‘Non-discriminatory, necessary, and proportionate’ – Brussels court ruling impacts Irish short-term rentals

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  • The Irish Self Catering Federation noted the ECJ SmartFlats decision.
  • Legislation requiring a register for short-term rental operators is only valid if it is non-discriminator
  • The federation called for a Register for short-term rentals.
  • The previous register managed by Fáilte Ireland was cancelled in 2008.
  • The Register for STR Bill is due before the Dáil in the coming weeks.
  • The federation noted the register is needed for clear data.

A Brussels court ruling has decreed that legislation requiring a register for short-term rental operators is only valid if it is non-discriminatory, necessary, and strictly proportionate.

The landmark ruling clarifies how far local governments can go when restricting short-term holiday rentals (STRs) under the EU Services Directive. The Court confirmed that spatial planning and municipal urban planning regulations fall squarely under the EU Services Directive (2006/123/EC) if they are integrated into a mandatory registration or authorisation regime for tourist accommodation.

The judgment notes that broad indicators—such as general population thresholds—do not automatically serve as definitive proof that short-term lets are causing local housing shortages. National courts must actively test whether a restriction is genuinely needed to protect the housing market or tourists. 

The CJEU ruled that municipal planning certificate procedures must feature reasonable, clearly published decision deadlines rather than leaving businesses stuck in indefinite administrative loops. 

The Irish Self Catering Federation has noted a European Court of Justice decision on SmartFlats in Brussels. The federation has been calleing for a Register for short-term rentals. It noted the register is needed for clear data and has sought reinstatement since 2017.

The previous register managed by Fáilte Ireland was cancelled in 2008. The Register for STR Bill is due before the Dáil in the coming weeks. The federation has linked the register to data clarity for the sector.

The European Court of Justice decision concerns SmartFlats in Brussels. The federation noted the register would support clear data for short-term rental oversight. The Bill is expected before the Dáil in the coming weeks.

Máire Ní Mhurchú shared “The Register for STR is needed for clear data and the ISCF has been calling for a Register to be re-introduced since 2017. The previous register managed by Failte Ireland was cancelled in 2008.”

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