A hotel lobby group in France has succeeded in getting the country’s parliament to tighten tax laws on rental income in an effort to slow Airbnb’s growth in the country.
The law will require Airbnb to send host tax data to the French government, rather relying on individual hosts who use the service to provide it.
This comes on the heels of legislation passed earlier this year that effectively makes it impossible for Paris residents to rent out their properties for more than 120 days per year. If residents want to do so, they must register the property with the city government as commercial property. In Paris, that means the individual registering the property would also have to buy an equal amount of commercial property in the neighborhood and convert it to residential property. Individuals breaking the rule could be fined more than $26,000.
Post by Olivier François on Dec 17, 2016 8:25:29 GMT
This rule exists since at least 30 years in France, nothing new. You could rent your main residence without any problem less than 120 days per year. A house rented more than 120 days is no more considered as main residence and need to be registered. You have a high discount over taxes for main residence but not for secondary ones. And this rule is only for entire listings, doesn't affect you if you rent a room.
Post by Olivier François on Dec 17, 2016 8:33:35 GMT
The fact Airbnb (and other platforms) will be obliged to send to tax department the income generated is a good thing (personal opinion) and have been 'suggested' by Airbnb french team to gain more legitimity on the French market. Most hosts are illegal in Paris and this reality is a problem for Airbnb growing strategy. About taxes it's not fair: illegal hosts made rates drop 20% without paying any taxes when I, as a legal host, I pay 25% taxes.
In France, there is always the theorie and the praxis. And usually they differ surprisingly. If the praxis is not satisfying, they tend to make a new law, often not very different from the old one, but still don't go to great lengths to inforce it.
I'm glad about the tourism tax collection, as this seems complicated to pay otherwise but the amounts are very low.
The new tax information may not be easy to connect with the real beneficiary of the income. You are not obliged to verify the account. I declare taxes via the business, but the airbnb account is in my - not verified - name. (Set up six years ago). On the other hand, income arrives on a bank account and if you get a control, every income is visible. That so many people cheat is only possible, because they do not have enough manpower for controls. That will not be much easier with data arriving that has to be tracked to the taxpayers it belongs to.
I'm living in a residency, several buildings with a common entrance from the street. The first house has 7 floors, 5 small one room apartments per floor. When we arrived in 2004, they were all rented to students, young people on their first job, some old persons and 2 were owner occupied. Now, of the rented ones, there are 2 still occupied by the same neighbors. All others are only short term flats now. Nearly the same for another smaller building, one atelier unoccupied after a death, one is looking for a longterm tenant and one longterm neighbor. All others are short term. Most not on airbnb but via agencies. How do they do that? It's clearly illegal, it deprives Paris of more flats for young and low income residents. And it reduces social interaction.
Last Edit: Dec 17, 2016 19:34:15 GMT by helgaparis: Typo