Last Updated: July 2025 – Thinking of investing in short-term rentals (à la Airbnb) in France? You’re not alone. But be warned: France has tightened the screws on vacation rentals with new laws (notably the “loi Le Meur” of 19 November 2024) aimed at protecting the long-term housing market. The result is a patchwork of national rules and local quirks – especially in Paris – that every investor must navigate. Don’t worry, we’ll break it all down in plain English so let’s dive in.
Primary vs Secondary Residences: Know the Difference
In France, the rules differ significantly depending on whether the property is your résidence principale (primary home) or a résidence secondaire (secondary home). Here’s the gist:
- Primary Residence (Résidence Principale): This is the home you personally occupy at least 8 months a year (the legal definition). You are allowed to rent it out to tourists, but only for a limited time per year. Nationally, the cap was 120 nights per calendar year, and since 2025, local authorities can reduce that to 90 nights. In fact, Paris has already lowered the limit to 90 nights per year for primary residences. That means if you live in Paris and want to Airbnb your flat while you’re away, you can do so up to 90 nights a year – no more. This limit is enforced by platforms (Airbnb will automatically disable your listing after reaching the cap) and violators face hefty fines (we’ll cover those soon).
- Secondary Residence (Résidence Secondaire): This is any property you don’t live in most of the year – essentially an investment or vacation home. Here’s where it gets stricter. In many desirable cities (Paris, Lyon, Bordeaux, Nice, etc.), you cannot legally rent out a secondary home on Airbnb at all without obtaining a special permission called a changement d’usage (change of use authorization). Why? Because converting a full-time residence into a tourist accommodation is seen as removing a home from the local housing supply. Cities like Paris consider this a change of use from “residential” to “commercial,” and they require you to apply for permission first. In Paris, that permission also comes with a daunting compensation requirement – for every square meter you turn into a short-term rental, you must convert an equivalent commercial space into residential use! (Yes, you read that right: you might need to buy a shop or office and turn it into an apartment to compensate for using an apartment as a holiday let.). Outside of the big cities or tourist hot-spots, secondary residences might face fewer hurdles – some smaller towns don’t require formal permission – but you still must declare the rental to the local mairie (city hall) in all cases.
Why the distinction? France wants to allow people to occasionally rent out their own home (e.g. while on vacation) – that’s the 120/90-night rule for primary residences – but it’s cracking down on investors running pseudo-hotels in residential properties. A primary home used within the night limits isn’t considered a permanent loss to the housing market, whereas a secondary home turned full-time Airbnb is.
Registration with the City: The Mandatory Déclaration
No matter if it’s your primary or secondary residence, French law requires that you declare any furnished tourist rental to the local authorities. Practically, this means obtaining a registration number (numéro d’enregistrement) from the city, which must be displayed in your listing. Initially, only major cities imposed this, but the new law extends it countrywide, including for your primary residence: by May 2026, every short-term rental in France must be registered through a national online portal . The registration process is usually free and done online (many cities, including Paris, have a dedicated website).
If you fail to register when required, watch out! The penalties are harsh: a fine of up to €10,000 for not registering at all, and up to €20,000 if you provide false information or use a fake registration number. The good news is that once you’re registered, city officials can use that number to better monitor compliance – so it’s in your interest to play by the rules.
Special case – Primary residences in smaller towns: Not all towns had implemented a registration system for primary homes in the past. Some smaller cities might still allow a standard “declaration”, compared to the formal registration, because they don’t have an active registration platform. However, under the new law, even they will need to comply by 2026. If you’re unsure, check with your mairie. As of now, places like Paris, Lyon, Nice and other large or tourist-heavy cities definitely require registration for any Airbnb-type rental , primary or not. In those cities, once you register, the city will issue you an official ID number, and Airbnb will usually prompt you to enter it on your listing.
