Esch-sur-Alzette has approved a tax on vacant properties: what we know so far

On Friday 23 October, the Esch-sur-Alzette Municipal Council approved a tax on vacant properties and unused building plots. All parties on the council, except the ADR, voted in favour of the regulations. The tax is not yet in force: the regulations must first be approved by the Ministry of the Interior.

According to Mayor Christian Weis, the tax is intended to apply to properties where no one has been registered for more than 18 months and which are not used as a second home. The conditions for undeveloped plots have not yet been clarified. According to the mayor’s estimates, there are around 1,500 vacant residential properties in the town; according to L’essentiel, approximately 70 per cent of these have been vacant for over a year.

This is the second attempt for Esch: the town adopted a similar tax back in 2012, but never actually implemented it. A law introduced in 2008 allows local authorities to levy a tax on properties that have stood empty for 18 months; however, according to L’essentiel, only 8 out of 100 local authorities have made use of this provision. The town hopes this will help tackle the housing shortage.

Much remains unclear at this stage. The text of the regulations has not been published, and the rates quoted in articles by RTL and L’essentiel differ; consequently, it is not yet possible to determine how much will have to be paid or how the amount will be calculated. It is also unclear when the Ministry will approve the regulations and from when the tax will be levied.