Under what conditions can letting online exempt you from the residence tax?

Tax — 5 April 2025

The Conseil d’État’s ruling on residence tax conditions for seasonal lets, and what it means for owners.

The recent ruling by the Conseil d’État on the conditions applying to residence tax for holiday lets has raised a great many questions among owners. While some believed they were exempt from this tax thanks to their « furnished tourist accommodation » status, their letting practices can in fact create unexpected tax obligations.

Freedom to choose your guests: a risky practice

Many holiday let owners are used to deciding, once a booking request comes in, whether or not they want to accept a guest. According to the Conseil d’État, however, that freedom of choice is not without tax consequences.

Simply reserving the right to accept or refuse a booking can be read as an intention to retain the use or enjoyment of the property. That means the property is no longer regarded as « furnished tourist accommodation » exempt from residence tax, but as a second home subject to it.

At N&C Conciergerie, after several months of training through an accredited body and with a specialist lawyer, we have found the answer to this — one that has even worked for our sublets.

Case law that changes the picture

In its judgment of 23 December last, the Conseil d’État examined the case of a Breton couple who owned three cottages officially rated as furnished tourist accommodation. Although they used online booking platforms, these owners reserved the right to refuse certain requests.

For the tax authorities, this practice demonstrates potential enjoyment of the properties by the owners themselves, which justifies charging residence tax.

At N&C Conciergerie, every ground for refusal is clearly stated on the platforms.

The tax consequences for owners

This decision is far from inconsequential for thousands of owners across France. Many believed they were exempt from residence tax thanks to their furnished tourist accommodation status, but they could now be liable for it. That could mean substantial back-tax assessments, particularly if the tax authorities apply this case law retroactively.

To avoid that risk, owners will need to review their letting practices. Accepting every booking request automatically, without discrimination and without conditions, could become a necessity in order to keep the residence tax exemption.

Booking platforms are affected too

This ruling could also have an impact on online booking platforms and marketing networks. Many platforms attract owners by offering them the ability to filter or refuse certain requests. With this new case law, those practices may well be called into question.

Some platforms will no doubt have to adapt their models to avoid exposing their users to tax risk.

What can you do to avoid residence tax?

For holiday let owners, taking preventive steps is essential:

• Adopt a policy of automatically accepting bookings: this reduces the risk of being regarded as reserving the enjoyment of the property.
• Use transparent booking tools: sites with booking engines that guarantee an immediate response may be viewed more favourably by the tax authorities.
• Document any refusals: if a refusal is unavoidable, keep evidence showing that the property was already booked or unavailable for legitimate reasons.
• Consult a tax specialist or an expert: professional advice can help you adapt your practices to this new case law.

Need support?

N&C Conciergerie supports you with your seasonal let. Free quote, no obligation.