Letting your home

Letting your home

Letting out a French property, whether occasionally or on a more regular basis, can provide a useful source of income. Many American owners have homes in attractive, high-demand areas where short-term holiday rentals remain popular, particularly during peak tourist seasons.

However, short-term furnished rentals are no longer the straightforward side business they once were. A combination of tighter regulation, reduced tax advantages, rising local taxes, and higher acquisition costs means that owners must now plan carefully and ensure they are fully compliant with local and national rules.

Letting your home out from time to time

Short-term holiday rentals (location saisonnière or location de vacances), often marketed through platforms such as Airbnb, Abritel or HomeAway, have historically offered higher yields than long-term lets. A modest house in a sought-after area can still command weekly rents of €350 to more than €1,000.

That said, holiday letting is physically and logistically demanding. Guests may change every few days, requiring frequent cleaning, laundry, check-ins, and check-outs. Unless you use a local agent, you must also be available to welcome guests, deal with issues during their stay, and manage departures.

For expatriates, early retirees, or second-home owners who use their property themselves for part of the year, this type of letting was once an attractive way to offset costs. 

This is still possible, but it has become notably more onerous.

A changing regulatory and tax environment

The underlying issue has been the rapid expansion of short-term rentals in France, from around 300,000 in 2016 to more than one million by 2024. The government has cited housing shortages and upward pressure on prices as justification for action.

In October 2024, a package of measures was approved giving municipalities greater power to regulate short-term lets while sharply reducing their tax appeal.

One of the most significant changes affects taxation under the micro-BIC regime. Previously, landlords letting non-classified furnished tourist accommodation benefited from a 50% tax allowance on turnover of up to €77,700. Under the new rules, this allowance has been cut to 30%, and applies only to turnover of up to €15,000. 

The result is a substantial increase in taxable income and a marked reduction in net profitability. However, classified accommodation retains the higher allowance (see below – ‘Classifying your property as tourist accommodation’).

Short-term rentals must also now meet energy-efficiency standards aligned with those for long-term leases. Local authorities have been granted enhanced enforcement powers, including limiting the number of nights a property may be rented each year and imposing significant fines for non-compliance.

Basic overview of the rules

In many towns, if you intend to rent out a property other than your main residence (defined as the home you occupy for at least eight months of the year), you must declare this intention to the mairie using a simple form.

In Paris and other large towns (generally those with populations of 200,000 or more, or 50,000 in areas under housing pressure), the rules are stricter. Anyone offering a property for short-term rental – including their main residence – must register with the mairie and obtain a registration number, which must appear in all online listings. This is intended to enforce the 120-day annual limit for renting out a main residence.

If you regularly let a second home on a short-term basis, you may need formal permission from the mairie for a temporary change of use to commercial status as a meublé de tourisme. Failure to comply can lead to fines of up to €100,000. 

In Paris, the requirements are particularly complex and often make this option impractical. Such commercial use can also have implications for capital gains tax when the property is sold.

All rental income from a French property must be declared for French income tax purposes, even if you live outside France. Platforms such as Airbnb are required to send hosts an annual income summary to the tax authorities. Social charges also apply, following rule changes introduced in 2016.

All properties offered for short-term letting must be fitted with a functioning smoke alarm, which is the owner’s responsibility.

Classifying your property as tourist accommodation

Given the increasingly restrictive environment, some landlords may wish to consider classifying their property as tourist accommodation under the Code du Tourisme, rather than treating it as a standard furnished rental.

This classification (meublé de tourisme) can offer advantages, including a 50% tax allowance on turnover of up to €77,700, exemption from certain municipal rental-duration limits, and improved market credibility through an official star rating.

To obtain classification, the property must meet specific criteria covering size, equipment, and services. The process involves an inspection and the award of a rating from one to five stars, renewed every five years. Registration obligations are made with the mairie, and are separate from the star-rating classification.

Tourist offices and mairies work closely together on this and can guide owners through the steps. There are fees for inspections and, in some cases, annual listing charges, but owners benefit from visibility through tourist offices and access to standard contracts and practical advice.

An increasingly challenging market

The short-term rental market in France is becoming more difficult for small landlords. Reduced tax allowances, higher local taxes, stricter regulation, and rising acquisition costs have eroded many of the advantages that once made holiday letting attractive.

For some owners, long-term letting or alternative investment strategies may now offer a more stable return. Others may still find short-term rentals viable, but only with careful planning, full compliance with local rules, and a realistic assessment of the workload involved.

Connexion tips

Preparation

Speak to friends or family who already let property in France – their experience can save time and costly mistakes. 

If your French is limited, consider taking local classes and invest in a good bilingual dictionary. Ensure you have sufficient financial reserves to cover periods without rental income.

Be size-savvy

Large farmhouses with outbuildings can be expensive to heat and maintain, while being under-used for much of the year. Smaller, easier-to-manage properties are often better suited to occasional letting.

Location and facilities

Visit your chosen area in all seasons. A picturesque village may be lively in summer but quiet and poorly serviced in winter. Proximity to towns, attractions, and year-round amenities can make a significant difference.

Check transport links

Consider how easy and affordable it is to reach the property from outside France throughout the year, and whether shops, banks, and services are accessible without a car. Rural isolation can quickly become a practical problem.