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