New legislation in France regulates the tourist rental market, including platforms like Airbnb, addressing housing concerns and enhancing local control. Tax deductions for unclassified rentals will decrease significantly, and mayors gain tools to limit rental days and establish quotas. The law aims to restore housing’s primary function while standardizing energy performance regulations. While hotel representatives support the changes, Airbnb has raised concerns about new requirements but is open to collaboration with local authorities.
New Regulations for Tourist Rentals: A Shift in the Market
The French Parliament has officially approved a new law designed to regulate the tourist rental market, including platforms like Airbnb. This legislation, finalized on Thursday, aims to address the growing concerns around the housing crisis while providing municipalities with greater authority to manage rental supply.
Tax Changes and Local Control
This legislative effort, which has been in the pipeline since April 2023, resulted from a compromise between the National Assembly and the Senate, culminating in a widespread approval from deputies. The only dissent came from far-right members, while senators had previously endorsed the bill unanimously.
As the number of tourist rentals surged from 300,000 to 1.2 million over the past eight years, the law’s co-authors emphasized the need for regulation to restore housing’s primary function rather than outright prohibition. Changes to the tax regime for tourist rentals are a key aspect of this law, shifting the focus from favorable tax benefits previously enjoyed by these rentals.
Unclassified tourist rentals will now see their tax deduction reduced from 50% to 30%, aligning it with unfurnished rental properties, capped at 15,000 euros. Meanwhile, classified rentals and guest rooms will experience a reduction in their deduction from 71% to 50%, with a cap lowered to 77,700 euros.
Additionally, the legislation standardizes energy performance regulations to prevent poorly insulated homes from being rented out short-term.
Mayors now have a “toolbox” at their disposal to impose regulations, previously limited to municipalities with populations over 200,000 in “tense zones.” Mayors can now restrict rentals of primary residences to 90 days a year, down from the current 120 days, and establish quotas for tourist rentals. Cities with more than 20% second homes can also earmark areas for primary residence construction in their urban planning documents.
In Paris, the upcoming urban planning plan is set to prohibit new tourist rentals in key areas, reflecting a proactive approach to managing the impacts of tourism on local housing.
While many mayors across France are eager to implement these new regulations, only a fraction of municipalities have previously enacted restrictions. The law also mandates that all furnished rentals must have a registration number, and property management associations can decide their stance on tourist rentals.
Overall, the new law has received a positive response from hotel representatives and tourism federations, who consider it balanced. In contrast, Airbnb has expressed concerns over the new fiscal and administrative requirements but remains open to collaborative solutions with municipalities to address specific local issues.