The European Commission presented on 16 December 2025 its first Affordable Housing Plan, which will mobilize €375 billion through a Pan-European Investment Platform. Various analyses indicate that this public funding could facilitate tax evasion and money laundering by large investment funds.

The described mechanism indicates that “private equity” firms register in tax havens such as Luxembourg or the island of Jersey and create networks of subsidiary companies that hinder money tracing. Between a tenant’s home and the main fund, several intermediary companies may exist, generating financial opacity. This would allow illicit capital (from drug trafficking or corruption) to enter the real estate sector and be legalized through purchase and rental.

The Commission acknowledges that housing prices have increased by 55% in sales and 26% in rentals since 2010 (Eurostat). However, the plan focuses on building more private housing. Various analyses warn that there is no evidence that this measure reduces prices in a sustained way. As an alternative, it is proposed to promote public and cooperative housing with capped prices and to create a property registry to track financial flows.

Among the plan’s shortcomings, it is noted that the conditions for the use of funds are not very strict, which could favor opaque practices. Furthermore, by not excluding companies with complex structures, European taxpayers could indirectly finance money laundering activities. Meanwhile, the European Federation of National Organisations Working with the Homeless (FEANTSA) estimates that 400,000 minors live on the streets in the European Union.