Holiday rental regulations
Whether you are an owner, a tenant, simply curious or a genuine lover of clear, concise legislation (and who isn't, after all?), this article is for you! Let's set off together on an informative journey, where the words "regulations" and "furnished tourist accommodation" will become your new best friends.
What is furnished tourist accommodation?
Furnished tourist accommodation is a bit like your second home, except that you share it with strangers passing through. More formally, it is a furnished dwelling let to tourists for a short period. This type of accommodation is the perfect alternative for anyone looking for a warmer, more personal experience than a hotel. But be warned, it isn't the Wild West! The law keeps a close eye on things.
Current regulations in high-demand areas
What is a high-demand area?
High-demand areas ("zones tendues") are those places where finding somewhere to live can feel like an obstacle course. They are often cities where housing demand is so high that prices would go through the roof without a degree of regulation.
Registration and authorisation
To let a property as furnished tourist accommodation in these areas, you need to jump through a few administrative hoops. First of all, registering your property with the town hall or the prefecture is compulsory. It's rather like getting a visa for your flat!
The length of the letting
Letting periods are also regulated. As a rule, you cannot let your property for more than 120 days a year, to make sure homes are not used solely for holiday rental at the expense of local people looking for a main residence.
Tax rules for furnished tourist accommodation
Tax on rental income
Income generated by letting furnished tourist accommodation is treated as "Bénéfices Industriels et Commerciaux" (BIC), i.e. industrial and commercial profits.
You therefore have to declare it, but don't worry: simplified schemes such as the micro-BIC do exist.
There have been some changes on this front in 2024.
Under this scheme, the previous threshold was set at 77,700 € for letting furnished tourist accommodation. It is now 15,000 €. The flat-rate allowance has been amended too. It used to be 50% and is now 30%.
The tourist tax
Ah, the famous tourist tax! This small contribution is collected by the local authority and varies according to the location and the type of accommodation.
It is payable by the guests, but as the owner it is up to you to collect it and pass it on. Rather like being the tax collector of your very own miniature tourist kingdom.
VAT and specific rules
In some cases, if your services include hotel-style extras (such as breakfast, regular cleaning of the premises or greeting guests on arrival), you may have to charge VAT. The threshold is generally high, but it is a point worth watching to avoid nasty surprises.
Filings and accounting obligations
Managing the accounts can sometimes seem complicated. Depending on the tax regime you choose, you may need to keep detailed accounts and register with the Trade and Companies Register (Registre du Commerce et des Sociétés). The advice of an accountant can prove invaluable when navigating these occasionally choppy tax waters. Given the pressure on the property market and the criticism of the impact of short-term rentals, adjustments are regularly under consideration. Some cities, for instance, are thinking of cutting the number of days allowed for holiday rentals even further, or of raising taxes to discourage excessive use.
So keep yourself well informed about the rules in force to avoid any nasty surprises! Would you like to know more about the world of tourist and holiday letting? Take a look at our article on the second-home tenancy agreement
The table below gathers the tax points mentioned above, so you can check them at a glance.
| Tax element | What the rule says | Key point |
|---|---|---|
| Micro-BIC threshold (tourist furnished rentals) | Lowered from €77,700 to €15,000 in 2024 | Many owners now shift to the actual expenses regime |
| Standard tax allowance | Reduced from 50% to 30% | Taxable profit rises automatically |
| Tourist tax | Collected by the owner, paid on to the local council | Amount varies by location and type of accommodation |
| VAT | Due if hotel-like services are offered (breakfast, regular cleaning, check-in desk) | Threshold is high but worth watching once services are added |
| Accounting and business register | Depends on the tax regime chosen | May require detailed bookkeeping and registration with the trade register |
Frequently asked questions
Do I have to register my property before renting it out? In a high-demand area, yes. Registering the property with the town hall or the prefecture is mandatory before you list it as a furnished tourist rental. Skip that step and you are renting outside the legal framework.
How many days a year can I rent in a high-demand area? Rental duration is capped: as a rule, you cannot exceed 120 days per year. The point is to stop homes from leaving the housing stock available to residents for good. Some cities are considering lowering that ceiling further, so check the local rule before you open your calendar.
What changed for the micro-BIC scheme in 2024? Two figures moved. The threshold for furnished tourist rentals dropped from 77,700 euros to 15,000 euros, and the flat-rate allowance from 50% to 30%. Your income is still declared as industrial and commercial profits, but the maths has nothing to do with last year's.
Who pays the tourist tax, the guest or the owner? The guest owes it, but you collect it and pass it on to the municipality. The amount varies by location and type of accommodation, so the rate charged one département away tells you nothing. Show the line in your listing from the start and you avoid the conversation on departure day.
When do I have to charge VAT? When your services start to look like a hotel's: breakfast, regular cleaning of the premises, guest reception. A threshold applies and it is usually high, but the question arises as soon as you add services on top of plain accommodation. This is where owners get caught out most easily.
Do I need formal accounts and a trade register entry? It depends on the tax regime you choose. Under some regimes you will have to keep detailed accounts and register with the trade and companies register. If you are hesitating between two options, an accountant's opinion costs less than a tax reassessment.
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