ECJ Opinion on Cali Apartments and HX cases: Municipal Authorisation for STR is permitted by the EU Services Directive

On Friday 3, April European Court of Justice Advocate General Michal Bobek delivered an Opinion regarding joint cases C-724/18 and C-727/18 (so-called Cali Apartments and HX cases). In both cases, the European Court of Justice is asked to give clarification as to whether national legislation that makes the letting of furnished accommodation for short stays subject to an administrative authorisation falls within the scope of the Services Directive. Advocate General Bobek concluded that:

• the Services Directive is applicable to national and municipal provisions governing access to the service consisting in the repeated letting for short periods, for consideration, including on a non-professional basis, of accommodation for residential use to a transient clientele, which does not take up residence there.
• The objective of tackling a shortage of long-term housing can, however, constitute an overriding reason relating to the public interest capable of justifying a national measure which requires authorisation to be obtained. Such national and municipal provisions are allowed by the Services Directive provided that they comply with the conditions of proportionality and non-discrimination, which is for the referring court to verify.
• If it is accepted that the local level is allowed to adopt rules and flesh out the conditions for authorisation schemes, the proportionality of such rules is likely to depend on the taking into account of the local circumstances and specificities.

The full text of the Opinion is available here. A more detailed memo is available here below.