A new draft law by the Ministry of Social Cohesion and Family—currently open for public consultation—opens a window for inactive or underutilized properties to enter the residential market through permitted changes of use. The bill aims to address one of the housing market’s core challenges: low supply of available dwellings. It allows, under strict conditions, the conversion of existing buildings into residences—both within approved urban plans and outside them—without increasing building volume, floor area, or coverage.
Use Change Within and Beyond Urban Plans
For buildings located within an approved urban plan or settlement, the draft law permits exceptional changes of use to residential—even if current land-use zoning does not allow it. This provision is especially significant for legally standing structures that cannot currently be used as homes due to local zoning restrictions. Under the new framework, the focus shifts from what the land-use designation permits today to whether the building itself is lawful and can be converted into housing within its existing footprint.
The same principle applies to legally existing buildings located outside urban plans and beyond settlement boundaries. In these cases too, a change of use to residential is allowed on an exceptional basis—regardless of prevailing land-use designations, general or special building regulations, or specific spatial, urban planning, or development frameworks governing the property.
Safeguards and Conditions
The draft law includes several safeguards. A change of use to residential is permitted only once—and applies exclusively to the entire existing building shell or part of it. It cannot be used to add new square meters or increase the building’s volume.
For buildings that received construction exemptions exceeding current building rules, the option to change use remains valid—provided those exemptions were granted by 31 December 2025.
Before issuing a building permit for the new residential use, a positive opinion from the Central Architectural Council is required.
Financial Cost for Owners
Owners must pay a one-time, special compensatory fee equal to 5% of the objective value of the land associated with the property. Payment is mandatory before the building permit—or official use-change approval—is issued.
Revenue from this fee will go to the Green Fund, supporting climate neutrality initiatives and environmental upgrading projects in the respective municipalities. Importantly, this fee is standalone—it cannot be offset against other taxes or contributions, making it a distinct financial obligation tied solely to the use change.
Five-Year Ban on Short-Term Rentals
The draft law also introduces a five-year prohibition on short-term rentals—including platforms like Airbnb—for any property newly converted to residential use under this scheme. This measure aims to ensure that newly created housing units serve long-term residential needs rather than transient tourism demand.