EU Top Court Says Brussels Can Require Short-Term Rental Authorisation

The Court of Justice of the European Union ruled on 22 October 2026 that the Brussels-Capital Region can require short-term rental operators to obtain prior authorisation, provided the regime is necessary and proportionate to protect tourists and the urban environment, including housing.

The case, Smartflats v Brussels-Capital Region (C-813/24), was referred by the Brussels Court of Appeal. Smartflats, an apartment rental operator, challenged the regional tourist accommodation rules, under which a property needs an urban planning conformity certificate before it can be registered and let to tourists. The company filed its declaration in September 2020. It was declared inadmissible in November 2021, and the authorities ordered the business to stop operating in November 2022.

What the court decided

Issue	Ruling
Scope	The EU Services Directive applies to urban planning rules when they form part of a prior authorisation regime for tourist accommodation
Justification	Protecting tourists and housing can justify prior authorisation, but only if it is necessary and proportionate, and less restrictive options such as a declaration with later checks have been considered
Planning certificate	Compatible with EU law only if its criteria are clear, objective and transparent, and local discretion is limited and protected against arbitrary use
Procedure	Reasonable, publicly announced deadlines, reasons for any refusal and a right of appeal
Unlawful conditions	A non-compliant condition must be set aside on its own if it can be separated from the scheme; if it cannot, the whole regime must be disapplied

The case returns to Brussels

The Brussels Court of Appeal must now apply these tests to the facts. It will assess whether the regime is justified given its geographic reach and its effect on housing, whether other rules already guarantee safety and habitability, and whether operators can reasonably predict when a change of use permit is required.

An Advocate General opinion published earlier this year had cast serious doubt on the Brussels regime, pointing to the absence of a demonstrated link to housing pressure, of an exemption for primary residences and of geographic targeting. The Court has given the region more room than that opinion suggested, while setting firm conditions on transparency and procedure. The judgment builds on the 2020 Cali Apartments ruling, which upheld authorisation schemes for short-term lets in France.

A large compliance gap

Brussels already enforces a registration system that requires, among other documents, the urban planning certificate at the centre of the case. Compliance remains low.

Metric	Figure
Entire homes that hosted guests in Brussels (2025)	2,788
Listings estimated to be unregistered	Over 90%
Properties on the official tourist accommodation list	267
Inspections in 2025	213 visits, 149 unregistered units found
Fines for operating without registration	416 to 41,600 euros

What it means for operators

The ruling confirms that EU free movement of services does not automatically block local licensing of short-term rentals. It also sets a clear benchmark that every European city running an authorisation scheme will be measured against: restrictions must rest on evidence, be targeted, and come with clear criteria, deadlines, reasons and appeal rights. For operators in Brussels, the outcome now depends on how the Court of Appeal applies those tests to the regional rules.

Cover image: Gabriel Rambaud / Unsplash