Cjeu Opinion draws Red Line: Urban Planning Authorisations for Short Term Rentals must respect the Services Directive
The European Holiday Home Association (EHHA) welcomes the Opinion of Advocate General of the Court of Justice of the European Union in Case C-813/24 (Smartflats v Région de Bruxelles-Capitale), which delivers a strong and timely clarification that urban planning authorisation regimes for short-term rentals (STRs) fall within the scope of the EU Services Directive and must therefore comply with EU principles of proportionality, justification, transparency, legal certainty, and procedural fairness. The Opinion makes clear that Member States and cities can regulate STR activity, but when they do so through authorisation (urban planning) schemes that condition STR access to the market, those restrictions must be proven necessary by the local authorities and proportionate.
The Opinion casts serious doubt on the legality of the Brussels STR regime. On tourist and consumer protection, it questions whether such a heavy prior authorisation structure is necessary – basic health and safety obligations already apply under general housing legislation. Consumer protection is also supported by platform-based reputation and review systems, which provide effective transparency and accountability with far less restriction. The Opinion also notes that other Belgian regions, including Flanders and Wallonia, rely on lighter STR registration schemes and ex-post controls rather than complex prior authorisation approvals, suggesting that less restrictive models exist.
On urban environment and housing protection, the Opinion indicates that Brussels’ STR regime lacks all three of the limiting features identified in the CJEU Cali Apartments judgment (C‑724/18 and C‑727/18, EU:C:2020:743): the French regime was supported by detailed evidence showing a causal link between the rise of STRs and housing pressure, excluded primary (main) residences on the basis that their short-term renting does not remove housing from long-term rental supply, and the scheme was not of general application, but was geographically targeted to a limited number of densely populated municipalities experiencing proven rental market tensions. By contrast, the Brussels STR regime applies uniformly across the entire Brussels-Capital Region, covering all 19 municipalities, without distinguishing between areas based on the actual impact or concentration of STR activity.
The Advocate General also flags major procedural flaws. Planning authorisations based on broad municipal discretion and unclear criteria undermine legal certainty, while systems with no binding deadlines, no duty to give reasons, and no effective remedies fail the Services Directive safeguards. He further warns that treating administrative silence as automatic, implicit refusal may breach EU rules, which generally require authorisation to be deemed granted if authorities do not respond in time.
EHHA considers this Opinion as a key milestone toward better, legally robust and effective STR regulation across Europe, confirming that clear, proportionate, and necessary rules — targeted and geographically limited — drive compliance and public policy goals far better than opaque and overly burdensome blanket STR restrictions. EHHA will continue to follow the case closely as the Court of Justice of the European Union prepares its final judgment and will continue working with authorities across Europe to support balanced, evidence-based regulatory frameworks for the STRs.
About EHHA: The European Holiday Home Association (EHHA) is a voice of short-term rental accommodation players in Europe. It represents national (regional) STR associations, companies, online platforms, working together to shape a fair, evidence-based and balanced regulatory landscape across the EU which allows for a vibrant, prosperous, resilient, responsible, and sustainable short-term rental industry.