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?

There are two options. Micro-BIC is ideal as long as your rental income does not exceed 77,700 € a year, since it gives you a 50% allowance for expenses. The régime réel, based on actual costs, suits owners with significant business-related outlay such as works or depreciation.

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:

The penalties are not symbolic. An undeclared let in a council area where registration is compulsory can cost up to 50,000 €, and undeclared income brings tax penalties on top.

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

Every threshold mentioned so far fits into a single table, along with what each one triggers.

Figure	What it covers	What it means
120 days per year	Renting out your main home	A cap you cannot exceed
8 months per year	Definition of a main home	Minimum time you must live there
200,000 inhabitants	Second homes	Change-of-use permission may be required
€77,700	Annual rental income	Micro-BIC ceiling, 50% flat-rate allowance
€23,000	Annual rental income	Professional status, social contributions
2015	Smoke alarm	Mandatory in every home
2020	Booking platforms	Rental income reported to the tax authority
€50,000	Undeclared rental	Maximum fine you risk

The bonus: the upsides of being compliant

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

Playing by the rules also pays off. Guests trust a host who is transparent, you keep well away from administrative and legal hassle, and professional management adds value to your property.

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.

Frequently asked questions

Do I have to register my holiday rental with the town hall? Yes. French law requires you to notify your town hall of your intention to let your property as a furnished tourist rental, using form Cerfa no. 14004*04. Some municipalities accept the process online. You then receive a registration number, which platforms usually require before you can publish a listing.

How many days a year can I let my main home? 120 days at most. Your main home is where you live at least eight months a year, and the cap exists to stop homes from leaving the long-term rental market for good. Second homes are not subject to this limit.

Does a second home need a special authorisation? It escapes the 120-day cap, but a prior change-of-use authorisation may be required in cities of more than 200,000 inhabitants, such as Paris, Lyon or Marseille. Local rules differ from one municipality to the next and change often. Your town hall's housing department remains the most reliable source.

Micro-BIC or the actual expenses regime: which one should I pick? The micro-BIC applies as long as your rental income stays under 77,700 € a year and gives you a 50 % allowance for costs. The actual expenses regime fits better once you incur significant business costs, such as works or depreciation. Above 23,000 € of annual rental income you may also be treated as a professional and have to pay social security contributions.

What safety obligations apply to my property? Smoke alarms have been compulsory in every home since 2015, so fit them and test them regularly. Also check that your guests can get out quickly in an emergency and that everything works, from the sockets to the appliances. Cleanliness is part of the deal, and it is not up for negotiation.

What happens if I do not declare my rental? In a municipality where registration is compulsory, an undeclared rental can lead to a fine of up to 50,000 €. Undeclared income adds tax penalties on top. And since 2020, the platforms automatically report your rental income to the tax authorities.