Airbnb Rentals: The State Prepares to Do a Big Clean-Up

© Unsplash/Andreas Davis/Presse-citron

Is Airbnb going to disappear ? While the service is not threatened as such, it is its development that worries MPs and French senators. After an initial adoption of the text of the law in January 2024 in the Assembly, and in May in the Senate, it was presented before the joint committee.

The latter, which met on Monday October 28, was to rule on several points, particularly taxation, around the question of “furnished tourist accommodation”. After four hours of intense discussions, the deputies and senators found common ground.

The new version of the bill, supported by deputies Annaïg Le MEUR (Renaissance, Finistère 1st constituency) and Iñaki Echaniz (PS, Pyrénées-Atlantiques 4th constituency), should therefore arrive at the Senate on November 5 for a final vote, before going before the Assembly, on November 7. Promulgation should take place afterwards.

What does the law say ?

Concretely, the law fights against the development and short-term rentals (LCD), in particular ” furnished tourist accommodation “, more commonly known as ” Airbnb accommodation “. These accommodations, located in tourist areas, are rented to vacationers and remain vacant for a large period of the year.

The law will limit the growth of these LCDs by implementing stricter taxation. In concrete terms, owners now benefit from a tax reduction of 50% up to a limit of 77,700 euros. If the tax loophole still exists, it has been seriously challenged and the reduction will now only be 30% up to a limit of 15,000 euros.

200% Deposit Bonus up to €3,000 180% First Deposit Bonus up to $20,000

Giving power to town halls

The law also plans to give much more power to municipalities to combat the development of “furnished tourist accommodation” locally. Thus mayors will be able to limit tourist rentals to 90 days, to avoid abuse. Senator Sylviane Noël, rapporteur of the text, hopes that the latter will be applicable very quickly, because it will provide strong tools to allow “regulating these furnished tourist accommodations”.

According to her, the main thing is to make owners want to do long-term rentals again, particularly with tax benefits, or at least by placing them on the same scale. The joint committee also ruled on the issue of mandatory renovations for these short-term rentals.

All “furnished tourist apartments” will have to present a DPE ” E ” when the law is promulgated, and a DPE ” D ” before January 1, 2034. The two deputies at the origin of the text welcomed in a joint press release “a great victory for the territories and a fight that continues on taxation.”

For the lessors of ” furnished tourist accommodation ” the nightmare could only just begin, because Annaïg Le Meur, already at the origin of this first text, has just written a new report on the taxation of these lessors, and in particular the difference between the ” micro-BIC ” regimes and the ” real ” regime. which would be even more advantageous in certain cases.

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