The arrival of Airbnb on the market has completely changed our habits. For a long time, Airbnb has established itself as the solution for going on a weekend or vacation for a rather reasonable price, a much more interesting alternative than the hotel. Sharing accommodation with other people could even appeal to more than one traveler looking for adventure. For a long time, we believed that Airbnb could well spell the death of hotels (or almost). In reality, the ubexization of the platform demonstrates that at present, renting short-term accommodation on Airbnb is no longer as interesting. A recent study showed that hotels are even cheaper than Airbnb rentals in 24 of the 30 most popular tourist destinations in the world, although France remains an exception.
Today, the government wants to tighten taxes on furnished rentals, including seasonal rentals such as Airbnb. This is bad news for owners, but also for consumers. Indeed, if this is implemented, prices on Airbnb could well skyrocket.
Fewer tax benefits…
The government wants to encourage owners to favor classic empty rentals. In this sense, the finance bill currently being studied plans to remove a tax loophole in order to make the rental of furnished accommodation by individuals less tax efficient. This concerns medium and long-term rentals with a minimum lease of one year but also, and above all, seasonal rentals such as Airbnb. According to Nice-Morningthis measure should bring in 200 million euros next year.
To put it simply, an individual who rents his furnished property can today deduct depreciation from his rental income, without it being taken into account in the calculation of the capital gain on the property when it is sold. But that will soon be ancient history. By removing this tax loophole, individuals could be subject to higher taxes.
If this measure is actually adopted, it could stem the severe housing crisis we are experiencing. Owners could then favor classic empty rental. But those who persist with seasonal rental of furnished accommodation, particularly on Airbnb, will certainly have to compensate. And this involves an increase in prices.
But as Marc Wyler, Nice real estate agent, points out with Nice-Morningit is difficult to know at the moment what will ultimately be decided. Indeed, it should be remembered that tourist rentals combined brought in 43 billion euros last year. This is a colossal figure. So you have to show a little patience but Airbnb’s reign is gradually crumbling…
- Airbnb-type seasonal rentals are in the government’s crosshairs
- Removing a tax loophole would make furnished rentals less advantageous for owners
- This could stem the housing crisis and drive up prices on Airbnb
