The anti-Airbnb law, adopted in France, imposes a series of restrictions aimed at curbing short-term rentals, effective November 2024. It reflects the government's concerns about tensions in the housing market, particularly in major cities and tourist areas. It marks a turning point for owners and investors of properties used for tourist or short-term rentals, and a response to the concerns of residents, who are often faced with rising rents and housing shortages.
In this article, we break down the key elements of this Airbnb law, the reasons for its implementation, and the different adaptation strategies for owners.
Why was the Anti-Airbnb law put in place?
The rise of rental platforms like Airbnb and Booking has transformed residential neighborhoods in our cities into tourist areas, particularly in urban centers and attractive regions. This phenomenon has generated several undesirable effects:
• Reduction in available housing for residents (short-term rentals) : many landlords prefer to rent their properties on a short-term basis to maximize their profits, which limits the housing supply for local tenants. Alternatively, they rent their properties out long-term during the off-season and switch to short-term rentals when the peak season arrives.
• Rising rents : with a reduced supply of housing for residents, rents are rising, creating precarious situations for inhabitants. There is more demand than supply, leading to the phenomenon of supply exceeding demand.
• Neighborhood transformation : some areas, formerly residential, have become tourist hubs, often at the expense of the local quality of life. Today, we are seeing increasing complaints from residents, as well as the introduction of short-term rental bans in condominium management contracts.
• Increased competition for the hotel industry : traditional hotels face direct competition from short-term rentals, impacting the sector. Short-term rentals directly compete with hotels by offering more comprehensive services, such as meals, at a lower cost.
Faced with this situation, the French government is following the trend set by Barcelona and New York and seeking to regulate the sector to encourage landlords to prioritize long-term rentals, thereby stabilizing the market and meeting residents' needs. The French government aims to restore a balance in the market between long-term rentals, which provide affordable housing, and short-term rentals, which cater to the diverse needs of tourists.
What is the anti-Airbnb law?
The new Airbnb law introduces several restrictions to regulate tourist rentals. These measures aim to hold owners accountable and provide municipalities with the necessary tools to manage the impact of these rentals on their territory.
1. A stricter tax framework: end of the tax loophole
The law imposes changes to tax allowances for short-term furnished rentals. It particularly affects unclassified rentals, for which tax benefits are reduced, making this type of activity less attractive. From 2025, the taxation of furnished tourist accommodations becomes less advantageous, marking a turning point for owners. The tax allowance under the "micro-BIC" regime is reduced:
- Unclassified Furnished Apartments :
• The tax allowance has been reduced from 50% to 30%, with a cap of €15,000 in rental income (down from €77,700 previously). This aims to limit the attractiveness of rentals that do not meet specific quality criteria.
- Furnished Classified Accommodation and Bed & Breakfasts :
• The tax allowance has been reduced from 71% to 50%, with a ceiling of €77,700 (compared to €188,700 previously). These properties meet specific comfort criteria.
These measures are gradually aligning the taxation of short-term rentals with that of long-term rentals, thus encouraging a return of these properties to the traditional residential market. Owners of tourist rentals must declare a higher tax base, potentially increasing their tax liability. This could incentivize a shift towards long-term rentals, which are now more tax-efficient for many owners.
2. New powers for town halls
Here is a clear and concise explanation of the new powers granted to municipalities regarding the regulation of furnished tourist accommodations. The new legislation gives mayors expanded tools to better control the growth of furnished tourist rentals and protect access to residential housing. Here are the main changes:
- Rental period limitation:
Municipalities will be able to reduce the maximum rental period for primary residences to 90 days per year (compared to 120 days previously).
- Quotas and reserved areas:
Mayors will be able to establish quotas for furnished tourist accommodation and reserve certain areas, via the local urban plan (PLU) , for the construction of primary residences, particularly in tense areas or those with more than 20% secondary residences.
- Registration at the municipal level is mandatory:
A unique registration number will be required for all rentals, facilitating checks and limiting fraud. This system will be fully implemented by May 2026.
- Sanctions and fines :
Financial penalties are being strengthened to deter offenses:
• €5,000 fine for a property not declared at the town hall
• €10,000 fine for exceeding the maximum number of nights stayed,
• €50,000 for platforms that do not comply with their legal obligations.
- Regulation of change of use
The municipalities will be able to:
- requiring permits to convert premises (offices, shops) into furnished tourist accommodation, without the approval of the prefect.
- They will ask the platforms to provide information on properties rented within their territory. Furthermore, they will have the right to conduct inspections to monitor rentals.
- Platforms will have to submit annually a list of addresses and registration numbers of rented properties, thus simplifying controls.
These new measures aim to curb property speculation, encourage long-term rentals, and preserve the balance of local areas. However, they impose more constraints on landlords in response to increasing pressure on local housing markets.
3. Furnished tourist accommodations subject to Energy Performance Diagnosis (DPE):
The new legislation extends energy performance certificate (EPC) requirements to furnished tourist accommodations to strengthen their environmental compliance. This measure is central to the anti-Airbnb law.
Key measures for the new Airbnb law:
- Progressive energy performance requirements :
2025: ban on G-rated housing.
2028: ban on F-classified housing.
2034: obligation for all furnished accommodations to be classified between A and D.
- Zones and exclusions :
Applicable only in high-demand areas requiring a change of use.
Excludes primary residences and overseas properties.
- Sanctions :
A maximum fine of €5,000 for non-compliance.
The goal is to eliminate energy-inefficient properties in tourist rentals, limiting their impact on the traditional housing market and the environment. Owners will have 10 years to comply with the Climate and Resilience Law, or risk losing their ability to rent.
Other measures of the new Airbnb law
Beyond taxation and energy performance certificates (EPCs), the anti-Airbnb law introduces provisions to better regulate short-term rentals.
- Stricter sanctions :
Failure to register: fine of €5,000 .
False registration number: fine of €15,000 .
- Limitation on renting out primary residences :
Reduced threshold from 120 to 90 days/year .
- Condominium regulations :
A ban on seasonal rentals is possible with a 2/3 majority, instead of unanimity.
Mandatory information for property managers for any rental agreement.
- Strengthening of Controls :
Particularly with the approach of major events such as the Paris Olympic Games, concerts, sporting events, cultural events etc... These measures aim to limit abuses, improve transparency and preserve access to housing.
Consequences of the Airbnb law for the real estate market and the rental sector
- Rent Reduction : By discouraging short-term rentals, the law could help increase the supply of long-term rental properties, which, in the long run, could stabilize rents in high-demand areas.
- Return of housing for local residents : the reduction of available tourist accommodation could free up properties for permanent residents, thus improving access to housing for residents.
- Impact on the tourism sector : fewer short-term accommodations could impact visitors seeking an alternative to hotels, which could have economic repercussions for some tourist areas.
- Evolution of real estate investments : investors may turn to long-term rentals or to alternatives such as shared accommodation, which are less profitable but more stable and compliant with regulations.
The anti-Airbnb law marks a turning point for the regulation of short-term rentals in France, imposing significant changes on landlords and their business models. While it addresses a growing need for residential housing, it presents a challenge for those who relied on tourist rentals to generate high incomes. Landlords must now demonstrate flexibility and adaptability to remain competitive and compliant, while also contributing to a more balanced and accessible rental market.