What about that change-of-use authorization? That comes in addition to the registration number for secondary residences in regulated cities. Registering a rental does not by itself legalize a secondary-home rental in Paris or similar cities – you still need the city’s authorization to change its use. Think of it this way:
- Step 1: If required in your city, apply for authorisation de changement d’usage for a secondary property (and fulfill any conditions like compensation). This is essentially asking, “May I use this apartment as a tourist rental instead of a regular home?”
- Step 2: Declare the rental and get your registration number (numéro) from the city’s portal. This step is required everywhere for short-term rentals (and for all rentals in Paris). It’s basically telling the city “Here’s the address and details of my rental; I agree to follow the rules.”
If that sounds bureaucratic, well…it is! On the bright side, the online registration is usually straightforward, and you get your number immediately or within a few days via email. It’s mainly the change-of-use authorization (for secondary homes) that can be a major hurdle.
New Energy Efficiency Requirement (DPE) – The 2025 Game Changer
One of the biggest new obligations from the loi Le Meur is about energy efficiency. France has been on a campaign to ban energy-guzzling properties (“passoires thermiques”) from the rental market, and now this extends to Airbnbs:
- Starting in 2025, any new tourist rental in a zone tendue (a housing “high-pressure” zone, which includes Paris and most large cities) must have an Energy Performance Certificate (DPE) with a rating of at least class F. In practice, this means if your secondary residence is in, say, Paris and you apply in 2025 for a change-of-use to rent it out, you’ll need to show a DPE report and the property can’t be in the worst G category. (Classes range from A = excellent to G = terrible.) As of 2025, G is out. By 2028, the minimum will tighten to class E for new rentals in these zones.
- By 2034, the rule goes even further: all short-term rentals in France (new and existing, in all areas) will need to have a DPE of D or better. Essentially, F and G will be completely outlawed for tourist rentals at that point, and even primary residences won’t be exempt anymore.
- Primary residences exempt (for now): The energy rule does not apply to rentals of your own primary home (within those 90/120-day limits). So if you’re just Airbnb-ing your apartment while you travel, don’t worry – nobody’s asking for your DPE (yet). Likewise, overseas French territories (DROM) are currently exempt. But a secondary home in a city like Paris, Lyon, etc. does fall under this rule immediately.
What does this mean for investors? First, get a DPE done on any property you’re considering renting out. It’s obligatory to have a DPE report whenever you sell or rent property in France anyway, so this is not out of the ordinary. But now it’s also a gatekeeping mechanism: a very low energy rating can disqualify your Airbnb plans. If your property is a historic but poorly insulated apartment, be prepared to invest in energy upgrades or face a ban on short-term letting.
The mairie in Paris, for example, now conditions the change-of-use permit on an energy rating between A and E (A through E are allowed). If you’re a landlord with a heat-sieve studio (rating F/G), you’ll be denied the permit – effectively sidelining your Airbnb business before it starts. The broader goal here is twofold: protect tenants and neighbors from subpar housing and close a loophole where landlords of inefficient units were avoiding the long-term rental ban by shifting to Airbnbs.
Penalties for Non-Compliance: Hefty Fines and More
So, what if you don’t follow these rules? In true French fashion, there’s an arsenal of fines and sanctions that can hit your wallet hard. Here are the major ones to be aware of, as of 2025:
- Exceeding the Night Limit (Primary Residences): If your city has adopted the 120-night cap (or 90-night cap), don’t even think about skirting it. The law sets a maximum civil fine of €15,000 if you rent out your primary home beyond the authorized number of nights per year. Paris, now at 90 nights, has explicitly warned it will use this power aggressively – e.g. renting 120 nights when only 90 are allowed could cost you €15,000 in fines. Moreover, platforms like Airbnb are required to automatically block your listing once you hit the limit, so it’s hard to go over unless you try to outsmart the system with multiple listings (which the city might still catch, and then you’re definitely a “fraudster” in their eyes).
