Stricter rules on short-term tourist lettings will soon come into effect in France after the Assemblée nationale definitively adopted a new law on the matter on Thursday (November 7).

It gives communes greater autonomy in managing short-term tourist lets, including implementing quotas or zoning off sections of new-build developments to be exclusively for main residences. 

However, key changes also see tax allowances for short-term lets drop to fall partly in line with long-term counterparts. 

It comes after months of debate – and an accidental change in the law during budget discussions in 2023 – between MPs and Senators.

Rental site Airbnb criticised the decision:

“Although we do not anticipate a significant impact on our business, the drop in the frequency with which the French can rent out their accommodation on a short-term basis is likely to harm many families,” it said in response to the changes. 

The rules are likely to come into force at some point in 2025, potentially as early as January. 

What are the main changes? 

The major financial change is a drop in tax reductions for owners who let out their properties in the short term. 

Currently, those who let out classified tourist rentals (a procedure that gives it an official star rating) benefit from up to 71% in tax reductions (to cover expenses associated with renting), provided income from renting does not exceed €188,700 per year.

This is the case if they declare expenses using the simplified micro-Bic system.

Owners letting out unclassified rentals on a short-term basis benefit from a 50% reduction, provided income does not exceed €77,700 (also under the same system).

These reductions will be dropped to 50% and 30% respectively, with income limits changing to €77,700 in the case of the former and €15,000 for the latter.

It means the tax allowances for unclassified lets will be the same for those renting short-term and long-term, which lawmakers hope will spur more people into putting their properties up for rent throughout the year, lessening the housing shortage in these areas.

The law will also allow all communes to put a quota on the number of short-term rentals on offer, as well as a maximum 90-day limit on properties being available for short-term lets, if they choose (both of which already the case in some major cities). 

In addition, properties set to be let on a short-term basis will also need to undergo an energy performance assessment (diagnostic de performance énergétique, or DPE) before they can go on the market, as is the case for their long-term counterparts.

Properties will need to be at least an ‘E’ rating when the law first comes into force, and by 2034, at least a ‘D’. 

“It’s really a law that allows us to improve the balance between the tourist population and the permanent population,” said Eric Fournier, the mayor of Chamonix (Haute-Savoie) to France Info. 

Stricter measures in the future?

Despite the planned changes, some believe more can be done to prevent housing shortages worsen in tourist-heavy areas. 

The law passed by the Assemblée nationale is the result of compromise between MPs and Senators, particularly over tax reductions. 

Certain MPs wanted to see even further reductions to tax allowances, but Senators wanted to keep them at current levels (prior to the incoming law), resulting in the above compromise.

The Senate previously agreed to the draft bill on Tuesday (November 5). Only far-right politicians from the Rassemblement National voted against the text.

“We will continue to argue in the context of the budget for the need to bring the tax system into line with that for short and long-term lets,” said Socialist MP Iñaki Echaniz, who spearheaded the bill. 

In particular, the MP wants to see tax reductions for short-term classified rentals reduced to be in line with long-term counterparts.

The full text of the law can be seen in a press release by the Socialist MP here.