adapt to new rules or wind down operations. The length of this period depends on the specific municipality, but 6 to 24 months can be expected.

Changing Property Use

If a ban zone makes continued short-term rental impossible, consider alternative models. Medium-term rental (1-6 months) typically isn't subject to the same restrictions. Similarly, long-term rental or corporate rental may be possible even in short-term rental ban zones.

Impact on Existing Listings

Introducing restriction or ban zones will have far-reaching consequences for existing properties on the short-term rental market.

Immediate Effects

After a ban zone resolution takes effect, booking platforms (Airbnb, Booking.com, and others) will be required to block the creation of new listings in that zone. Existing listings will be subject to restrictions according to the resolution's provisions - this may mean setting a booking limit or complete listing withdrawal.

Impact on Property Values

Introducing ban zones can paradoxically have varying effects on property values. On one hand, properties in ban zones may lose value because they lose short-term rental earning potential. On the other hand, if zones effectively limit the supply of tourist apartments and restore residential function, long-term rental prices may stabilize or even decrease.

Demand Shift

European city experiences show that ban zones cause a shift in short-term rental demand to neighboring districts. This may mean that previously less popular tourist areas become more attractive for short-term rental hosts. If you have a property outside a planned ban zone, this could actually be beneficial for your business.

Market Consolidation

Regulatory restrictions always lead to market consolidation. Smaller operators for whom short-term rental is a supplementary income source may exit the business. Larger operators with resources to adapt to new regulations will gain a larger market share. This is a trend visible in all European cities that have introduced similar regulations.

How to Prepare

Regardless of whether your property is at risk of a ban zone, it's worth taking several preparatory steps:

1. Register with CWTON as soon as possible - registration gives you access to information about planned regulatory changes in your municipality
2. Monitor local policy - follow the BIP, public consultations, and municipal council sessions. Staying informed lets you react in advance
3. Prepare documentation - complete property documentation (fire safety, house rules, insurance) strengthens your position in potential negotiations with the local government
4. Diversify your business model - don't rely exclusively on short-term rental. Consider medium- and long-term rental as alternatives
5. Build neighbor relationships - many restriction zone resolutions are initiated by resident complaints. Good neighbor relationships can prevent conflict escalation
6. Join industry organizations - collective action provides greater bargaining power in talks with the local government
7. Consult with a lawyer - if your property may be at risk, it's worth having a legal strategy prepared in case restrictions are introduced

Summary

Short-term rental restriction zones are a new, powerful tool in the hands of local governments. While no Polish municipality has yet adopted a formal resolution, discussions are advanced and the first decisions can be expected in 2026 or early 2027. The key is being prepared - both legally and business-wise. CWTON registration, complete property documentation, and awareness of local regulations are the foundation on which you can build your ongoing strategy.

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