- Failing to Register the Rental: As noted, not registering your meublé touristique with the mairie can trigger up to a €10,000 fine under the new law. This is a big jump from the previous €450 fine for ignoring local registration rules. Clearly, lawmakers were tired of hosts ignoring the declaration requirement, so they cranked up the penalty to get everyone’s attention. Also, providing false information (say, misclassifying a secondary home as a primary, or giving a bogus name/address) can lead to €20,000 in fines. In short: be honest and get that registration number.
- Illegal Change of Use (Secondary Residences without Authorization): This is the big one in cities like Paris. If you rent out a secondary property short-term without the required permit, you risk a civil fine up to €50,000 per property under the housing code. And guess what – Paris successfully lobbied for even tougher punishment: the city now says those fines can be doubled to €100,000 per apartment in the worst cases. In practice, the fine is determined by a judge if the city takes you to court, and Paris has not shied away from doing so. They have inspectors who book apartments on Airbnb as “mystery guests” to catch illegal rentals, and numerous legal battles have been fought. The new law “Le Meur” also made it easier for cities to prove an apartment is being used illegally (e.g. by using data from Airbnb), so owners can’t hide behind a lack of evidence. If you’re thinking of quietly running an Airbnb in a second home in central Paris without authorization – don’t. The potential fine could wipe out years of rental profits in one blow, although it’s unlikely that you receive the maximum fine if it’s your first offense.
- Daily Fines and Injunctions: On top of those one-time fines, courts can order you to stop renting and even impose a daily penalty (astreinte) of €1,000 per day per square meter until the property is returned to proper residential use. For example, a 30 m² studio illegally rented could rack up €30,000 per day in theory. This sounds extreme, but it’s meant to scare persistent offenders into compliance. The city can also order you to revert the property back to long-term residential use.
- Other Sanctions: If you somehow rent out a property that’s unsafe or unsanitary, authorities can suspend your rental activity. Also, if you use an agent or platform, they are supposed to inform you of your obligations and even collect an attestation sur l’honneur (sworn statement) from you confirming you’re compliant. This means third-party intermediaries can refuse to list your place if you don’t provide a registration number or if you admit it’s a secondary without permit. They too can be held accountable if they knowingly list illegal rentals.
In summary, France isn’t playing around. The combination of higher fines and automated platform enforcement is making it much harder to “sneak under the radar.” Investors should budget for compliance costs (e.g. maybe doing renovations to get that DPE up to code) rather than budget for paying fines. As Jacques Baudrier, a Paris official, bluntly put it, “fraudsters will lose ten times more cases and pay twice as much” under the new regime.
Taxes and Finances: From Micro-BIC to Social Charges
Alright, let’s shift from legalese to money matters. How are your Airbnb earnings taxed in France, and what’s the best regime to choose? Here’s an overview of the key points – and how they compare to the UK.
Rental Income = Business Income: In France, income from furnished rentals is not taxed as passive “rent” income; instead it falls under the category of BIC (Bénéfices Industriels et Commerciaux) – i.e. commercial profits . Don’t be alarmed by the term; it doesn’t mean you need to form a company. It just means the tax system treats you a bit like a small business. In practice, you’ll declare this income on your personal tax return under the BIC section, not the real estate income section.
Two Tax Regimes – Micro-BIC vs. Régime Réel
Micro-BIC is a simplified regime for small landlords. If your gross rental revenues don’t exceed a certain threshold, you qualify automatically. Under micro-BIC, you don’t deduct actual expenses; instead, you get a flat allowance (abatement forfaitaire) that covers your expenses. Importantly, as of 2025 this allowance was reduced for short-term rentals to make the tax less “generous” . Now, if your property is an official “classified” holiday rental (or a B&B room), you get a 50% deduction (down from the previous 71%!) on your gross rents, and this applies up to €77,700 of annual revenue (previously up to €188,700) . For non-classified rentals (the majority of Airbnb-style flats), the deduction is only 30% (down from 50% before), and the revenue threshold for micro-BIC is a mere €15,000 per year . In other words, if you earn more than €15k from an unclassified short-term rental (Airbnb-style flats), you can no longer use micro-BIC at all – you’ll be bumped into the real regime. Example: If you have a non-classified rental grossing €10,000 a year, under micro-BIC you’d subtract 30% (€3,000) as a fixed expense allowance and pay tax on the remaining €7,000. If you made €20,000, micro-BIC wouldn’t be available (over the threshold). The rules are pretty complicated but you can reach out to us if you need a consultation.
