Seasonal rentals in France 2025: everything you need to know!

Seasonal rentals in France, particularly through platforms such as Airbnb, Booking, or Abritel, attract many foreign investors. However, due to growing tensions in the rental market in certain areas, the French government has tightened regulations governing this activity.

Adopted on November 19, 2024, the Le Meur Law introduces new restrictive measures to better regulate short-term furnished rentals. Its main objective is to limit the widespread conversion of residential properties into short-term tourist accommodations, which reduces the availability of long-term housing for residents.

This comprehensive guide outlines the new rules coming into effect in 2025, the required administrative procedures, tax implications, and key considerations regarding urban planning, insurance, and social security contributions.

Seasonal rentals : Obtaining the necessary authorizations

Urban planning: declaration of furnished accommodation and change of use

Before renting out a property as a short-term rental, you must:

• Register your furnished tourist accommodation with the local town hall. This is a mandatory step, even for occasional rentals. The registration can now be completed via the following online platform, which will automatically transmit the information to the relevant town hall: click here.

Deadline: Owners who have not yet registered must comply by January 1, 2026.

• Obtain a change-of-use authorization if required. This applies to certain French cities, especially major metropolitan areas and high-demand zones such as Paris, Lyon, Bordeaux, and Nice. In these cities, the change of use is generally subject to compensation requirements, meaning the owner must convert commercial premises into residential housing to offset the loss of long-term rentals.

🔹 In some cases, the compensation must take place in the same district as the short-term rental.
🔹 Some cities require compensation for double the surface area of the rented property.

What’s new in 2025: The Le Meur law strengthens the powers of local mayors, allowing them to:

• Set a maximum quota of furnished tourist rentals per neighborhood.
• Enforce compensation, requiring property owners to convert commercial space into residential housing.
• Limit rental duration for primary residences (e.g., a maximum of 90 days per year in some cities).
• Impose higher penalties for violations:

-€10,000 fine for failure to register (€20,000 for false registration numbers).

-€10,000 to €15,000 fine for exceeding the annual rental limit for a primary residence.

-Up to €100,000 fine for failing to comply with change-of-use requirements.

📌 Tip: Before investing in a short-term rental property, check local regulations, particularly regarding change of use. Compensation requirements can be expensive and complex, potentially affecting the profitability of your investment!

Declaration to the co-ownership (condominium rules)

If your property is located in a condominium, you need to check the condominium bylaws. Some bylaws expressly prohibit tourist rentals, and the Le Meur law now makes it easier for the general assembly to adopt restrictions.

As of November 21, 2024, new co-ownerships must explicitly state whether or not tourist rentals are permitted. In existing co-ownerships, a 2/3 majority is now sufficient to prohibit this type of rental, whereas previously unanimity was required.

📌 Tip: Before buying a property for seasonal rental, check the condominium bylaws and consult the property manager to anticipate any restrictions.

Declaration of activity on the Guichet Unique website

All renters of furnished tourist accommodation must register their business with the Guichet Unique des Entreprises to obtain a SIRET number (business ID). This registration enables you to choose the appropriate tax regime and, if necessary, comply with social obligations (see section 5).

Steps to take :

1. Go to the official Guichet Unique website and create your space.
2. Declare the business as a “non-professional furnished rental property” (LMNP) or “professional furnished rental property” (LMP), depending on the income generated.
3. Obtain a SIRET number to declare income to tax and social security authorities.

Mandatory Energy Performance Diagnostic (DPE)

Since the introduction of the Le Meur law, an Energy Performance Diagnostic (DPE) is mandatory for all new seasonal rentals.

Bonds in 2025 :

• Only properties rated from A to E can be rented as short-term rentals in 2025.
• From 2034 onwards, only A to D rated properties will be allowed.
• Some cities may require an energy audit before granting rental authorization

📌 Tip: If you’re renovating a property, consider improving insulation to boost the energy rating and ensure long-term rental viability.

Seasonal rentals : Compulsory insurance

There are many risks involved in seasonal rental: water damage, fire, theft, noise pollution… It is therefore essential to take out specific civil liability insurance covering damage caused by tenants.

In addition, we recommend that you ask tenants to provide a certificate of holiday insurance, which is usually included in their own home insurance: presentation of this certificate ensures that you are covered in the event of damage to the property caused by the tenants during their stay.

