The government mistakenly reduced the tax allowance on Airbnb rentals, putting an end to a niche that was denounced by the opposition, who for their part did not expect such a gift before Christmas.
While they thought they were getting through it, Airbnb, Booking, Abritel and other hosts had the bitter surprise, this week, to discover that the government has finally validated the tax reduction on rentals of furnished tourist accommodation, which will fall from 71 to 30%. The executive simply admitted having made a mistake. This is a dumpling that will make people happy and disappointed.
For owners of Airbnb accommodation, a potential blow
If the elimination of the tax loophole for Airbnb hosts had been voted on in the Senate, it was expected that the government would reject the amendment in question. But a curious and gross negligence offered the detractors of the 71% reduction an unexpected victory.
The owners, for their part, thought they would be calm two months ago. But the initial bill provided for a reduction in the reduction to 50% in tense areas. Ultimately, this will drop to 30% in areas where access to housing is particularly difficult.
It’s a bit of a double whammy for those who rent their accommodation for tourist purposes. The provision therefore aligns the tax regime for rentals of furnished tourist accommodation with that of unfurnished rentals. All within the limit of 15,000 euros of annual revenue, compared to 77,700 euros in the initial bill.
An application of the measure which is not yet certain
Is this drastic drop, not even considered in the worst scenarios, inevitable for Airbnb hosts? Yes and no. At worst, the government will be able to modify the provision as part of a future legislative vector, inserted in the 2025 budget. And at best, the reduction in the reduction is not intended to apply in any case. interval.
But be careful, if the reduction can be discussed again during a future amending finance bill, the government’s error will have the merit of relaunching the debate around the tax loophole in the National Assembly. Hosts, seen as destroyers of the real estate market in certain large cities, will still have to wait before they can sleep soundly.
The hemicycle must examine a proposed transpartisan law at the beginning of 2024. To be continued.
Sources: Public SenateClubic
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