New Year’s brought more than just Champagne and celebration—it also ushered in a new era for Paris short-term rental regulations with the implementation of the Le Meur Law (or Loi Le Meur). As of January 1st, short-term rental property owners in Paris face updated legal requirements. At 56Paris, we keep our blog readers informed about these changes and their potential impact on property owners and real estate investors.
This move comes amid rising concerns about housing shortages, over-tourism, and tourism’s impact on local communities.
While short-term online rentals have revolutionized the travel and housing industries all around the world, our city is pushing back in an attempt to halt their growing popularity.
As such, in November 2024, French deputies adopted the Le Meur Law that has been two years in the making. (Readers will remember our update in September.)
Its goal is tackling housing shortages in France (and cities like Paris) by imposing or tightening regulations specifically on furnished short-term rentals. The law introduces a stricter set of regulations on rental owners as well as platforms like Airbnb. Thus, it has also been referred to as the “anti-Airbnb” law, though it's broader than just Airbnb.
The changes include reduced tax deductions, revenue ceilings, shorter rental limits, fire safety requirements, and a ban on rentals that fail to meet energy criteria.
We take a look at the changes and how they impact owners.
A. Taxes and Revenue Ceilings
The new law reduces tax relief on income earned from furnished tourist apartments.
For "unclassified" furnished accommodations (typically an owner's primary residence), the relief has been reduced from 50% to 30%, with a revenue limit of €15,000 per year (down from €77,700). This marks a significant change.
For "classified" furnished apartments (professionally managed rentals), the tax relief has dropped from 71% to 50%, and the revenue ceiling is now €77,700 annually, compared to the previous limit of €188,700.
B. Shorter rental limits
Primary residences may now only be rented out for 90 days per year (as opposed to 120).
This limit is designed to ensure that residential properties (thus long-term accommodations) are not increasingly turned into tourist rentals.
C. Energy efficiency diagnosis
The Le Meur Law law also stipulates that accommodations offered for rental on Airbnb carry out an energy performance diagnosis (DPE) and obtain a rating. These ratings go from A (most energy-efficient) to G (least efficient).
The roll-out of this requirement will be progressive. Starting in 2025, properties with a G rating cannot be rented out, with bans coming for 2028 (no F-ratings) and 2034 (no E-ratings). Owners will need to invest in renovations to remain in the market.
OTHER THINGS TO BE AWARE OF
D. Localized municipal restrictions
Municipalities have the freedom to designate specific areas where only primary residences can be short-term rentals or impose limits on the number of vacation rentals allowed in a neighborhood. It remains to be seen whether Paris will designate such areas.
Cities like Paris can also enforce compensation requirements. Hosts would be required to convert an equivalent amount of space into long-term accommodation to counterbalance short-term rentals.
E. National registration system
A centralized online registry will track all short-term rental listings, making it easier for authorities to enforce compliance and monitor activity.
F. Fire safety regulations
Properties hosting upwards of 15 guests must adhere to stricter fire safety standards, akin to those applied to hotels rather than private rentals.
Non-compliance with these measures can now result in fines of up to €100,000, a significant increase from the previous limit of €50,000.
The broader context
France is the world’s second-largest market for Airbnb. With over 1 million listings, it is second only to the United States in the number of properties on the platform.
However, while the law does affect platforms like Airbnb, calling it an “anti-Airbnb law” oversimplifies its purpose and scope. The law impacts all forms of short-term rentals, from independent property owners to professional agencies. Focusing only on Airbnb ignores the broader implications for the industry.
Our pledge to you
That’s why we at 56Paris are here to keep you informed about legislative changes and to assist you in navigating new laws to maximize your property investments. We stay informed about evolving legislation, like the Le Meur Law, to guide you effectively.
Our experience and expertise can help us provide answers to your questions. And if needed, we are able to connect you with trusted professionals (lawyers, tax experts, property managers) from our network. They can help ensure that our clients are fully compliant with all tax obligations, given the labyrinthine (and initially daunting) French bureaucratic system. This includes potential tax liabilities for secondary residencies and tourist tax (taxe de séjour), which is a binding obligation for Airbnb hosts in France.
Our aim is to ensure that our clients enjoy their investment properties while making informed decisions. We stay ahead of regulatory changes, offering the advantage of working with English speaking professionals well-versed in French real estate. While we aren't legal advisors, we connect our clients with trusted experts and provide practical solutions tailored to property owners in a relatable way, always committed to delivering this level of service.
Here to help you rent or buy in Paris
At 56Paris, we don’t manage Airbnb rentals. Instead, we offer a portfolio of carefully-selected properties for rent.
To speak to a local property expert in our team about renting or buying, please do contact us.
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