Airbnb accommodation hosts can breathe easy: the Council of State rejects elected officials’ appeal against tax benefits

The Council of State decided this week to reject the appeal of elected officials who wanted to end the tax advantages of Airbnb accommodation hosts. The owners can still breathe a little.

On March 6, several deputies and senators, including Max Brisson (LR), Inaki Echani (Socialites and related) and Ian Brossat (PCF), filed an appeal before the Council of State aimed at ending the advantage tax for Airbnb owners. The highest administrative court was clearly not convinced. It rejected the appeal at the start of the week, thus confirming the reintroduction of tax advantages for rentals of furnished accommodation such as Airbnb, Booking and Abritel.

Elected officials tried to reverse the trend on tax benefits, but the Council of State does not see it that way

The question of the tax loophole surrounding Airbnb rentals has gone a bit in all directions in recent months. The contested measure concerns, it should be remembered, the advantageous taxation enjoyed by rentals such as Airbnb, Abritel or Booking, with reductions of up to 71% of their rental income.

The decision of the Council of State, although it does not directly address the root of the problem, offers a glimmer of hope for affected taxpayers, who can see the future, at least in the short term, with a little more serenity. It highlights for them the possibility of benefiting from advantageous conditions for the previous period, even in the event of future cancellation of this measure. What are we talking about ?

At the end of last year, the government “by mistake” adopted the reduction of the tax loophole, which should, in theory, have imposed a much more rigorous tax regime in 2024, with a reduction falling from 71% to 30%. in areas where access to housing is more difficult. Except that the government has not yet effectively applied this reduction voted for, let us remember, by mistake.

The Airbnb tax loophole still preserved

The decision of the Council of State necessarily has significant repercussions for unclassified furnished rental companies, who supplement their income through short-term rentals. The income thresholds remain unchanged for the time being. They stand at 188,700 euros for short-term furnished rentals (under the micro-BIC regime) and a 71% reduction, and 77,700 euros for long-term rentals, with a 50% deduction.

The deputies have not yet officially reacted to the decision of the Council of State, but various tourism and hotel professionals had railed against the maintenance of this tax loophole.

The Union of Hotel Trades and Industrialists (UMIH) deplored, in February, that article 45 of the 2024 finance law was not applied. If it were, the micro-BIC regime would see its ceiling fall to 15,000 euros per year, with a reduction of 30%. For now, it’s the status quo.