Filenews 10 November 2025 - by Theano Thiopoulou
How long does it take for a permit for the construction sector, what score each country has, how many days are required to complete the construction process, is one of the many questions answered by the European Commission's report "Housing in the European Union: Market Developments, Underlying Drivers, and Policies".
Analysts say it is difficult to summarize and compare spatial planning and building regulations between countries using uniform measures. One reason for this is that in many countries policies are set at a subnational level, which makes it difficult to produce a national assessment. The World Bank cites indicators for construction regulations that could be used as a substitute, despite the fact that they focus on businesses rather than households. This data – as of 2020 – consists of a score for processing construction permits, a measure of the average number of days required to complete the construction process, the cost of transferring a property, and a measure of the quality of land management.
The worst scores concerning construction permits were achieved by the Czech Republic, Croatia, Romania and Slovakia. The longest time to complete all construction processes of a project (507 days) was reported in Cyprus, followed by Romania (260 days), Slovakia (300 days), Slovenia (247.5 days) and Czechia (246 days). Let's see what is happening in other countries according to the data in the report. In Denmark (64 days) and Finland (65 days) the time required to complete all construction processes is the shortest, followed by Lithuania 74 days, Bulgaria 97 days. In Germany it is 126 days, in Estonia 103 days, Ireland 164 days, Greece 180 days, Spain 147 days, France 213, Croatia 146 days, Latvia 192 days, Luxembourg 155 days, Netherlands 161 days, Austria 222 days, Poland 137, Portugal 160, Sweden 117 days.
The most costly transfer of property costs % of property value was recorded in Malta (13.5%), followed by Belgium (12.7%) and Luxembourg (10.1%). In Cyprus it is 7.7%, in Greece 4.8%, Bulgaria 2.8%, Denmark and Germany 0.6%, Spain 6.1%, Italy 4.4%, Netherlands 6.1%, Austria 4.6%, Portugal 7.3%, Romania 1.3%, Slovenia 2%, Finland 4%, Sweden 4.3%. The lowest values for the quality of land management (index 0-30) were recorded by Greece (4.5), followed by Malta (12.5) and Romania (17). In Cyprus the index is at 23, in Italy 26.5, Lithuania 28.5, Austria 23, Portugal 20.
Issuance of licenses
The report notes that the process of issuing building permits consists of multiple steps with significant differences between EU countries. The process of issuing building permits is crucial for ensuring regulatory compliance in the construction industry. Usually, it is an integral part of building legislation and includes enforcement rules. "It involves central, regional and local public authorities and numerous private bodies. These include the applicant, the constructor and the building project supervisor. The process of issuing building permits involves several steps, starting with the application and approval of the plan and continuing with site inspections and supervision," the report states. In all EU countries, the report says, the applicant must pay a fee to obtain a building permit. However, there is a lot of variation in how the value of the fee is determined, which can be based on the cost of construction, the area, the intended use of the building, or it can be a fixed fee.
According to the report, in most EU countries there are set process times during which the permit must be issued, ranging from 3 weeks in Lithuania to 31 weeks in Portugal. In some countries (such as Cyprus, Denmark, Latvia, Luxembourg, Slovakia and Sweden) there is no fixed time. "In addition to long processing times, the permitting process in some countries is burdened by complex documentation requirements, which can create unnecessary delays and administrative burdens. Revising these requirements, with a view to simplification, could contribute to greater efficiency," the report's analysts say.
How is property taxation done?
Recurring taxes on housing can be an effective source of taxation and reduce speculative demand, the report says. Recurring property taxes can capture the financial rents accrued to landlords by rising house prices, which results from a lack of land. While periodic property taxation applies in most EU countries, it does not apply in six Member States (Cyprus, Estonia, Croatia, Hungary, Italy, Malta).
Different rates, it is noted, may apply to the primary residence and other types of real estate, such as secondary residences or residences owned as investment assets. Periodic property taxes typically account for a large share of property taxes and a significant source of revenue for local governments. The reluctance of governments to increase revenues from such taxes is due to several factors: housing taxes are highly visible, the assessment and updating of the relevant tax base is often controversial, and, since housing taxes are often paid to local authorities, an increase may require balancing revenues at different levels of government. Additionally, property taxes can be considered unfair, as they are not related to the taxpayer's current ability to pay, making them unpopular.
Tax on vacant properties, a challenge for Europe
The tax is also used to settle vacant properties, the proliferation of which is a major issue in some countries and cities. The report indicates that the issue of vacant properties is a major challenge across the EU, with an estimated estimated that around one in six properties remain vacant across Europe. "This issue is particularly acute in some EU countries, such as Bulgaria, Romania, Portugal, Malta, Cyprus and Hungary. However, a high percentage of vacant properties can also be found in some large cities with significant housing shortages," it said.
However, statistics are not harmonised across the EU, with some states considering second homes as vacant while others are not. Identifying vacant properties, according to the report, is not an easy task, but there are several methods that can be used. These include monitoring the use of utilities (significant and long-term reduction in water, electricity or gas consumption), real estate databases (properties available for sale for a long time), postal service data (undelivered mail). While the monitoring of vacant dwellings remains the task of local authorities, there have been cases where such monitoring is carried out at regional level, as in the case of Wallonia in Belgium. The report notes that effective taxation of vacant homes requires strict enforcement of homeowners' declarations, with fines for false declarations, as demonstrated by international experiences such as those of Vancouver and Melbourne.
