A tax boon for owners
This measure offers an increased tax reduction for owners opting for long-term rental.
Currently, the reduction for this type of rental is 30%, but with the new law, it could reach 50% up to 15,000 euros of property income. This change aims to encourage the marketing of long-term rental housing.
Reaction and Implications of Tax Change
MP Iñaki Echaniz, who initiated this initiative, expressed his enthusiasm on social networks, saying that this measure would significantly reduce the tax burden on owners. “Less taxes for owners who rent long-term! “, he tweeted.
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This reform is seen as a way to alleviate the shortage of housing available for rental, by encouraging owners to opt for long-term leases rather than seasonal or short-term rentals, which are often more lucrative.
Comparison with furnished rentals and online platforms
The bill proposed by Iñaki Echaniz and MP Annaïg le Meur also aims to reduce the tax allowance for properties rented via platforms such as Airbnb. Currently, these properties benefit from a reduction of up to 71%, a considerable advantage over long-term rentals.
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The objective is to rebalance tax incentives between furnished and unfurnished rentals, to promote a stable, long-term housing supply in the face of growing demand.
What impact on the real estate market?
Experts and analysts agree that the change in the tax allowance could lead to a significant increase in the number of properties available for long-term rental. This could, in turn, stabilize or even lower rents in some areas where real estate speculation has pushed prices higher.
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This tax reform is seen as a step forward in making the real estate market more affordable and less prone to extreme fluctuations caused by short-term tourism.
- Increase in tax relief from 30% to 50%.
- Expected positive impact on housing availability.
- Potential reduction in rents through increased supply.
- Balancing benefits between furnished and unfurnished rentals.
“This measure creates a more balanced playing field between the various forms of rental, promoting the stability of the housing market,” says a real estate expert.
The adoption of this reform by the National Assembly is a first step towards broader application, although the legislative path still remains uncertain due to current political dynamics. However, for landlords, this news could represent a golden opportunity to review their rental strategies and maximize their tax benefits.
