On April 1st, the French government provided clarification regarding the recently implemented the so-called Anti-Airbnb law. Thanks to this explanation, it has become clearer when rental properties fall under the scope of this VAT legislation and what the implications may be for you as a property owner/landlord.

The aim of this law is to level the playing field between private holiday rentals and hotels. Villas that offer hotel-like services are treated as hotel accommodations for tax purposes and are therefore subject to VAT.

What does this mean for you?

The general rule has always been that, in the case of furnished rentals, VAT is not applicable to the rent.

In certain cases, the rental of your holiday villa in France is, since january 1st 2025, subject to 10% French VAT (TVA). It is the owner, who is responsible for declaring VAT to the French tax authorities, if applicable.

1. No VAT for rentals;

If you rent under the following conditions, no VAT is applicable:

1. Minimum of 6 nights per rental period,
2. The property is clean upon arrival,
3. All beds are made up upon arrival. (linen included)
4. Guests are personally welcomed by a property manager.

2. VAT is applicable;

If you offer both of the two following services in addition to the above, your rental is considered VAT-liable:

1. Intermediate cleaning
2. Intermediate linen change

For those who do not want to be a VAT entrepreneur;

If, as an owner, you wish to avoid falling under the VAT regime, it is important that you strictly follow the rules regarding hotel-like services. This also applies to your property manager.

If you are currently offering, either optionally or mandatorily, an intermediate cleaning including linen change and you wish to change this, please let us know — we will then update your villa information and the travel documents for guests accordingly.

For owners who operate as VAT entrepreneurs;

If you offer 3 of the following 4 hotel-like services, you automatically fall under the para-hôtellerie regime (10% VAT on gross rental income):

1. Personal reception by propertry manager on-site
2. Mid-stay cleaning
3. Mid-stay linen change
4. Breakfast service

Note: Since January 1st of this year, VillaSud no longer falls under the Tour Operator Margin Scheme (TOMS). As a result, we can now include VAT on the Rental Statement and reverse-charge it to you, provided you are not established in the Netherlands. This may be advantageous for you as an owner operating within the VAT system.

Are you a VAT-registered entrepreneur? If so, please email us your VAT number. You will then receive your Rental Statement with VAT.

VAT entrepreneur or not?

The decission whether or not you, as a property owner wish to fall under the VAT regime is your own responsibility. VillaSud cannot offer fiscal advice in this matter. 

Please note,If you wish to avoid falling under the VAT regime, it is essential that you strictly comply with the rules regarding the para-hotelier services. You carry out your rental activities at your own risk and for your own account. VillaSud cannot assume any responsibility in this matter. Should the French tax authorities determine that you are subject to VAT, VillaSud, as intermediary, have no influence over that decision.

Not sure what the most favorable tax setup is for your situation? Please contact a tax advisor familiar with French tax law. 

VAT entrepreneur and % applicable

Registered location of your company	VAT liable and VAT number provided?	Application by VillaSud
Netherlands	✅ Yes	➤ 21% Dutch VAT on commission fees
Outside the Netherlands	✅ Yes	➤ VAT is reverse-charged to the client (0%)
All locations (incl. NL)	❌ No / VAT number unknown or not provided	➤ VillaSud applies 20% French VAT (TVA)

Disclaimer

We would like to point out that the information above should not be seen as tax advice. You should have your personal situation investigated by an expert in order to choose the most financially favorable tax return method. For further information, please contact your tax consultant.