Régime Réel is the standard or “actual” regime. Under this regime, you declare your rental income minus the actual expenses (réel means real, as in real expenses). There is no arbitrary abatement – you list your allowable costs and deduct them, much like a business profit/loss statement. What can you deduct? Pretty much all expenses related to the rental: mortgage interest, property taxes, insurance, maintenance, utilities you pay, property management fees, accounting fees, etc., plus depreciation of the property and furnishings . Depreciation (amortissement) is a powerful deduction in France – you can depreciate the property (excluding land value) over perhaps 25-40 years and furniture over 5-10 years, which often creates a large paper expense each year. In fact, many landlords end up with zero taxable profit under régime réel because the depreciation and expenses outweigh the rental income – even though you might be cash-flow positive in reality. One catch: under French rules, depreciation cannot create a taxable loss (any excess depreciation is carried forward) . Also, if you do have a true net loss (expenses > income), as a non-professional landlord you can only carry that loss forward against future rental profits (for up to 10 years) – you can’t deduct it against your other personal income. Still, régime réel often beats micro-BIC if you have high expenses or if the new lower abatements don’t cover much. You can opt for régime réel even if you’re below the micro-BIC threshold, but note that choosing this option binds you for at least 3 years.
Which to choose? If your rental is very profitable with few expenses, micro-BIC (with its 30% or 50% automatic deduction depending on the type of rental) might be simpler and favorable – it’s minimal paperwork. But given the drastic cut in the allowances from 2025, many Airbnb hosts will find micro-BIC less attractive. For example, a non-classified rental with €50k revenue used to only pay tax on €25k (50% abatement); now it would pay tax on €35k (only 30% off) – quite a difference in taxable base. And since €50k exceeds the new €15k cap, you’d be forced into régime réel anyway. Many investors will likely switch to régime réel to deduct actual costs like mortgages, which can easily exceed 30% of revenue. Under the régime réel, you can also strategically amortize renovation costs and furnishings. Keep in mind if you have multiple furnished rentals, the regime choice applies to all of them collectively (you can’t mix micro on one and régime réel on another in the same year).
Getting a SIRET (Business ID)
Because rental income is treated as business income, you are supposed to register your activity with the local Centre de Formalités des Entreprises (CFE) or its new online portal, to obtain a SIRET number. Don’t panic – this does not mean you’re incorporating or that you’ll be hit with corporation tax or anything. It’s just an ID in the INSEE Sirene registry to identify your rental business for tax and statistical purposes. Registration is free. Typically, you would register as a Loueur en Meublé Non Professionnel (LMNP) if you’re renting personally and not a company. This can now be done through a one-stop website (guichet entreprises). Upon registering, you’ll get a 14-digit SIRET number, which you’ll use on tax declarations and when paying any social contributions. Many people renting on Airbnb in France have done this already; if you’re new, don’t skip it. In fact, you must provide the SIRET on your annual French income tax return for BIC income, and platforms like Airbnb report host earnings to the tax authorities (since 2019) so the taxman knows you’re renting anyway. Bottom line: getting a SIRET is a normal part of the process and keeps you in the system legally.
Social Charges (Cotisations Sociales)
In France, rental income (even from Airbnb) can be subject to social contributions, in addition to income tax. For most casual landlords, these take the form of prélèvements sociaux on investment income, which total 17.2% of your net rental profits. Yes, 17.2% flat. This is analogous to National Insurance. If you are a French tax resident, you pay them outright. If you are a non-resident, you also currently pay them on French rental income (Brits, since Brexit, definitely pay the full 17.2%; EU/EEA residents might get a reduced rate or exemption if they pay social security at home, but that’s another story). The 17.2% is composed of CSG, CRDS, etc., and is levied on your taxable rental income after expenses (or after the micro-BIC abatement).
