Short-term rentals: what rules to follow?

Different regulations depending on the nature of the residence: primary or secondary

Any owner can rent their main residence for short stays if the annual duration does not exceed 120 days per year. There is no particular obligation, except in cities where it is particularly required. The law of October 7, 2016 allows municipalities to set up a prior registration procedure in order to regulate this activity.

In the case of renting a second home, the regulations are more complex.

In towns with more than 200.000 inhabitants:

• Obtain authorization for change of use with compensation
• Change the premises to hotel accommodation
• Declare the property

In other cities, it is simply necessary to declare your property via CERFA form n°14004*02.

Know your status based on the annual rents generated

• LMNP status (Non-Professional Furnished Rental Company): if the annual rents generated do not exceed 23.000 euros
• LMP (Professional Furnished Rental) status: more than 23.000 euros in rental income per year

Know the type of short-term rental lease

The short-term rental contract is a furnished lease which obeys the rules of the Civil Code and the Tourism Code. It is therefore necessary to take out a lease with special conditions, a freely fixed price and a duration which cannot exceed 90 consecutive days for the same tenant and 120 days per calendar year.

• The mobility lease for a period of between 1 and 10 months, provided that the tenant can present proof of their situation
• The seasonal rental contract for a period of less than 120 days

Don't forget to consult the co-ownership trustees

Since April 11, 2024, co-ownership trustees must provide municipal authorities with the necessary information to prove that accommodation temporarily rented to tourists or visitors meets the new change of use standards.

The rules are clear: if an apartment is used for short-term rental, it must be officially declared as commercial premises. The trustees, who until now could hide behind professional secrecy, can no longer hide this information. They have to lay their cards on the table to make sure everything is in order.

Know what taxation applies to these short-term rentals

The taxation of rents for a limited period is specific. This is the BIC (Industrial and Commercial Profits).

You must then choose the tax regime that corresponds to your activity:

• If you rent less than €70.000 per year, you are on a fixed price basis: you must deduct 50% of your rent
• If you rent for more than €70.000 per year, you're dealing with reality: you have to deduct your real charges and on top of that pay social security contributions (17,2%) and don't forget the tourist tax.