France to Slash Tax Benefits for Airbnb Rentals in New Legislation

A bipartisan agreement aims to reduce fiscal advantages for short-term rentals, aligning them with traditional leases to address housing shortages.

The French Parliament is set to vote on new legislation reducing tax benefits for Airbnb-style rentals by mid-November 2024.
The proposed law will lower the tax deduction for tourist rentals from 71% to 50%, matching the rate for standard furnished rentals.
The agreement between the Senate and the National Assembly also introduces energy performance diagnostics for short-term rental properties.
Local governments will gain the authority to limit short-term rental durations to 90 days per year for primary residences.
The legislation is part of broader efforts to make long-term rentals more appealing and address the shortage of available housing.