Courts in Paris have handed out a fine of almost €600,000 to the owners of an SCI property that was being illegally rented on Airbnb, part of an ongoing crackdown of an estimated 25,000 illegal tourist rentals in the French capital.
Paris city authorities have celebrated a “huge victory” as a court imposed a fine of almost €600,000 on a property owner for illegal tourist rentals – the highest such fine imposed so far.
The property owner had acquired the building in the city’s 9th arrondissement in 2022 and converted it into 11 self-contained units which were rented out on Airbnb to tourists, without applying for a change of use permit or registering the units as tourist rentals.
The property was owned through an SCI (société civile immobilière), a non-trading real estate company made up of at least two people that allows people to own property through shares of a company, rather than under their own name.
The Paris tribunal last week convicted the SCI owners of illegal conversion of a building into a tourist rental, and fined them a total of €585,000.
The building had previously been social housing intended for vulnerable people.
“This is the largest fine ever imposed on a landlord. It is a huge victory, especially as this is a professional landlord with eleven properties, which is typical of companies that rent out properties en masse,” said Jacques Baudrier, the Paris deputy mayor for housing.
Paris city authorities estimate that there are around 25,000 illegal tourist rentals in the city, a problem that is exacerbating the city’s severe housing shortage, along with second homes, which make up almost 10 percent of Paris housing stock, and vacant properties.
In February, two apartment owners were fined €80,000 and €150,000 respectively for renting out apartments to tourists without permission. In this case too, the properties were owned through an SCI.
The city’s new mayor Emmanuel Grégoire has proclaimed the housing shortage a priority for his administration, vowing to crack down on illegal tourist rentals and brings more second homes and vacant properties back onto the rental market – although he has not yet announced details of any new rules.
READ ALSO: Is Paris really going to ban second homes?✎
What are the rules on tourist rentals?
The French government last year tightened up rules on renting out property to tourists via platforms such as Airbnb, but local authorities are also allowed to impose their own rules, with Paris among the most strict.
In the French capital, properties listed as second homes cannot be rented out at all, while main residences can be rented out for a maximum of 90 days per year.
Anyone renting out a property on Airbnb – even if only for a couple of weeks of the year – must register it with Paris city authorities. For full-time rentals, a change of use application may be required.
READ ALSO: Airbnb crackdown: The French towns that have short-term property rental restrictions✎
Anyone renting out a French property to tourists must declare this income to French tax authorities, and platforms such as Airbnb are required to pass on information on landlords to the French taxman.
This year, the tax code has changed to reduce the thresholds for income from property rentals – full details HERE.
