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!
If you are an owner, tenant, curious reader or simply someone who loves clear, concise legislation (who isn’t, really ?), this article is for you ! Let’s set off together on an informative journey where the terms "regulation" and "furnished tourist accommodation" will become your new friends.
What is a furnished tourist accommodation ?
A furnished tourist accommodation is a bit like your second home, except you share it with passing strangers. More formally, it is a furnished dwelling that is rented to guests for a short period. These properties are the perfect alternative for those seeking a warmer, more personal experience than a hotel. But beware, it’s not the Wild West ! The law keeps a close eye on things.
Current Regulation in High-Pressure Housing Areas
Definition of High-Pressure Areas
The high-pressure housing areas are those places where finding accommodation can feel like an obstacle course. These areas are often cities where demand for housing is so high it could push prices through the roof if not kept in check by regulation.
Registration and Authorisation
To rent out a property as a furnished tourist accommodation in these areas, you must clear a few administrative hoops. First, registering your property with the town hall or prefecture is mandatory. It’s a bit like getting a visa for your flat !
Length of Lettings
Rental periods are also regulated. You generally cannot rent your property for more than 120 days per year, to ensure homes are not used solely for holiday lets at the expense of locals seeking a main residence.
Taxation of furnished tourist accommodation
Taxation of Rental Income
Income generated by renting furnished tourist accommodation is considered "Industrial and Commercial Profits" (BIC).
You therefore must declare it, but rest assured there are simplified regimes such as the micro-BIC.
In 2024 there were changes on this subject.
Under that regime, the previous threshold was set at 77 700 € for furnished tourist accommodation. It is now 15 000 €. The flat-rate allowance has also been changed. It was 50%, it is now 30%.
The Tourist Tax
Ah, the famous tourist tax ! This small contribution is collected by the municipality and varies depending on location and type of property.
It is payable by the tourists, but as the owner it is your responsibility to collect and remit it. A bit like acting as the tax collector for your own little tourist realm.
VAT and Specific Rules
In some cases, if your services include provisions comparable to those of hotels (such as breakfast, regular cleaning, reception of customers), you may have to charge VAT. The threshold for this is generally high, but it’s a point not to be overlooked to avoid unpleasant surprises.
Declarations and Accounting Obligations
Accounting management can sometimes seem complex. Depending on the tax regime chosen, you may need to keep detailed accounts and register with the Registre du Commerce et des Sociétés. The advice of a chartered accountant can prove valuable for navigating these sometimes turbulent fiscal waters.Facing pressure on the housing market and criticism of the impact of short-term rentals, adjustments are regularly considered. For example, some cities are thinking of further reducing the number of days allowed for holiday rental, or increasing taxes to discourage excessive use.
So stay well informed of new regulations in force to avoid any nasty surprises ! Would you like to learn more about the world of tourist and holiday rental ? Quickly discover our article on The lease for a second home
The table below gathers the fiscal points mentioned above, so you can see them at a glance.
| Tax element | What the rule says | Key point |
|---|---|---|
| Micro-BIC threshold (furnished tourist accommodation) | Reduced from 77 700 € to 15 000 € in 2024 | Many landlords are moving to the actual regime |
| Flat-rate allowance | Reduced from 50% to 30% | Taxable profit mechanically increases |
| Tourist tax | Collected by the owner, remitted to the municipality | Amount varies by location and property type |
| VAT | Due if hotel-like services provided (breakfast, regular cleaning, reception) | High threshold but to be monitored when adding services |
| Accounting and RCS | Depends on the tax regime chosen | May require detailed accounts and registration with the RCS |
Frequently Asked Questions
Do you have to register your property before letting it ? In high-pressure housing areas, yes. Registration of the property with the town hall or prefecture is mandatory before any letting as a furnished tourist accommodation. Without this administrative step, you are letting outside the regulatory framework.
How many days per year can you let in a high-pressure area ? Letting duration is restricted: as a rule, you cannot exceed 120 days per year. The aim is to prevent homes from being permanently removed from the stock available to residents. Some cities are considering lowering this cap further, so check the local rule before opening your calendar.
What changed for micro-BIC in 2024 ? Two figures have moved. The threshold for furnished tourist accommodation has gone 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 calculation is nothing like last year’s.
Who pays the tourist tax, the guest or the owner ? It is payable by the tourist, but you are the one who collects and remits it to the municipality. Its amount varies according to location and property type, so a neighbour’s rate in another department tells you nothing. Include the line in the listing to avoid discussion at departure.
When must VAT be charged ? When your services approach those of a hotel: breakfast, regular cleaning, reception of customers. A threshold applies and it is generally high, but the question arises as soon as you add services to simple accommodation. This is the point where an owner is most easily caught out.
Do you need to keep accounts and register with the RCS ? It depends on the tax regime you choose. Under certain regimes you may have to keep detailed accounts and register with the Registre du Commerce et des Sociétés. If you hesitate between two options, advice from a chartered accountant costs less than a tax reassessment.
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