Useful Information
Update for Landlords: Furnished accomodation for tourists
The French Digital Republic act, which came into force on 7th October 2016, will bring some changes for landlords who let furnished accommodation. From now on, owners of furnished properties who rent them for short periods, even if they rent their main property, have to register with the local mairie and/or ask for a prior authorisation to change the use of their real estate. This authorisation is already necessary for accommodation in Paris, its suburbs and towns with over 200,000 inhabitants, but now smaller towns too have decided to apply this process.
If the landlord uses the services of a real estate agent or an online platform to rent the property, it must not be rented for more than 120 days per year in the case of main residence and the registration number must be indicated.
Concerning this new online cooperative economy (rental of movable or immovable property), actual criteria to determine if the rental activity can be considered professional or not, are not adapted. In the new Social Security Act for 2017, thresholds have been proposed:
- 23,000€ for the rental of real estate,
- 7,720€ for the rental of movable property.
Beyond these limits, the activity will be considered as professional and will have to be affiliated to the French pension fund and social security; the owners will therefore have to pay social contributions. This new law should be enforced before the end of this year.
Rental activity will be more controlled in the future and, sometimes, may prove less profitable because of these new contributions.
Furnished Tourist Rentals: Regulations and Owner Obligations
⚖️ Stricter Legislation for Short-Term Rentals Since the Digital Republic Act came into effect on October 7, 2016, the rules governing furnished tourist rentals have been significantly strengthened.
Now, any owner offering furnished accommodation for short-term rentals—including their primary residence—must comply with certain administrative obligations.
👉 In particular, it is mandatory to: Register with the town hall And/or obtain authorization for a change of use of the property These regulations already apply to: Paris and its suburbs Cities with more than 200,000 inhabitants But they are now being extended to smaller municipalities.
Primary Residence: A Limit of 120 Days Per Year If you rent out your primary residence through: a real estate agency or an online platform
👉 You must adhere to a strict limit: A maximum of 120 rental days per year Furthermore: The registration number issued by the town hall must be included in your listings.
Rental Income: When Does It Become a Professional Activity? The growth of rentals via digital platforms has led to changes in tax and social security regulations. The 2017 Social Security Act sets thresholds to distinguish between non-professional and professional activity: €23,000 for real estate rentals €7,720 for movable property rentals
👉 Above these amounts: The activity is considered professional The landlord must: Register with social security Contribute to a supplementary pension fund
What are the consequences for landlords? With these new obligations: ✔️ Furnished rental activity is more regulated ✔️ There are more administrative procedures ✔️ Profitability can be impacted by: social security contributions regulatory constraints
👉 It is therefore essential to: anticipate rental income check your administrative status comply with local regulations
Conclusion: An activity that needs regulation to avoid risks Furnished tourist rentals remain an attractive opportunity, but they now require rigorous management and a thorough understanding of the regulations.
👉 To avoid penalties and tax adjustments, owners must: Comply with reporting requirements Monitor their income Adapt their rental strategy