Local Taxes
France doesn’t have an exact equivalent to UK council tax for owners (the local residence taxe d’habitation was removed for primary homes, but second homes still pay it for now). However, one business-related local tax to watch is the CFE (Cotisation Foncière des Entreprises). This is essentially a business rates/tax that can apply to rental activities. Many small landlords renting their primary residence or just one property have been exempt, but if you’re renting a whole property as an Airbnb business, you might receive a CFE bill. The amount varies by commune and is based on the notional rental value of the property. Paris, for instance, started cracking down on CFE for Airbnb hosts a few years back. There are exemptions: renting part of your main home occasionally is exempt, and municipalities can choose to exempt rentals of a primary residence entirely . But if you rent a secondary home, expect to pay CFE – budget a few hundred euros a year for that. Always check with the local SIE (Service des Impôts des Entreprises) where the property is located to see if you need to file CFE.
Paris: A World of Its Own
No discussion of Airbnb in France is complete without a spotlight on Paris, the country’s most visited city and ground zero for the Airbnb controversy. Paris was one of the first cities in France to enforce the 120-night rule and to sue operators of illegal rentals. Now it’s doubling down further. If you plan to invest in short-term rentals in Paris, here’s what you need to know (and it might make you think twice):
90 Nights = Hard Limit
As mentioned, Paris brought the maximum down to 90 nights/year for primary residences as of Jan 1, 2025 . The city council unanimously passed this measure right after the national law allowed it. Airbnb has already integrated this 90-day cap for Paris listings of entire homes. If you somehow bypass the cap and get caught renting your primary home more than 90 days, expect up to €15,000 in fines in Paris court
All Rentals Must Be Registered
Paris has had a registration system since late 2017. Every listing needs the registration number (not just a simple declaration) in the ad (or Airbnb will de-list it). Under the new framework, Paris also now requires proof that a rented property is indeed a primary residence (if you claim it is) . This means when you register a primary home, you may need to provide a tax document or attestation with your name and that address . It’s aimed at stopping investors from falsely labeling secondary apartments as “primary.” If you lie, that’s the €20k false declaration fine we mentioned. Paris is serious: they have inspectors and even leverage tax records to check if the owner’s tax domicile matches the rental address.
Secondary Homes – Essentially Banned (Unless You Compensate)
Paris’s default position is that no second apartment should be used for Airbnb – unless the owner goes through a complex change-of-use process with compensation. To get the authorization, you typically must buy and convert another equivalent property from commercial to residential use in Paris. In central districts, the rule has even been two-for-one (convert 2 m² for every 1 m² of Airbnb) in some cases. Practically, this is so expensive and cumbersome that very few individual owners do it. Some professionally-managed apart-hotels or companies have navigated this by buying old offices and converting them to get “Airbnb credits.” But for a typical investor, it’s a steep hill. There is a provision for temporary authorizations up to 5 years (even for companies) introduced by the new law, which Paris could use to grant short-term permits without compensation. However, they can also set quotas on those. Thus far, Paris hasn’t shown interest in loosening the reins – if anything, they tighten them.
Enforcement and Fines in Paris
The city’s housing bureau has a dedicated brigade to police short-term rentals. Thousands of inspections have been done. They often target hosts with multiple listings or those suspected of running a dedicated Airbnb business. After the “loi Anti-Airbnb” (Le Meur), Paris can prove illegal use more easily (e.g. using data from Airbnb showing >90 days of booking or reviewing utility usage to show no one lives there). The fines have been, as noted, increased to a theoretical €100,000 per illegal rental. In 2022, Paris won a case against one operator for €1.3 million covering multiple properties – so they’re not shy about high penalties. The city’s message: rent your property long-term to a resident, not to tourists, unless you follow the rules to the letter. They claim tens of thousands of apartments have been lost to Airbnb, exacerbating the housing shortage.
