The French government is taking steps to address the housing market shortages. One of their approaches is tightening regulations on short-term rentals.
To provide clarity, I thought we’d dive into the changes today and ensure everyone understands what’s happening.
In essence, there are a few changes that is supposed to come with this new law that will be activated from 2025.
Reduced Tax Breaks:
Tax breaks for non-classified short-term holiday rentals have been cut from 50% to 30%, with a cap of €15,000. Similarly, the tax break for classified short-term holiday rentals has been reduced from 71% to 50%, with a new cap of €77,700.
Energy Efficiency: The law introduces strict energy efficiency requirements. Starting in 2025, vacation rentals must meet certain energy performance standards. Because of that short term rentals must now get an energy classification before renting out. Previously only longer term rentals had to get the energy classification done. Properties with poor ratings (below class D) will not be allowed to rent out. By 2034, all rentals must meet energy performance standards between classes A and D
Local Regulations: Local governments gain more control over short-term rentals. They can set stricter limits on the number of rental days for primary residences, reducing the current limit from 120 days to 90 days for primary residences. Before you could rent your primary residence up to 120 days per year without obtaining a permission. Now that can be reduced to 90 days instead. Nice is confirmed to be affected by this.
They can also establish "tourist rental quotas" to limit the number of rental properties in certain areas.
Mayors now have more authority to regulate short-term rentals in their cities. According to Iñaki Echaniz, co-author of the bill, mayors across France are being equipped with a "toolbox" to manage short-term rental activity. This includes setting local quotas for furnished tourist accommodations.
This means some towns will experience stricter enforcement than others. Staying informed about local regulations in your area is crucial.
For example Christian Estrosi, the mayor of Nice, has strongly supported the new regulations aimed at limiting short-term rentals like Airbnb in the city. Under these new rules, the municipality will establish "tourist rental quotas" to restrict the number of such properties in specific areas, particularly in heavily saturated districts such as Old Nice ("Vieux-Nice"). This move is part of Estrosi's broader effort to tackle "overtourism" and ensure that the housing market remains accessible to local residents, rather than being overtaken by short-term rental properties.
Estrosi has emphasized that his goal is to reduce the number of Airbnb listings in the city by at least 50%. The focus is on freeing up housing for permanent residents, especially in areas where rental demand is high. He stated that he does not want to see a tourism-driven transformation of the city that negatively affects the quality of life for Niçois (Nice residents).
Mandatory Registration and Fines: Starting in 2026, all short-term rentals must be registered with local authorities and display a registration number. Today that only applies to certain muncipalities. Failure to comply with this rule could result in fines up to €20,000. Additionally, there will be penalties for landlords who falsely declare their property status
Unsurprisingly, representatives from the hotel sector have welcomed these regulations.
Co-Ownership Rules: In multi-unit buildings, new regulations allow condominium associations to modify their rules to ban short-term rentals, and changes can be made with a two-thirds majority vote. Before it had to be a unanimous decision.
We will of course follow this very closely and see what kind of measures the diffrent towns plans on implementing. In short my view is that it will get tougher to rent out on short term in the area. However, if the municipalities makes it harder to rent out that might also mean greater profitability for the ones left standing. I am exited to see how we can find ways to navigate this new laws and what kind of future awaits.
Thank you for reading and we will keep you updated as this plays out.
Have a great week!
Emil owner at Monsieur Folke