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AMENDMENT LOWERING TAX REDUCTIONS FOR SHORT-TERM LETS WAS NOT REMOVED FROM 2024 BUDGET LAW WHICH WAS FORCED THROUGH PARLIAMENT A drastic change to tax advantages for holiday letting has
apparently been passed ‘accidentally’ after a Senate amendment was left in the 2024 budget law unintentionally. Several media have referred to this as a change to an ‘Airbnb’ advantage, in
reference to the fact a lot of holiday letting is done via this well-known company’s site. However government sources have been quoted to French news agency AFP saying the change will be
rectified legally again as soon as possible - which may not be until the 2025 budget law - and will not be applied in the meantime. The amendment refers to reducing a _micro-Bic_ expenses
allowance for furnished short-term holiday lets to just 30% (50% in areas deemed not to have housing pressures) and with an income ceiling to benefit from this regime of only €15,000, which
would align the taxation with the _micro-foncier_ regime for unfurnished rental. This goes far beyond original government proposals which only sought to reduce certain benefits for holiday
lets classified under the star-rating system where these are located in areas deemed to suffer from housing pressures. It was proposed they should have only the usual 50% _micro-Bic
_expenses allowance, as applied to other furnished letting, as opposed to a generous 71%. Usually, letting eligible for the 71% allowance can benefit from this regime up to an income of
€188,700 and letting on the 50% rate up to €77,700. However, when the bill was forced through the French parliament using the controversial article 49.3 – which allows certain bills to be
passed without a vote – the government appears to have forgotten to remove a Senate amendment, which was noted in the text pushed through as being in conformity. The amendment will
technically come into force after the 2024 budget law (_loi de finances 2024_) is published in_ Le Journal Officiel_. READ MORE: WHAT IS FRANCE’S ARTICLE 49.3 AND WHY IS IT BACK IN THE NEWS
AGAIN? It is unlikely however that the taxation changes will be enforced due to the brevity of the rule change and the government’s desire to change it, but nonetheless it is still being
seen as a small victory by those seeking to regulate the laws surrounding short-term letting. PARLIAMENT COMMITTEE ON THE MATTER IN JANUARY Regardless of the accidental nature of these
changes, taxation reform for short-term lets is something many politicians have been calling attention to. Although the Senate is majority-led by right-wing parties, the stricter taxation
rules were adopted in their reading of the bill. One of the senators who put it forward, Ian Brossat (himself a member of the French Communist Party) said: “Nothing justifies paying more tax
by renting your home to a worker all year round than by renting it to a tourist on Airbnb.” Many left-wing parties and figures, and even some members of the government’s own centrist party
– have been angling for reforms on the matter. Housing Minister Patrice Vergriete says he supports “a reform of the rental tax system for private lessors,” but that the government must be
“cautious” about doing this and that a parliamentary enquiry is set to make a report about it. The issue is likely to also come back next year with a bill about housing issues expected in
January. RELATED ARTICLES MPS PROPOSE FURTHER CRACKDOWN ON SHORT-TERM RENTALS ON FRANCE HOW PARIS PLANS TO CRACKDOWN ON SECOND HOMES AND EMPTY PROPERTIES