Legal column
Several new rules have been applied to property rentals in France, explains Matthew Cameron
R
ental of a second home in France has long been an attractive option for owners
wishing to draw some income from the house when they are not using it themselves. It has also, however, long been the source of misunderstanding. In this article, we will review some of the main points of property and tax law that may aff ect those who rent out their French home. In addition, there have been
various changes in the law aff ecting rental properties over the past few years, with one new law having been adopted by the French parliament as recently as November 2024, with implications that are not to be ignored. Like many other countries,
France has experienced a shortage of housing stock. The legislators promoting the new law identifi ed that workers and students among others may experience diffi culty in fi nding suitable accommodation. Their suggestion is that furnished lettings have contributed to such problems. This may not be surprising in practice and is a phenomenon that has been seen in other countries as well and indeed there have even been more draconian restrictions elsewhere.
LOCAL REGISTRATION For quite a while now, many property owners in certain areas – notably larger cities – have had to declare that they have been renting their homes for holiday lets. The new law will extend this obligation across the whole of France. The aim will be that this
will be managed at a local level, with power conferred on the maire (mayor). Property owners who wish to rent out their homes will need to
register with the mairie (town hall). Failure to register when required could lead to the imposition of substantial fi nes. This should be in force by 20 May 2026 at the latest. It is not only second-home
owners who will be caught by the new legislation. The short-term holiday let market has seen an increase in people renting out their main residence while they may be away, notably via the various well-known online platforms. This can be lucrative, particularly in areas where annual high-profi le social, sporting and other events may be held. One of the new measures
will allow authorities to impose a reduction in the number of days an owner can rent their main residence from 120 to 90 days without being obliged to apply for change of use. The requirement to register
rental activity, whether of a holiday home or your main residence, means that the mairie will be able to control property rental in their towns.
TAX ON LETTINGS While it can be understood that a major target of this legislation is the control of furnished lettings, and rental property in general, it is clear that there are important consequences for taxation as well. The requirement for registering rentals should allow for the activity to be better tracked. This should lead to better tax collection. It is important to remember
that whenever a French property is rented, it is taxable in France. That is the case even if the owner is a taxpayer in another country. If, for example, you declare your income tax to HMRC in the UK, you must fi rst declare the
88 FRENCH PROPERTY NEWS: March/April 2025
French property income to the French tax offi ce. There is a double tax treaty between the UK and France, so any tax paid in France is credited against the UK liability. Not all countries have such agreements with France, so if you are tax resident elsewhere, you will have to check if you are able to claim that relief. If the property is only
rented out occasionally, it is likely that you may not actually make a profi t over the year. While no tax may be due in such circumstances, it is still important to fi le a tax declaration. If the property is owned by
several people, they will all need to fi le separate tax returns for their due proportion of the revenue, although a married
couple (or a couple in a civil partnership) can fi le one. There is also a local residency
tax that will be payable. This is collected from the holidaymakers, and calculated by reference to the number of people staying, and the length of the stay.
ENERGY EFFICIENCY Much has been written over the past couple of years about the increasing importance of energy effi ciency reports. The intention of these is to entice owners to ensure that their properties become more energy effi cient. In accordance with
legislation from 2021, long-term residential lettings (as opposed to holiday lets) were subjected to a regime of obligatory energy
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