One week after the judgment of the Court of First Instance concerning the unlawful conduct of the City of Brussels in failing to process fire safety compliance certificates, the Second Chamber of the Brussels Court of Appeal, in a ruling delivered on November 14, referred questions to the Court of Justice of the European Union (CJEU) regarding the compliance with Directive 2006/123 of the European Parliament and of the Council of 12 December 2006 on services in the internal market of the Ordinance of 8 May 2014 relating to tourist accommodation, and more specifically the granting condition requiring a certificate of compliance with urban planning and land-use regulations.
This development constitutes a major step forward in the overall legal pathway, including in particular the action for annulment of the Ordinance of 1 February 2024 filed before the Constitutional Court on August 5, which itself includes the referral of preliminary questions to the Court of Justice of the European Union.
By coincidence of timing, on November 20, the European Holiday Home Association (EHHA) — representing the short-term rental sector in Europe and of which STR-Belgium is the exclusive Belgian member — filed an official complaint with the European Commission regarding unjustified and disproportionate Catalan rules on short-term rentals that are contrary to European Union law.
For reference, Belgium itself is also subject to an infringement procedure concerning the Ordinance of 8 May 2014 on tourist accommodation and its implementing decree. The pre-litigation procedure is currently at the letter of formal notice stage (Article 258 TFEU).
There is now no doubt that the European Union will be the ultimate arbiter of the short-term rental issue — in Brussels, in Catalonia, and across Europe — in order to ensure that local regulations are proportionate to the objectives pursued, justified, and non-discriminatory.
From the effective protection of housing to the disguised protection of the traditional hotel segment, it is the general interest that must ultimately prevail. And while international travellers, tourists, or service recipients are not voters in local elections, they are indeed voters — with one click — when choosing their destination, with all the associated economic impacts for the cities and regions concerned. Eurostat figures clearly demonstrate the popularity of short-term rentals among citizens worldwide. Enough said.
Press coverage of the EHHA press release: Reuters — Euronews — Short Term Rentalz
English translation of the EHHA press release below.
Short-Term Rental Industry Files Formal Complaint with the European Commission Against Unjustified and Disproportionate Catalan Rules on Short-Term Rentals
The European Holiday Home Association (EHHA), representing the short-term rental sector in Europe, has filed a formal complaint with the European Commission regarding unjustified and disproportionate Catalan rules on short-term rentals that are contrary to European Union law.
In the EU, any national, regional, or local rule restricting short-term rental services must comply with EU law, particularly the Services Directive. This directive states that such rules must be justified, non-discriminatory, and proportionate.
EHHA considers that the Catalan Housing Decree (3/2023) violates the EU Services Directive because the restrictions imposed on short-term rental providers are unjustified, disproportionate, and ineffective in addressing overtourism and housing shortages. These restrictions risk causing significant harm to families facing rising living costs, tourism operators of all sizes, and local economies.
EHHA emphasises that often politicised claims suggesting that short-term rentals affect housing availability and affordability or contribute to overtourism are overly simplistic in a complex and multifactorial debate. Issues such as urban population growth and migration, demographic ageing, lack of investment or public spending to build new housing, rigid urban planning rules, vacant housing and empty commercial spaces, and high mortgage rates are at the core of Europe’s current housing challenges. Short-term rentals should not be used as a scapegoat leading to excessively restrictive rules to the detriment of European citizens, small tourism providers, and local communities.
Statement by EHHA Secretary General, Ms Viktorija Molnar
“EHHA members have, over the years, supported data sharing with authorities and welcomed the EU regulation on short-term rental data collection and sharing, which should increase transparency and enable evidence-based decision-making at the local level.
We are, however, very disappointed to learn that the Catalan Housing Decree, adopted urgently and without a public consultation period, is based on unverified assumptions and provides no evidence establishing a causal link between short-term rentals and housing problems. Moreover, it ignores the complexity of housing-related issues.
European Commission services have already expressed concerns to the Spanish authorities, indicating that the restrictions provided for in the Catalan Housing Decree are not suitable for the objective of tackling housing shortages, are disproportionate to that objective, and appear to infringe the EU Services Directive.
We are confident that EU law has not been respected. By filing this complaint, we hope that the European Commission will take a further step by opening a formal infringement procedure against Spain.
Once again, we urge the new Catalan government to examine the concerns raised by the European Commission and to act diligently and urgently to remove the unfair and disproportionate provisions of this law.”
About EHHA (European Holiday Home Association)
Founded in 2013, EHHA (www.ehha.eu) gives a voice to the short-term rental sector. Its members include national associations representing property owners and/or managers, online short-term rental platforms, and companies providing ancillary services to short-term rental providers. Its members operate across European Union countries.
For more information:
Secretary General — Viktorija Molnar — Email: info@ehha.eu
