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Airbnb rentals: MEPs agree in committee to tackle this "tax loophole"

2023-11-29T13:38:54.709Z

Highlights: A majority of MPs gave their approval in committee to a cross-party bill that tackles Airbnbs in particular. The measure to reduce the tax allowance has divided the presidential camp. Annaïg Le Meur (Finistère) described in her constituency "entire villages (which) are emptied under the weight of furnished tourist accommodation and are transformed into holiday villages" Inaki Echaniz (Pyrénées-Atlantiques) wants to "relay the cry of alarm from local elected officials"


Annaïg Le Meur, elected Renaissance representative of Finistère, points the finger at "entire villages (which) are emptying under the weight of furnished tourist accommodation


They denounce a "tax loophole" for furnished tourist accommodation. A majority of MPs gave their approval in committee to a cross-party bill that tackles Airbnbs in particular. Initiated by Annaïg Le Meur (Renaissance) and Inaki Echaniz (Socialist), the text was adopted by the Economic Affairs Committee on Tuesday night and is expected in the hemicycle the week of 4 December.

The LR and National Rally MPs opposed it, criticising measures that were unfavourable to "small landowners". And the measure to reduce the tax allowance has divided the presidential camp. Annaïg Le Meur (Finistère) described in her constituency "entire villages (which) are emptied under the weight of furnished tourist accommodation and are transformed into holiday villages".

A "cry of alarm from local elected officials"

Inaki Echaniz (Pyrénées-Atlantiques) wants to "relay the cry of alarm from local elected officials", faced with the lack of housing and the devitalisation of city centres. Their text intends to "rebalance the taxation of furnished tourist rentals", so that it does not come at the expense of a year-round rental offer.

The most debated measure concerns the reduction of the tax allowance rate on the income of furnished tourist accommodation to 30%, except in "very sparsely populated rural areas" where a rate of 41% could be applied. The tax advantage had already been the subject of a tug-of-war during the examination of the 2024 draft budget, with the executive's promise to reduce the allowance in tense areas from 71% to 50%.

Read alsoAirbnb: what if Paris, like New York, banned rentals of less than thirty days?

In committee, the government expressed its reservations about the move to 30%. "There is no urgency on taxation," said Housing Minister Patrice Vergriete. The presidential camp could try to change this amendment during the parliamentary shuttle. Macronist Jean-René Cazeneuve, general rapporteur of the budget, said he was "distraught that we do not have an impact study" and fears that the revision of the allowance will create "many losers".

Socialist, Green and Liot (independent) amendments open up the possibility for municipalities to reduce the maximum period during which a main residence can be rented out as a furnished tourist accommodation from 120 days to 90 days per year. The text also applies energy performance diagnosis obligations to furnished tourist premises. The Socialist group welcomed the adoption in committee, stressing that this "cross-party initiative follows a bill tabled by Socialist MEPs last February".

Source: leparis

All business articles on 2023-11-29

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