Our local reporter, Jane Sheppard, has some important news to share from the French parliament. On Thursday, lawmakers passed a bill aimed at tightening regulations on tourist accommodations like Airbnb. This move aims to combat the growing shortage of affordable housing, which has become a pressing issue in the country.
France is the second-largest market for Airbnb, boasting listings in over 29,000 towns and cities. However, the National Assembly lower house, with a large majority, adopted the new bill. Only the far right voted against it.
In response to these changes, Airbnb expressed disappointment over the new restrictions, citing their potential impact on hosts. However, the company doesn’t foresee any significant impact on its own business operations.
Aimed at Curbing Short-term Rentals
The legislation, in the works since April 2023, aims to reduce tax breaks for tourist properties. This move is expected to curb short-term rentals, which have been blamed for exacerbating shortages of affordable housing. The bill’s supporters argue that the surge in Airbnb-type rentals has fueled speculation and made access to conventional housing more difficult.
“Restoring the primary function of housing is our only goal,” said Annaig Le Meur, one of the lawmakers backing the bill.
Lawmaker Inaki Echaniz highlighted the housing crisis and the explosive rise in the number of furnished tourist accommodations, which has ballooned from 300,000 to 1.2 million in just eight years.
Changes in Tax Allowances
The tax allowance for furnished tourist accommodations will drop to 50 percent from the current 71 percent. The cap will also be lowered to 77,700 euros (approximately 83,500 dollars).
- The tax breaks for non-classified tourist properties will be cut from 50 percent to 30 percent, with a cap of 15,000 euros.
- Mayors will be given a “toolbox” to regulate short-term accommodations. This includes the option to reduce the rental durations of primary residences to 90 days a year from the current 120 days.
- Local authorities will also be able to set quotas for furnished tourist accommodations.
“Hundreds of mayors, from Paris to Biarritz, from Annecy to Saint-Malo, are impatiently awaiting this proposed law,” stated Laurent Lhardit, lawmaker and deputy mayor of Marseille.
Opposition and Support
Despite the broad support, some lawmakers have denounced the legislation. Far-right lawmakers criticized the “outrageous and punitive tax system,” arguing that the law will favor hotel giants at the expense of individuals looking to earn supplementary income from their properties.
Meanwhile, representatives of the hotel industry welcomed the move. The CAT and ADN Tourisme federations stated that the new law includes measures they have been advocating for to improve the regulation of furnished tourist accommodations.
Despite the controversy, Airbnb has said it is already working with more than 350 towns and cities across France to enforce local rules. The company expressed its willingness to collaborate with municipalities to ensure that new powers are effectively used where needed.
