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France’s New Tax Policy Encourages Fairer and More Transparent Short-Term Rentals

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14 March 2025

France’s New Tax Policy Encourages Fairer and More Transparent Short-Term Rentals

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An illustrative photo of Paris, France

France's new tax policy for short-term rentals, effective January 2025, aims to promote transparency and fairness in the market by adjusting the tax abatement for non-classified rentals from 50% to 30%, with a 15,000 EUR cap. This measure encourages property owners to register under official classification systems, ensuring better regulation, fair competition, and alignment with sustainable tourism goals. By integrating short-term rentals into a structured framework, the policy supports housing availability, responsible tourism growth, and a balanced accommodation sector, benefiting both local communities and visitors.

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Editorial team

Topics
Geographical descriptors

France

Organisation Type

Academic/Research and VET Institutions

Business Support Organization

Company with 250 or more employees

Consumer / tourist organisation

Cultural and Heritage Organisations

Destination Management & Marketing Organisations

EU institutions

Financial Institutions and Investors

Industry Associations and Chambers of Commerce

International Organisations

Local authorities

Media/Travel Journalist Organisations

National authorities

Networks and Federations / Confederations

NGOs / Non-profits

Regional authorities

SMEs (a company with less than 250 employees)

Social Economy Entity

Trade Unions

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    • Adventure tourism

    • Coastal, maritime and inland water tourism

    • Cultural tourism

    • Ecotourism

    • Education tourism

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    • Health and medical tourism

    • MICE tourism

    • Mountain tourism

    • Religious tourism

    • Rural tourism

    • Sports tourism

    • Urban/city tourism

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  • Transition Pathway Strategic Areas

    • Governance of tourism destinations

    • Short-term rentals

  • Business activities

    • Activities of amusement parks and theme parks

    • Activities of associations and other organisations supporting tourism

    • Air passenger transport

    • Camping grounds, recreational vehicle parks and trailer parks

    • Events catering and other food services

    • Festivals, cultural and entertainment activities

    • Gardens and nature reserves activities

    • Holiday Housing / Apartments and other short stay accommodation

    • Hotel and similar accommodation

    • Mobile beverage services

    • Mobile food services

    • Museums

    • Operation of historical sites

    • Other

    • Other accommodation

    • Other amusement and recreation activities

    • Other food and beverage services

    • Other holiday reservation services

    • Other tourism transportation activities

    • Rail Passenger transport

    • Recreational and sport activities

    • Restaurants, cafes and bars (Food and Beverage serving activities)

    • Road passenger transport

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    • Water (sea, coastal and inland) passenger transport

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Starting in January 2025, France is implementing a refined tax policy designed to foster a more structured and transparent short-term rental market. Under the new regulations, the tax abatement for non-classified short-term holiday rentals will be adjusted from 50% to 30%, with a cap of 15,000 EUR. This policy is part of a broader effort to create a balanced rental environment that benefits property owners, travelers, and local communities alike.

Encouraging Official Classification for Greater Transparency

A key objective of the new measure is to encourage property owners to register their rentals under official classification systems, which provide clear standards for accommodation quality and tax obligations. Classified rentals benefit from a more favorable tax regime, reinforcing the idea that transparency and adherence to regulations bring long-term advantages.

This approach is particularly important in France, where tourism plays a vital role in the economy, and short-term rentals have become an integral part of the accommodation sector. By promoting official classification, the policy ensures that the quality and reliability of short-term rental offerings remain high while supporting a level playing field for all accommodation providers.

A Balanced Approach to Housing and Tourism

The rise of short-term rentals has brought many benefits, including diverse lodging options for visitors and income opportunities for homeowners. However, managing this growth effectively is essential to maintaining a healthy housing market, particularly in popular urban and tourist destinations. The new policy is designed to prevent market imbalances while still allowing property owners to thrive within a structured and fair framework.

By encouraging more rentals to be classified, France is integrating short-term accommodations into its long-term tourism strategy, ensuring that tourism continues to contribute positively to local communities. The initiative aligns with broader European efforts to balance tourism growth with housing availability and fair competition within the hospitality sector.

A Positive Step Toward Sustainable Destination Governance

France’s new tax adjustments demonstrate how well-structured governance can support responsible tourism growth. Rather than restricting short-term rentals, the policy creates an incentive-based framework where classification benefits both hosts and guests.

For property owners, this is an opportunity to align with evolving industry standards, gain tax advantages, and enhance their credibility within the market. For travelers, it means a more reliable and transparent selection of accommodations. And for local communities, it helps ensure housing availability and fair competition, ultimately contributing to a well-balanced tourism economy.

As the industry continues to evolve, France’s approach highlights the importance of adapting policies to support both economic growth and sustainable tourism governance. By encouraging compliance and fostering responsible rental practices, this policy represents a step forward in ensuring that all stakeholders benefit from a thriving and well-regulated tourism ecosystem.
 

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