Short-term lets: the EU Court of Justice says they can require authorisation where housing is short

On 22 October the Court of Justice of the European Union decided case C-813/24, which arose in Brussels: a short-term letting company had been refused authorisation for a tourist accommodation facility, and the Belgian Court of Appeal asked whether a prior-authorisation scheme was compatible with the EU Services Directive.

The answer is yes, under specific conditions. An authorisation scheme is allowed if it does not discriminate, is justified by an overriding reason of public interest and is proportionate. Among the reasons that can justify it, the Court cites a structural housing shortage and a particularly high population density.

The criteria must be clear, objective, published in advance and accessible, and the authority must assess the area concerned and the effect of short-term lets on the homes available to residents. It is for the national court to check, case by case, that these conditions are met.

What changes in Italy

For now, nothing: the judgment interprets EU law and gives no new powers to municipalities. It does show how far a national or local rule may go. Anyone buying a home with short-term lets in mind would do well to follow developments.