Seasonal rentals : Taxation of seasonal rentals in 2025

In France, income from furnished rental activities is taxed as Industrial and Commercial Profits (BIC), and may be subject to one of two tax regimes:

The micro-BIC scheme: a simplified option

The micro-BIC scheme is a simplified tax system, particularly suited to homeowners generating modest rental income. It works as follows:

• The owner declares only the total amount of rent received (gross income), without having to itemize expenses.
• The tax authorities automatically apply a flat-rate allowance to cover operating expenses (maintenance, repairs, loan interest, depreciation, etc.).
• The taxable amount therefore corresponds to gross income less this allowance.

As of January 1, 2025, the allowances and thresholds for the micro-BIC scheme are modified:

• 50% allowance for furnished accommodation ([1] ) (previously 71%), with an annual revenue ceiling of €77,700.
• 30% allowance for unclassified furnished accommodation, with an annual revenue ceiling of €15,000.

If your income exceeds these ceilings, you must switch to the actual tax system.

The actual regime: more demanding accounting management, but potentially more advantageous

The “régime réel” is compulsory if your income exceeds the micro-BIC thresholds, but it can also be chosen voluntarily if you wish to optimize your tax situation. Unlike the micro regime, it allows you to deduct actual expenses rather than a flat-rate allowance.

Under this system, the owner can deduct from his rental income :

• Loan interest on the purchase of the property.
• Maintenance and renovation work.
• Condominium charges.
• Rental management and insurance costs.
• Local taxes (property tax, CFE, etc.).
• And above all, the depreciation of the property and furnishings, which considerably reduces taxable income.

However, the actual system imposes stricter accounting obligations:

• Commercial accounting with balance sheet and income statement.
• Obligation to keep all invoices and proof of expenditure.
• More complex tax returns, often requiring the assistance of a chartered accountant.

Summary :

What tax rates apply to non-residents?

Rental income from property located in France is taxable in France, even if the owner lives abroad. This means that people who are not resident in France for tax purposes must file an income tax return in France to declare their rental income.

Once taxable income has been determined according to one of the above tax regimes (micro-BIC or régime réel), non-residents are subject to a minimum tax rate of 20%.

Social security taxes (CSG-CRDS), the rate of which varies according to the country of residence, are added to these taxes:

• 7.5% for people affiliated to a social security scheme in another EU country, Switzerland or the UK.
• 17.2% for residents of non-EU countries, Switzerland and the UK.

Social security contributions

As soon as your gross rental income exceeds €23,000 per year, you are subject to social security contributions for the self-employed (SSI). See our full article on the subject: https://www.cabinet-roche.com/fr/location-meublee-et-cotisations-sociales/

Below €23,000, you are not liable for social security contributions, but you are still subject to CSG CRDS (17.2% or 7.5% for owners who pay contributions in another EU member country + Switzerland + the UK).

2025 Finance Law: significant changes for LMNP resale

Attention! A new measure from the 2025 Finance Law is set to impact the resale of properties rented under the Non-Professional Furnished Rental (LMNP) regime. Capital gains on real estate will now be calculated by reintegrating the accounting depreciation previously deducted under the real taxation regime.

Exceptions: Depreciation related to construction, reconstruction, expansion, and improvement expenses will not be reintegrated (Article 150 VB, II, 4° of the French Tax Code).

Additionally, certain types of residences will be exempt from this adjustment:
• University residences
• Senior service residences
• Social and medico-social establishments
• Nursing homes

In practical terms, this reform completely changes the game! The LMNP loses a key advantage upon resale, and investors must now factor this into their wealth management strategies. It is therefore essential to carefully assess the impact of this measure before making any investment decisions.

The Le Meur Law of 2024 and the 2025 Finance Law impose stricter regulations on short-term rentals in France. Foreign investors must anticipate these new obligations to avoid penalties and maximize the profitability of their investments.

Before investing, it is crucial to check local regulations, select the appropriate tax regime, and optimize the property to comply with the new energy standards.

[1] A classified furnished accommodation is one that has obtained an official classification of 1 to 5 stars, issued by an approved organization, attesting to its level of comfort and quality according to criteria defined by the State. https://www.classement.atout-france.fr/le-classement-des-meubles-de-tourisme