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Money Matters and Legal / Your Money

Fines for Illegal Short-term Rentals in Paris Jump Ten-fold in 2017

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This year has seen authorities dish out more than ten times as many fines to rogue landlords as they did last year, as the war on illegal short-term rentals in Paris continues. 

If there was any doubt as to the seriousness of the Paris Council regarding recent measures to tighten up rules on short-term rentals in the capital, the figures on fines given out in 2017 have surely snuffed it out. The first six months of the year have seen thirteen times the amount recuperated by authorities as was seen in the same period last year.

A total of €560,000 was collected from landlords flouting the 120-day rule on short-term letting in Paris from January to July, versus only €45,000 last year. The figure means 2017 has already beaten 2014’s record of €547,000 collected from landlords.

The next two years saw €267,000 and €200,00 collected, respectively. So at the current pace, authorities could collect more in fines than the previous three years combined. This has led many to assume that illegal activity has skyrocketed this year, but the head of housing in the Paris City Hall refutes this assertion.

“The massive jump in condemnations and fines in the first half of 2017 is not evidence that illegal activity has increased,” Ian Brossat told French news outlets, “but rather that regulation is being better enforced and the culprits are being caught. One of the reasons for the jump in fines is that judges are now stricter. It is now assumed that everyone is aware of the law, whereas before people were often given the benefit of the doubt.”

Airbnb, the site which has a 43% market share in French short-term rentals, has also been making headlines for its taxes. Some are outraged it has paid only €100,000 in taxes in France, as it is headquartered in Ireland from where it bills clients. Corporation tax there is 12.5%, the lowest of the EU’s major economies. However, it has collected significantly more in the form of the taxe de sejour (holiday tax) which it adds on to bookings, especially since it was extended to 50 cities outside of Paris in May.

image © Haven in Paris

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