At the beginning of 2025, European authorities began seriously considering how to make housing more affordable for citizens. On the agenda are radical changes in tax policy that could affect millions of property owners. The Advisory Council at the European Commission (Junta Asesora de Vivienda) has presented a comprehensive package of 75 proposals aimed at tackling the housing shortage and market speculation.
Financial tools to address the housing crisis
One of the key ideas is to reallocate funds from European sources: it is proposed to direct at least 3% of the Social Development Fund (FSE+) budget to housing-related programs. This amounts to more than 4 billion euros annually until 2027. Experts are convinced that without substantial investments, meaningful change is impossible.
There is also discussion about creating a special fund to support low-income households and combat homelessness. Experts believe that this step would not only increase the number of affordable homes but also help reduce social tensions in major cities.
New taxes and a review of existing rules
Particular attention is being paid to tax reform. The council suggests a complete overhaul of the property and land taxation system. Among the initiatives are the introduction of additional levies on vacant apartments, as well as on plots of land designated for construction but not being used as intended.
Owners of large apartments that are not being used to their full capacity may be offered financial incentives to move into smaller homes. At the same time, there are discussions about subsidizing the conversion of empty buildings into residential spaces.
Tourist rentals under scrutiny
Another hot topic is short-term rentals for tourists. Authorities believe these properties distort the market and drive up prices for local residents. To address this, there is a proposal to introduce mandatory fees for owners of tourist apartments if their activity affects housing prices in the region.
The collected funds are expected to be directed toward infrastructure development and support for people who have lost their homes. Additionally, the European Union insists that all member states adopt unified regulations for this market segment.
Protecting the vulnerable and new opportunities for youth
Among the proposals is a ban on the eviction of tenants from apartments built or renovated with European funds. Additional benefits and support programs may become available for young people buying a home for the first time.
The council also recommends speeding up land allocation for construction and simplifying bureaucratic procedures for developers. Another key priority is modernizing the aging housing stock: grants are proposed for the renovation of dilapidated buildings to make them suitable for living.
Market outlook and challenges
If these initiatives are implemented, the European real estate market will undergo a major transformation. Owners of vacant properties and investors focused on short-term rentals will face new costs. At the same time, new opportunities to purchase homes will open up for young families and vulnerable social groups.
However, experts warn that any changes must be carefully considered to avoid driving away investment and worsening the housing shortage. Authorities promise to take all sides into account and hold broad public consultations before making any final decisions.
As RUSSPAIN reported earlier
The European Commission (Comisión Europea) is the main executive body of the European Union, responsible for developing and implementing EU-wide policies. In recent years, the agency has been actively addressing issues of social justice and sustainable development. Special attention is being given to housing accessibility, as property prices have multiplied in several EU countries over the past decade. The Commission regularly launches reforms aimed at protecting tenants’ rights and combating market speculation. In 2024, the Commission already launched pilot projects to support young families and modernize the housing stock. Additionally, the agency closely cooperates with national governments to establish uniform standards for real estate market regulation. In the coming years, further tightening of controls over investors and property owners—especially in tourist regions—can be expected. Experts note that such measures could serve as an example for other countries facing similar challenges.
