Tyrol approves disputed levy on undeveloped building land

Tyrol’s state government approved a disputed bill for a building-land mobilisation levy on Tuesday, ORF reported. Municipalities will be able to impose the levy on undeveloped building land if they consider it necessary. The law is scheduled to enter into force in 2027 but will not take effect until 2032.

The levy targets building plots that have remained unused for a long period. Municipalities will decide individually whether to introduce it, with each decision requiring approval by the local council.

Municipalities will also set the annual amount. The law will establish minimum and maximum rates based on the average level of land prices in each municipality. All revenue will remain with the municipalities.

Tyrol Governor Anton Mattle of the Austrian People’s Party described the bill as an additional tool for housing and spatial planning policy. Deputy Governor Philip Wohlgemuth of the Social Democratic Party pointed to existing housing subsidies, saying that €434 million had been invested in 2025, more than ever before.

Wohlgemuth said too much land designated for construction had still remained unused for years and that the new law would help municipalities mobilise those reserves.

The bill includes exemptions for agricultural operating areas, plots intended for the owner’s own needs, and land belonging to municipalities or non-profit housing associations. Exemptions will also apply where legal obstacles exist, such as land readjustment proceedings.

The proposed law has prompted debate among municipalities and within the state government, including criticism of the numerous exemptions and the administrative burden for municipalities. The Tyrol state parliament is expected to approve the bill in October. The vote is considered practically certain because of the governing parties’ majority.