Co-ownership (Copropriété) Rules
Even if the city allows you, your building might not. Many Paris apartment buildings have clauses in the règlement de copropriété forbidding short-term lets. Traditionally, a clause labeled “habitation exclusivement bourgeoise” means no commercial activity – which courts have interpreted to ban Airbnbs (since it’s a repetitive business activity). A more lenient clause “habitation bourgeoise simple” allows quiet professional use, which may tolerate occasional B&B activity. The new law gives co-owners an easier path to amend bylaws to restrict or allow meublés de tourisme, requiring a two-thirds majority instead of unanimity in some cases. It also obliges any host to inform their condo syndicate of their activity. So, if you’re in a condominium, you’ll need to be upfront and possibly face a vote. Many Parisian co-owners resent constant tourist turnover in their buildings, so anticipate pushback. Always check the copropriété rules before buying a flat intended for Airbnb – a hostile co-op can ruin your plan quickly. To be clear, this issue is not limited to Paris, those are nation-wide rules.
Reality Check – Is it Worth It in Paris?
Given all these barriers, you might wonder if short-term rental investment in Paris is feasible. It can be, but usually only in two scenarios: (1) renting your primary residence occasionally – essentially house-hacking when you travel. This is legal (90 days/year) and many Parisians do it to earn side income. Or (2) operating a legit, authorized tourist rental – often done by buying a property that is already commercial or office space and converting it entirely to short-term rental use (thus not counted as housing). You would also need to comply with enhanced health and security rules and collect the taxe de séjour for Paris. That’s however not the biggest issue if you can overcome the hurdle of the change-of-use process. For example, some investors buy ground-floor commercial units (which aren’t “housing” to begin with) and turn them into licensed holiday flats. Those can be rented year-round legally because they’re not considered housing stock anymore. But they usually command lower resale value and you might need specific city permits for change of destination (zoning).
(Fun fact: Before 2025, the 120-night French rule for primary homes was actually the most generous in Europe – far higher than London’s 90-night limit or Amsterdam’s 30 nights (now 0 in central areas). Paris cutting to 90 nights brings it in line with London and shows a trend of major cities converging on stricter controls). Well, maybe not that fun of a fact…
Conclusion
Investing in Airbnb-style rentals in France can still be profitable, but it’s no longer easy money with carefree hosting. You need to be informed, compliant, and adaptable. Here are some closing tips to succeed in this environment:
- Do Your Homework: before buying a property, research the local short-term rental rules (they vary by city, and can change fast). Check if the city requires an authorization for second homes, and if there are any local decrees about 90-day limits or other restrictions. For Paris, consider consulting a specialized attorney or notary to ensure any plan is viable – it’s a minefield for the uninformed.
- Stay on the Right Side of the Law: register your rental with the city and display that number. Stick to the night limits if it’s your own home. If it’s a secondary, either go through the proper authorization channels or reconsider the strategy (maybe opt for medium-term furnished rentals of 1-10 months under the “bail mobilité” which don’t trigger these tourist rules – a possible Plan B for secondary homes that can’t do Airbnb). The fines for non-compliance are not worth the risk.
- Mind the DPE: the energy performance requirement is gradually kicking in. If your property is poorly rated, plan to improve it. Not only for legal reasons but also because an uncomfortable, drafty apartment gets bad reviews! France is pushing the greener future, and landlords are expected to upgrade or bow out.
- Optimize Your Taxes: decide between micro-BIC and réel, and keep good records. Many investors find the régime réel with an accountant yields better results net of taxes, despite the required admin. Don’t forget to budget for the 17.2% social charges on your profits. And ensure you’ve got that SIRET and are filing the required forms (the annual liasse fiscale for régime réel, etc.). If this sounds daunting, a professional tax advisor in France is worth every euro.
Finally, remember that behind all these rules is a real social issue – housing. As an investor, being a respectful and rule-abiding host not only saves you fines, but also tends to make you a better neighbor and citizen. Happy guests, happy neighbors, and happy authorities will result in a sustainable rental business.
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