(ADW) Despite a lack of housing space in Luxembourg City there are countless empty homes dotted around the commune. The City now plans to take action using a similar model as Esch-sur-Alzette, by introducing extra taxes for unused housing.

Owners of vacant buildings and derelict plots of land in Luxembourg City will soon incur additional costs. Just how high these taxes will be has not yet been clarified, Mayor Xavier Bettel explained on Wednesday. "It is clear, however, that the tax will be applicable for all cases," he concluded.

From September, the commune's finance committee will be presented with a draft for the project.

Last week, the city of Esch-sur-Alzette announced the introduction of the new tax. For empty houses the tax will be 150 euros per metre of facade for the first year, rising to 200 euros for the second year and 300 for the third.

As for building plots, taxes will be 15 euros per square metre for the first year, doubling to 30 euros in the second and 50 euros in the third year.

Photo: Reuters