The system of taxation of seasonal lettings (meublées de tourisme) in France is fast becoming a nightmare for many landlords, faced with rules that are complex and in a state of continuous change.
In recent years, new controls have been introduced in many areas to limit the number of such lettings, and tax breaks have been reduced.
The latest announcement concerns the liability of landlords of such lettings to the local rates, confirming a decision of the Supreme Administrative Court (Conseil d’État) in 2023. In their decision the court stated that: “where a property is made available to the public in a flexible manner, for periods decided by the owner, in the tax sense, the owner shall retain the use.”
Although the taxe d’habitation was abolished for principal residences in 2023 it remains in place for second homes (Taxe d’Habitation sur les Résidences Secondaires – THRS). In areas of housing stress a surtax of up to 60% is payable.
In addition, business rates (Cotisation Foncière des Entreprises - CFE) may also be payable as the letting of a meublé de tourisme is considered a commercial activity.
However, the double taxation rule does not operate in all circumstances, and in some cases it is possible to be exempt from both taxes.
Cotisation Foncière des Entreprises
As far as the CFE is concerned, the rules are reasonably clear: save for certain specific exemptions, anyone who carries out a business activity, even on a complementary basis, is liable. Seasonal furnished rentals fall within this framework.
However, there are several exemptions. First, the tax not payable where the turnover in the year is less than €5,000. Once reached, most local councils then only charge the minimum contribution level, which in 2025 is €243.
In addition, if the letting is the “habitation personelle” of the owner (primary or second home), subject to no contrary decision of the local council, the CFE is not payable. Properties located in a rural development area (ZFRR) may also be exempt, subject to a local decision to that effect. Nearly 18,000 communes are classified as a ZFRR. Neither would incidental lettings create a liability to CFE.
Taxe d’Habitation sur les Résidences Secondaires
As the title implies, the tax is only payable on second homes.
The tax remains liable even though an owner may let out the property as a seasonal letting, provided that on 1st January the owner has the right to occupy the property, even if it is offered for rent. The government state that: “if during the year, premises are rented out for short periods and for periods which the owner is free to accept or refuse, the latter is regarded, on 1 January of the tax year, as intending to retain the enjoyment or use of the property.” Such a rule would capture all properties using on-line platforms such as Airbnb.
Some landlords have considered that if they entrust a local agent to manage the seasonal lettings they escape payment of the tax, but this is not the case. Only where the contract with the agent includes a formal non-occupation agreement would the exemption apply.
In short, the property cannot be the second home of the owner, but a property available for lettings throughout the year, and which is not available for occupation by the owner. If vacancy periods suggest personal use, the tax is payable.
However, in rural development areas (ZFRR), subject to no contrary decision of the council, meublés de tourisme are granted an exemption from the tax.
In addition, the tax is not due where the property is let to a tenant as their principal residence.
Conclusion
In summary then, as a general rule,if an owner retains the right to enjoy the property on 1 January, the taxe d’habitation remains due, in addition to the CFE, if the rental activity generates more than €5000 in turnover and the property is not their “habitation personnelle” (primary or secondary).
We considered the implications for gite owners of the potential for double taxation in our article Gite Owners and the Taxe d'Habitation.
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