The EU May Restrict the Purchase of Second Homes: What Will Change

The EU is developing a new framework for cities facing a shortage of affordable housing. Local authorities will be able to impose stricter regulations on short-term rentals, vacation rentals, and, in some cases, second homes. Learn more about where such restrictions might be implemented, the criteria for their introduction, and what this means for property owners and buyers

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The European Commission is proposing to give cities and regions more authority to address the shortage of affordable housing. In areas facing severe housing shortages, local authorities will be able to restrict short-term rentals, vacation rentals, and—under certain conditions—the purchase of second homes. At the same time, there are no plans for a blanket ban on second homes across the EU.

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What exactly is the European Commission proposing?

On September 9, 2026, the European Commission presented the Affordable Housing Act—a draft regulation intended to provide national, regional, and local authorities with clearer rules for addressing the shortage of affordable housing. The document does not impose uniform restrictions across the entire EU, but rather establishes a common framework under which individual cities and regions can demonstrate the existence of a housing crisis and implement local measures.

This primarily concerns cities, islands, and tourist regions where demand for housing significantly exceeds supply. The European Commission explicitly notes that the problem may be exacerbated by various forms of housing use that do not serve as a primary residence, including short-term rentals, second homes, and vacant properties. Local authorities are already attempting to regulate these segments, but have so far done so without a unified European assessment system.

The new rules are intended to provide cities with greater legal certainty, but not unlimited authority. Any measures must be justified, necessary, proportionate, and targeted only at areas where the problem is substantiated by data. In other words, the mere existence of a large number of second homes or vacation rentals will not automatically trigger a ban.

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Where and under what conditions might restrictions be imposed?

The new measures will not apply nationwide, but only in areas where authorities can demonstrate significant pressure on the housing market. To this end, the European Commission proposes using a set of affordability indicators rather than a single universal criterion for the entire EU.

Factors that may be taken into account include:

- The ratio of housing costs to household income

- The share of income that households spend on rent

- Real estate price trends over recent years

- A shortage of affordable housing and limited supply

- The proportion of apartments used as second homes or for short-term rentals

- Demographic changes and tourist pressure on a specific area

That is why the aforementioned benchmark of eight years’ income for housing should not be viewed as an automatic threshold beyond which a city immediately gains the right to impose bans. It is merely one of several possible indicators, and decisions must be based on a comprehensive assessment of the situation.

Most likely, the new mechanisms will be relevant primarily for popular tourist cities, islands, and historic centers, where housing is actively being purchased as second homes or converted into tourist rentals. It is in these areas that the conflict between the interests of investors, the tourism industry, and local residents is currently most acute.

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What restrictions might cities impose?

The European Commission is not proposing a single set of restrictions for all countries. Instead, cities and regions will be able to adapt measures to their local circumstances, provided they can demonstrate that such measures are truly necessary to improve housing affordability.

Possible tools include:

- Restrictions or quotas on short-term rentals through Airbnb and similar platforms

- Limits on the number of vacation rentals in specific areas

- Additional requirements for registering and using housing that is not a primary residence

- Restrictions on the purchase of second homes in areas with the most severe shortages

- Specific rules for vacant apartments that have not been used as permanent residences for an extended period

The key principle is proportionality. A city cannot simply ban second homes or tourist rentals without sufficient justification. Restrictions must be tied to a specific problem, a specific area, and supported by data on the state of the local market.

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What does this mean for property owners and buyers?

For owners of second homes and investors, the main change is that regulations may vary significantly from city to city. Purchasing an apartment for seasonal use, subletting, or investment will no longer offer the same opportunities, even within a single country. Before closing a deal, buyers will need to check local restrictions, the neighborhood’s status, and the rules governing the property’s use.

The greatest risk will arise in tourist destinations with a housing shortage, where local authorities are already actively restricting short-term rentals. If the new powers are finalized, such cities will gain more legal tools to regulate second homes. This could affect both the investment appeal of certain areas and potential rental income.

The initiative is already sparking controversy. Some property owners believe that stricter rules could unduly restrict their right to dispose of their own property. At the same time, representatives of the hotel industry and advocates for stricter regulation of short-term rentals support measures designed to return more apartments to the long-term rental market. The ultimate impact will depend on the specific rules that individual cities adopt following the approval of the European framework.

Buying a home in another country is not only an investment but also a serious legal procedure. Mistakes in documents, unaccounted taxes or restrictions for foreigners can lead to financial losses. Consultation with a real estate lawyer from Visit World will help you to safely complete the transaction, check the seller and avoid hidden risks. Contact the experts to make your real estate purchase abroad as transparent and secure as possible.

We remind you! The Cypriot parliament is considering draft laws that could significantly change the conditions for buying real estate for citizens of countries outside the European Union. The initiatives include quantitative limits on properties, geographical bans and transparency requirements for transactions. Read more about the proposed restrictions, foreign purchases statistics and how to prepare for possible changes in the Cyprus real estate market.

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