The European Commission is investigating whether certain planning restrictions imposed by some Irish local authorities are discriminatory.
The Commission today formally confirmed it is investigating whether certain planning conditions, including some local authorities' insistence that those applying to build a house must have local connections, might be contrary to EU law.
In a statement, the European Commission said it had decided to send to Ireland an official "request for information" on certain county development plans that require specific criteria to be fulfilled before planning permission will be granted for a house.
"The Commission wishes to verify whether the measures in question are compatible with Article 43 and 56 of the EC Treaty which guarantee respectively the freedom of establishment and the free movement of capital. This official request takes the form of a 'letter of formal notice', the first step in the infringement procedure under Article 226 of the EC Treaty.
"Ireland has two months in which to respond."
The Commission said it would inquire into whether certain conditions imposed by local authorities are compatible with EU law.
They include the requirement by most counties that the person applying for permission have residency in the area or family members in the area.
It would also investigate the situation where many counties require local employment in specific activities linked to the land.
"In some cases this can even be limited to agricultural activities," the statement said.
The Commission noted that citizens from other member states would "very rarely" be able to claim former residency, or the presence of family members.
"Moreover, they may wish to pursue activities which do not fall within the limited list of activities allowing access to the dwelling authorisation.
"Therefore, the Commission request[s] observations from Ireland on the discriminatory aspects of the restrictions, their objectives, and the proportionality of the measures with the objectives pursued," the statement added.
Some local authorities in Ireland have also imposed restrictions which limit planning permission for houses to those who speak Irish.