Styria will end vacant-home levy in 2029

Styria will abolish its levy on vacant apartments from the start of 2029 under a proposed deregulation package, ORF reports. The package aims to simplify 113 state laws, and was presented at a summit in Graz on Thursday.

State Governor Mario Kunasek said the levy had failed to achieve its intended effect of creating affordable housing, while adding to administrative costs for both the government and property owners. He said the state would instead make building procedures simpler, including removing permit requirements for some simplified projects.

The first part of the deregulation law took effect in early 2026. More than 50 of the 113 planned measures have already been implemented, according to the state government. The changes presented on Thursday are expected to go before the state parliament in the second quarter of 2027.

The Greens said scrapping the levy would reward owners who leave housing empty while taking an important source of revenue away from municipalities. The KPÖ party also opposed the move, arguing that the government should help municipalities promote affordable housing and make better use of existing apartments.

Styria’s SPÖ leader, Max Lercher, called the decision “incredible” given the financial pressures facing cities and municipalities. He criticised Kunasek for doubling the overnight-stay levy for the state budget while removing the vacant-home levy collected by municipalities.