France limits tourist rental and will impose fines of up to 50,000 euros on platforms

The French government has presented on Wednesday a bill for ‘the evolution of accommodation and digital development’ that will impose financial penalties on platforms such as Airbnb and increase fines for private owners.

For the first time, sanctions of up to 50,000 euros will be imposed on the online platforms for tourist rentals such as Airbnb and HomeAway. In addition, Article 51 of the same regulation collects increases fines to private owners who do not communicate to the local authorities the number of nights rented, up to 10,000 euros, compared to 5,000 previously.

The objective of the law is “to limit the inflationary effect of rental prices” in tourist cities, as well as to avoid reducing the rents available for housing that use, “especially when there is a professionalization of the activity”.

From December 1, 2017, all tourist accommodation rentals must be registered in the municipalities. The City of Paris has already threatened the holiday rental platforms with legal proceedings if they do not remove their more than 40,000 ads considered illegal.