Pay to have empty apartments? The new recommendation from Brussels

BrusselsBrussels considers the housing crisis to have become an "urgency". In the last ten years, the purchase price has risen by an average of more than 60% and the rent price by 20% across the European Union. While one million Europeans are homeless, 20% of the housing stock in community territory is empty.

For this reason, together with the affordable housing law presented this Wednesday, the European Commission has issued a series of recommendations so that member states can face this crisis. Standing out from the list is the proposal to impose a fiscal penalty on empty buildings. "Throughout the Union, a significant part of the housing stock is empty, used as a non-primary residence, or is underoccupied," the text states. Therefore, it suggests that administrations study the application of "tax systems" that incentivize the long-term residential use of empty buildings in strained areas. A measure that has already been applied in Catalonia since 2022.

The recommendation aligns with European initiatives to incentivize the transformation, rehabilitation, or change of use of empty buildings into housing. But the document stresses that it is not enough to restrict the uses of the existing stock, but that construction must be encouraged. "Increasing the supply of housing, in particular social and affordable housing, would contribute to alleviating the pressure on real estate markets," it notes.

Therefore, it also urges simplifying the legal framework. In the Commission's view, it is necessary to reduce the processing time for licenses, since often "rehabilitation, change of use, densification, expansions, or subdivision of housing" can be hindered or slowed down by legal issues or "unfavorable tax rules". In this sense, it calls for diversifying the legal profiles of housing developers to go beyond traditional municipal, state, or private actors, and to open the way for cooperatives, community land trusts (community land trusts), limited-profit enterprises, or non-profit entities.

Application in Catalonia

The new affordable housing law provides a legal framework for administrations that wish to impose restrictions on the housing market. It endorses, for example, restricting second homes and limiting tourist apartment licenses. "When the market fails to offer something as fundamental as an affordable home, public authorities have the responsibility to act," declared the Vice-President of the Commission for a Clean, Fair and Competitive Transition, and minister of the Spanish government in this field, Teresa Ribera, during the presentation.

The Commission has made it clear that the new regulation will not have an effect on measures that are already in force. Thus, the rule that will allow the elimination of tourist licenses in Barcelona starting in November 2028 would not be subject to the European framework. On the other hand, the law that the Government is preparing against speculative buying is not shielded. If it is approved after the European regulation enters into force, it will have to comply with the requirements of the community norm.