Short-term rental can be defined as a residential dwelling unit (either secondary or primary residence) that is rented to the same tenant for a period of 90 days. It is also referred to as "Airbnb," “Tourist accommodation’’ and “Furnished rental” in France. It is usually rented to tourists since France is a top destination country.
The type of residence utilized for the rental determines the maximum length of stay in France. A secondary residence has no maximum stay restrictions, however, a principal residence has a yearly limit of 120 days. However, in order to use their second house for short-term rentals, owners must file a declaration with their town hall and obtain permission. In cities like Paris, the host may also demand that the home's usage be changed from one of a business lease to one of a secondary short-term rental home.
The measure taken by the French government to regulate short-term rental nationally allows municipalities with more than 200,000 inhabitants to compel renters on digital platforms to declare themselves in town halls which helps the country face the housing crisis. As various municipalities now enact various rules to address the housing crisis. The rules are stricter from municipality to municipality.
If your secondary residential property is located in Paris, you are obligated to respect compensation rules; that is, for every 1 square meter of housing transformed into a short-term rental, you must acquire another 1 square meter of a commercial estate which must be transformed into habitation. This means that an investor that intends to carry out a short-term rental in Paris must buy two properties instead of one, while one is used for short-term rental, the other will be a commercial building that will be transformed for habitation to compensate for the housing shortage. Some boroughs are subject to strict compensation which requires compensation of 2 square meters of a commercial estate for 1 square meter of housing transformed into a short-term rental.
Non-compliance with this rule in Paris exposes the owner of the property to a fine of up to 50,000 euros per dwelling and a penalty payment of up to 1,000 euros per day per square meter until regularization.
Short-term rental owners in France are obligated to pay VAT, income tax, and social charges. There are different income tax regimes that you can fall under, depending on the classification of your furnished apartment by your local department of Tourism or the French national tourism development agency, the registration of short-term rental as a business, and other factors.
You’ll also need to pay either residential tax or property tax, depending on whether you are a tenant or owner. However, short-term rental carried out in primary residence is exempt from tax. You are also exempted from VAT if you don’t include additional services to your short-term rental.
The three different income tax regimes for furnished accommodation and small landlords are the micro-entreprise /BIC, micro fiscal, and regime réel but micro-entreprise and regime réel are the major tax regime.
There is no national permit, license, or registration for short-term rental owners in France instead, you may be required to apply for permission with your landlord or at your municipality to rent out your accommodation for short-term leases.
Check your sub-national jurisdiction page on this website to access the latest information on the laws and regulations that applies to your short-term rental properties in France.
For further information, please contact;
Ministère de l'Économie, des Finances et de la Souveraineté industrielle et numérique
139, rue de Bercy
75572 Paris Cedex 12
Téléphone: 01 40 04 04 04
Department of Tourism
Ministry of Europe and Foreign Affairs
Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.