The Senate recently passed a bill aimed at regulating the tourist accommodation market, such as Airbnb. This initiative, supported by cross-party measures, aims to give power back to mayors, correct a criticised tax loophole, and provide a partial response to the housing crisis by strengthening Airbnb regulations.
Cross-party support in the Senate
Sponsored by MPs Annaïg Le Meur (Renaissance) and Iñaki Echaniz (Socialist Party), this bill had already been approved by the National Assembly. It received unanimous support in the Senate, including among the ranks of the majority right wing, despite initial opposition in the Assembly. The common goal is to enable local elected officials to better regulate the increase in tourist rentals, which are often accused of reducing the supply of long-term housing.
Reduction in tax allowances for short-term Airbnb rentals
A key point of this legislation is the reduction in the tax allowance on income from short-term Airbnb rentals. Currently, this income benefits from a flat-rate allowance of 71% or 50%, depending on the case. The new law lowers this allowance to £301, except for «classified» furnished properties, which will retain an allowance of £501. This measure aims to encourage the classification of tourist accommodation, although this process can be costly.
Context of the Airbnb regulations
Many elected officials, particularly in tourist areas such as Chamonix, are alarmed by the housing shortage caused by the increase in short-term Airbnb rentals, which are favoured by advantageous tax rates. Communist senator Ian Brossat has criticised this situation, stating that landlords pay more tax when renting to employees than to tourists.
The reduction of the tax allowance to 30% aims to restore a degree of tax fairness and discourage the proliferation of unclassified tourist accommodation. However, for those who wish to continue to benefit from a higher allowance, the classification of tourist accommodation remains a viable option, albeit a more expensive one.
Impact on owners and the market
These new Airbnb regulations encourages owners to comply with classification standards in order to continue benefiting from advantageous tax relief. In addition, local elected officials will have more powers to regulate the tourist accommodation market, in the hope of freeing up housing for permanent residents.
For owners of short-term Airbnb rentals in Chamonix, using specialised concierge services such as Mana Homes can make managing their properties easier. Mana Homes offers comprehensive rental management services, ensuring optimal maintenance and a quality stay experience for travellers.
Conclusion
In summary, the new Airbnb regulations represent an important step towards regulating the tourist accommodation market and addressing concerns related to the housing shortage. The reduction of the tax allowance to 30% for unclassified short-term Airbnb rentals aims to encourage a better balance between the supply of tourist and residential housing. For owners, the adoption of these new measures may also require a reassessment of their rental and property management strategies.
To maximise tax benefits and ensure efficient management, the concierge services in Chamonix offered by Mana Homes can provide a tailored and professional solution. Contact us !
