Tyrol approves levy on unused building land

Tyrol’s state parliament has approved a levy on long-term unused building land, with governing parties ÖVP and SPÖ voting in favour and all opposition parties voting against. The law takes effect in 2027, ORF reported.

From 2032, municipalities will be able to choose whether to charge the levy on undeveloped plots zoned for residential or mixed use. The measure is intended to discourage land hoarding and make housing more affordable.

The levy will go entirely to the municipality. It will consist of annual flat-rate charges in three categories, set by each municipality through an ordinance. Rates will take local land prices into account and fall within minimum and maximum limits.

Exemptions include plots intended for the owner’s own needs, agricultural business land, plots for five years after purchase and land involved in inheritance proceedings. Plots owned by municipalities, non-profit housing associations, the Tyrol Bodenfonds and the Landeskulturfonds are also exempt. Other exemptions cover certain planning and legal restrictions. No levy will apply if an owner asks for, or agrees to, a change in zoning from building land to open land.

The proposal drew criticism from ÖVP representatives of farmers as well as opposition parties. The Tyrol Chamber of Agriculture said the levy could infringe property rights and increase pressure on farming families to sell land. The FPÖ also objected to what it called an excessive interference with private property. The Greens and Liste Fritz criticised the number of exemptions, while NEOS argued the levy would not solve Tyrol’s housing problem.