Short-Term Rentals in 2025: A New Regulatory and Tax Landscape

Regulatory Context: A Major Shift in the Rental Market

2025 marks a significant turning point for short-term rentals with the enforcement of the Law of November 19, 2024. This new regulation aims to tighten control over tourist rentals while ensuring a balance between property owners, tenants, and local authorities.

Key Regulatory Changes

1. Mandatory Declaration for Primary Residences

Starting May 20, 2026, homeowners renting out their primary residence must:

✅ Register their activity through a national online platform
✅ Provide a tax notice proving the rental address
✅ Adhere to the 120-day annual rental limit

This measure enhances transparency and prevents market abuses, especially in high-demand areas like Paris and Strasbourg.

2. Tax Adjustments: Lower Allowances

For Classified Rentals & B&Bs

🔹 Tax allowance reduced from 71% to 50%
🔹 Applies up to €77,700 in annual rental income

For Non-Classified Rentals

🔹 Tax allowance reduced from 50% to 30%
🔹 Limited to €15,000 in annual rental income

Energy Performance: A Crucial Criterion

Mandatory Energy Performance Diagnosis (DPE)

New obligations for tourist rentals in high-demand areas:

📆 Nov 21, 2024 – Dec 31, 2033 → DPE rating A to E required
📆 From Jan 1, 2034 → DPE rating A to D mandatory

Increased Powers for Local Authorities

Local governments now have broader authority to regulate short-term rentals:

🔹 Rental Duration Limits → Cities can reduce the rental cap from 120 to 90 days per year
🔹 Quota System → Authorities can restrict the number of rental permits in certain areas
🔹 Stronger Penalties → Fines up to €10,000 for unregistered rentals and €20,000 for false declarations

Easier Amendments to Condo Rules

Condo associations can now ban short-term rentals with a ⅔ majority vote (previously required unanimity).

Key Recommendations for Property Owners

📢 Get Professional Guidance
Whether renting your primary or secondary home or investing in short-term rentals, expert advice is essential to navigate the new regulations.

🏅 Get Your Property Classified

✅ Higher tax allowance: 50% instead of 30%
✅ Lower tourist tax: Reduces the final price for renters

📊 Choose the Right Management Solution

🚨 Micro-BIC system? Be careful!
Concierge fees are not deductible, meaning you pay taxes on their services.

✅ CityCosy offers a smarter alternative!
📌 For simplified taxation: CityCosy Essential – Flat fee of €85/month
📌 For full rental management: CityCosy Premium – Maximize rental income

📉 Social Security Contributions: Avoid Excess Charges

✔ Stay under €23,000 in annual rental income
🔹 Only 17.2% in social charges
🔹 No mandatory social security affiliation

✔ If exceeding €23,000, work with a licensed agency
🔹 Mandatory management contract
🔹 Professional license (T or G) required
🔹 Social charges limited to 17.2%

💡 Invest in Energy Efficiency

Starting January 1, 2025, new short-term rentals in high-demand zones requiring a change of use permit must have a valid DPE rating (A to E until 2033, then A to D).

🚨 Non-compliance = Fines up to €5,000

🏡 CityCosy: Your All-in-One Solution

✅ Professional Expertise

✔ Tax Optimization → Maximize income while staying compliant
✔ Regulatory Management → We handle all legal procedures
✔ Energy Performance Assistance → Support with DPE requirements

🔹 Tailored Rental Solutions

🏠 CityCosy Essential → Autonomous management with professional support (€85/month)
🏠 CityCosy Premium & RP → Full-service rental management for maximum returns

🔹 Competitive Advantages

🏆 Licensed Real Estate Agency
✔ T & G professional licenses
✔ URSSAF-compliant tax coverage
✔ Deep local market expertise

💰 Significant Savings
✔ Lower social charges
✔ Higher rental profitability
✔ Transparent & competitive fees

🛡️ Legal Security
✔ Full compliance
✔ Rental permits handled
✔ Protection from legal risks

🚀 Turn Regulation Challenges into Profitable Opportunities

Don’t let complex laws stop your project! With CityCosy, transform challenges into rental success.

Are you a property owner looking to rent out your home in Strasbourg? Contact CityCosy Strasbourg for a hassle-free, full-service management of your short-term rental.