OPINION: France’s “Anti Airbnb Law” & How This Might Affect Gite Ownership

First published: 19th November 2024 by Carol Paylor

Opinion

By Carol Paylor

2024 saw France awarded as the Number 1 Most Visited Tourist Destination in the World, but for me, as a gite owner in the French tourist industry here in the Charente, it has been a behind-the-scenes nightmare! The uncertainty regarding changes to the fiscal regime began in April 2023 and has made this year one of the most turbulent I’ve experienced as a micro-BIC gite owner.

The prominent politician Madame Le Meur has been instrumental in pushing through her proposal for a new law, nicknamed the “anti-Airbnb” law, in a crusade against short-term rentals, which she claims are “spiralling out of control.” The aim is to bring an end to perceived “tax breaks” for short-term tourist rentals and to free up the housing stock in favour of much-needed longer-term lets. Finally, in November 2024, a bill was unanimously passed by the Sénat and voted in by a large majority in the Assemblée Nationale.

What is the 2024 “anti-Airbnb” law?

After several proposals and much argy-bargy throughout most of 2024, most of us can breathe a sigh of relief as, essentially, there is little change. As a Micro-Bic, if your gites are classified or you run a chambre d’hotes, you can earn up to 188,700 € and still receive an ‘abattement’ of 71 % for your 2024 income.

Anyone who is Micro-Bic understands perfectly well that this favourable abattement is due to the fact you cannot offset ANY costs in this fiscal regime. For example, if you fit a new kitchen in your gite, buy new bedding, etc, this cannot be offset against your earnings.

However, if your gites are not classified by an officially recognised star-rating, then you can only earn up to 15,000 € in 2024 and receive a 30% abatement on that income. If you are situated in a rural zone and classified, this increases to 51%, as long as you don’t go over the 15,000 € in 2024.

Will this change in 2025?

In short, yes. Classified gite owners will see a drop in the tax relief to 50%, and the income ceiling will be lowered to 77,000 €.

Also, there will be Energy Performance Requirements (DPE), which state that from January 1^st 2025, properties rated G will be banned from rental, followed by properties rated F in 2028 and E in 2034. Existing properties currently rated F and G will have a 10-year grace period to reach D standard.

So what does this mean for current and prospective gite owners?

In reality, for those who own gites in order to make a bit of ‘extra’ money to supplement other income, then there’s no major panic. As long as your income from the gites is under 15,000 € and your property isn’t a leaky sieve energy-wise!

However, if you have gone over that income for 2024 and your gites are not classified AND you are situated in a densely populated area, then that’s a little bit trickier.

You could explore the feasibility of renting out long-term for 2025, but do take advice on this as the laws are weighted in favour of the tenants, and it can be a very complicated, costly and protracted process should you fall into a disagreement with your renter. Your property will also need to meet energy-efficiency requirements.

You could try exploring other fiscal regimes for gite owners and I would strongly recommend speaking to a practising, registered and fully qualified accountant in France regarding your specific financial situation. Other ‘simplified’ regimes do exist where you can offset business costs, but you may need the help of an accountant.

Either way, the French government is squeezing its world-renowned tourist industry across the board. The argument for much-needed long-term housing in highly populated and desirable areas is clear. However, a ‘one size fits all’ measure is always going to be grossly unfair to some.

In short, take advice and do your sums before making any major decisions. Running a gite in France just became a whole lot more complicated!