What rules apply to holiday letting?

Holiday letting is booming! Plenty of owners are taking the plunge to top up their income or make a property work harder for them. That said, where there is money to be made, there is usually a legal framework. And yes, even to let out your lovely studio with a sea view or your cosy mountain chalet, strict rules apply.

What counts as a holiday let?

Before looking at the regulations, it is worth being clear on what a holiday let actually is. A holiday let is any furnished property let for a short period, generally to a passing clientele, and on a repeated basis. Whether you use platforms such as Airbnb or manage your bookings the old-fashioned way (thank you, Excel), your activity is governed by specific rules.

Declaring your activity: an unavoidable step

Why declare your holiday let?

French law requires you to notify your local town hall of your intention to let your property as furnished tourist accommodation. This allows local authorities to track how the tourism offering is developing and to check that your activity complies with planning and tax rules.

How do you go about it?

1. Fill in form Cerfa no. 14004*04: a forbidding name for a simple formality!
2. Submit the form to your town hall. If you are lucky, some councils even accept online applications.

Once this step is done, you will receive a registration number. Be aware that this number is often mandatory in order to publish a listing on holiday letting platforms.

Respecting the limits on letting your main home

In France, if you let your main residence (the place where you live for at least eight months a year), one strict rule applies: you may not let it for more than 120 days a year. This cap is designed to protect the conventional rental market and to avoid a long-term housing shortage.

What about second homes?

Ah, second homes, those little havens of peace! Letting these properties is not subject to the 120-day limit, but it may require prior authorisation for a change of use if you are in a city of more than 200,000 inhabitants (hello Paris, Lyon, Marseille and friends).

Tax rules: get your calculator out!

Holiday letting does not escape the taxman. You must declare your rental income, even if your property is only let for a few days a year.

Which tax regime should you choose?

• Micro-BIC: ideal if your rental income does not exceed 77,700 € a year. You benefit from a 50% allowance for expenses.
• Régime réel (actual costs): better suited to those with significant business-related outlay (works, depreciation and so on).

And do not forget: above 23,000 € of rental income a year, you may be treated as a professional and have to pay social security contributions.

Meeting safety and hygiene standards

To give your guests a memorable (and safe) stay, your property must meet certain safety and hygiene standards. Here are the essentials:

• Smoke alarms: mandatory in all homes since 2015. Fit them and test them regularly!
• Emergency exits: make sure your guests can get out quickly in an emergency.
• Equipment in good working order: from plug sockets to white goods, everything must work perfectly.
• Spotless cleanliness: a crucial point, especially since the pandemic.

Local regulations: a potential headache

Some cities have brought in additional rules to govern holiday letting. Paris, for example, requires a registration number and imposes constraints on second homes. Other councils, such as Nice or Bordeaux, may limit the number of days or ask for specific commitments in return.

A tip for keeping up to date:

Check your town hall's website regularly, or contact its housing department to find out about the latest changes.

Holiday letting platforms: partners or accomplices?

Platforms such as Airbnb, Booking and Abritel have made it far easier for owners and guests to find each other. But they do not release you from your legal responsibilities. Since 2020, these platforms have had to report your rental income automatically to the tax authorities. So there is no point playing hide-and-seek with the taxman!

Watch out for penalties!

If the rules are not followed, the penalties can be severe. For example:

• A fine of up to 50,000 € for an undeclared let in a council area where registration is compulsory.
• Tax penalties for undeclared income.

In short, it is far better to play by the rules and avoid nasty surprises.

The bonus: the upsides of being compliant

Following the rules can feel tedious at times, but it also brings real benefits:

• Greater trust from your guests, who appreciate the transparency.
• Peace of mind for you, well away from administrative and legal hassle.
• Added value for your property, thanks to professional management.

Holiday letting can be an excellent source of income, but it does mean sticking to a precise legal framework. By following these rules, you give your guests an enjoyable stay while protecting your own interests. So, ready to welcome your next guests by the book? Do check for legislative changes regularly, because the holiday letting sector is constantly evolving.