MoneyPolitics

French Senate debating a reduction on tax breaks for short-term rentals

Whilst the law has not yet been passed, the legislation would slash tax breaks for tourist properties to 30%. Currently, owners receive between 50-71%.

Accountants are currently waiting for an “instruction fiscal” from the tax office so that they can offer advice. The proposed change is part of the 2024 Finance Law and concerns short-term furnished rentals, including properties let out on Airbnb. In essence, the maximum tax threshold turnover would be capped at €15,000*, a substantial reduction from the previous limits of €77,700 and €188,700. The tax allowance would be set at 30%.

This would mean that the MICRO BIC option would no longer be available for those generating over €15,000 pa, with owners needing to transition to a régime réel.

As soon as the legislation is passed/rejected we will inform clients of the implications in more detail (sign up for our newsletter here).

*€30,000 for officially classified gites.