15 Oct How New French Regulations Are Making Airbnb Less Attractive
In France, the regulatory landscape for short-term rentals — especially via platforms like Airbnb — has tightened significantly. The national law Loi n° 2024-1039 du 19 November 2024 (the Loi Le Meur) gives cities new tools to control furnished tourist rentals.
Under this framework, municipalities can now reduce the maximum number of rental days for a primary residence — for instance, Paris lowered the limit from 120 days to 90 starting January 2025. They can also require prior authorisation for converting offices or secondary homes into short-term rentals, a process where around 80 % of requests are refused.
The Conseil d’État, France’s highest administrative court, recently upheld these restrictions, confirming that local governments may limit short-term rentals without violating property rights. Paris has also adopted a new urban plan (PLU) banning the creation of new tourist rentals across much of the central city.
To enforce compliance, the city has expanded its inspection teams and raised penalties. Renting without proper authorisation now carries fines of up to €100 000 per property, plus daily penalties until regularisation. Platforms and intermediaries that facilitate illegal rentals can also face equivalent sanctions.
The Tax Dimension
Taxation further adds to the growing constraints. Short-term rental income in France is treated as industrial and commercial income (BIC), not as passive property income. This means owners must declare it under one of two regimes: the simplified micro-BIC (with a 50 % or 71 % allowance depending on classification) or the régime réel, which requires full accounting and allows deduction of actual expenses.
Frequent or high-volume rentals can lead to a reclassification as a professional furnished-rental activity (LMP), triggering social contributions (URSSAF) and sometimes corporate taxation. On top of this, all rentals are subject to the “taxe de séjour” — a tourist tax automatically collected by platforms like Airbnb and remitted to municipalities.
Combined with the new restrictions on rental duration, the increasing administrative and fiscal burden significantly reduces the profitability of Airbnb operations. For many small landlords, the effort and compliance costs now outweigh the potential gains.
A Shrinking Margin
When factoring in management fees, maintenance, and tourist-tax obligations, the actual yield on such a property can easily fall below 3 %, far less than traditional long-term rentals or other low-risk investments.
For many small landlords, Airbnb has shifted from a lucrative side income to a heavily regulated activity that requires administrative rigor and carries substantial fiscal exposure. The message is clear: short-term rentals in France are no longer the easy profit they once were.
Frequent or high-volume rentals can lead to a reclassification as a professional furnished-rental activity (LMP), triggering social contributions (URSSAF) and sometimes corporate taxation. On top of this, all rentals are subject to the “taxe de séjour” — a tourist tax automatically collected by platforms like Airbnb and remitted to municipalities.
Combined with the new restrictions on rental duration, the increasing administrative and fiscal burden significantly reduces the profitability of Airbnb operations. For many small landlords, the effort and compliance costs now outweigh the potential gains.
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