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Where to invest in France

France is known for several world-renowned tourist attractions. Since the pandemic restrictions have been lifted around the globe, more tourists have traveled here and there. And while it’s too cliche to say that it’s known for being the city of love – it also offers the best cities for Airbnb investment in Europe!

In fact, Airbnb revealed some of the top destinations in 2022 and discovered that most international guests are from France. And because of fully booked Airbnb cities like Paris, investors are taking advantage of available undervalued properties.

But the real question is, where to invest in France? What are the best places that can generate excellent income?

This article will guide you through the most recommended Airbnb locations for investment, rules and regulations, and anticipate annual revenue in France. Continue reading to learn more!

Airbnb Rules France: Laws for Airbnb Hosts

Airbnb rules in France vary per city and it can be a challenge if you don’t speak their language. But the good news is that you can reach out to municipal services in France and be guided by their instructions.

Here are some of the general Airbnb rules in France:

Primary Residence – allowed to rent a room without any duration limit for 365 days per year.
Secondary Residence – this includes holiday houses and pied-à-terres (small living units – apartments), where you can live for less than 4 months in a year. This is also allowed as long as your rental activity is declared to the city.
Registration is necessary if you rent an entire primary or secondary residence or a commercial space. However, if you only rent a single room in your primary residence, rent for long-term stays, or on bail mobilité (mobility lease), then registration is not necessary.

On March 2022, Airbnb news shared a mandatory registration for short-term rental hosts in 10 French cities.

This includes the following cities: Albi, Troyes, Ahetze, Arcangues, Acain, Bassussary, Bocau, Saint-Pierre-d’lrube et à Urrugne, and Montpellier. To register as an Airbnb host in these cities, all you need to do is request registration online on their local municipality’s website.

Is Buying Property in France a Good Investment?

As long as you target the right neighborhood and market, investment property in France can certainly be a good investment! Aside from the fact that you’ll live in one of the dreamiest countries in Europe, you can also earn a good source of income.

So what is it like when buying property in France for foreigners? To date, there are no restrictions for foreign investors to purchase a property in France. Here are some of the requirements that you will need to prepare for:

Local French bank account
A valid government ID
Notaire’s fees + deposit
Stamp duty (5.8% for properties over 5+ old and 0.7% + VAT for new homes)

Starting an Airbnb business in France can be easier with the help of a local real estate agent’s help. For beginners, you can also consider doing rental arbitrage in France. As long as the landlord and lease contract allows you to do so, then it’s a good idea to do so!

How much can you make on Airbnb in France?

According to Airbtics, an Airbnb host can expect to earn the highest annual revenue of €42,295 in Paris, France. The revenue for each city and neighborhood varies depending on the location, property type, and accessibility to local amenities among others.

Let’s take a look at some of the best examples of property investments in France! Creuse in Nouvelle-Aquitaine region offers the most affordable properties. Popular for its farmland and small villages, Creuse has beautiful natural landscapes across the region.

Average property price for a 1-bedroom apartment: €74,383
Average Airbnb annual revenue: €10,951
Gross rental yield: 14.72%

Where to Invest in France: Top 10 Profitable Airbnb Cities in France

So let’s get down to the chase! Here are the profitable areas to do Airbnb in France:

1. Cannes

Average property price (1-bedroom apartment): €495,000
Airbnb annual revenue: €24,097
Gross rental yield: 4.86%
Average Daily Rate: €108
Occupancy Rate: 56%

2. Chamonix-Mont-Blanc

Average property price (1-bedroom apartment): €600,000
Airbnb annual revenue: €14,915
Gross rental yield: 2.49%
Average Daily Rate: €84
Occupancy Rate: 45%

3. Menton

Average property price (1-bedroom apartment): €695,000
Airbnb annual revenue: €29,939
Gross rental yield: 4.31%
Average Daily Rate: €173
Occupancy Rate: 44%

4. Paris

Average property price (1-bedroom apartment): €530,000
Airbnb annual revenue: €42,495
Gross rental yield: 8.01%
Average Daily Rate: €136
Occupancy Rate: 92%

5. Saint Tropez

Average property price (1-bedroom apartment): €766,750
Airbnb annual revenue: €18,534
Gross rental yield: 2.42%
Average Daily Rate: €105
Occupancy Rate: 41%

6. Marseille

Average property price (1-bedroom apartment): €499,000
Airbnb annual revenue: €19,643
Gross rental yield: 3.94%
Average Daily Rate: €79
Occupancy Rate: 67%

7. Nice

Average property price (1-bedroom apartment): €695,000
Airbnb annual revenue: €28,396
Gross rental yield: 4.09%
Average Daily Rate: €98
Occupancy Rate: 76%

8. Bordeaux

Average property price (1-bedroom apartment): €310,900
Airbnb annual revenue: €20,022
Gross rental yield: 6.44%
Average Daily Rate: €83
Occupancy Rate: 70%

9. Lyon

Average property price (1-bedroom apartment): €355,000
Airbnb annual revenue: €19,025
Gross rental yield: 5.36%
Average Daily Rate: €75
Occupancy Rate: 74%

10. Toulouse

Average property price (1-bedroom apartment): €229,000
Airbnb annual revenue: €13,709
Gross rental yield: 5.99%
Average Daily Rate: €59
Occupancy Rate: 66%

Conclusion

Now that you have a clear overview of what it’s like to become an Airbnb host in France, don’t settle! There are other several profitable French areas that you can easily discover using an Airbnb analytics tool. Aside from learning about emerging markets, you can also spy on your competitors’ performance and strategize your investment.

Not only that – but you will also get to predict your revenue using an Airbnb profit calculator. Using historical, current, and forecasted rental data, you can take advantage of your leverage in the industry. Try Airbtics now and stand out among the rest!

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Is Airbnb legal in Cannes?

Don’t worry, Airbnb is legal in this French city! Cannes, France is a commune located in the Alpes-Maritimes department, and host city of the annual Cannes Film Festival, Its palm-planted Promenade de la Croisette follows the curve of the sand beach and is fringed with luxury hotels.

Currently, there are 17030 Airbnb listings in Cannes, with 69% of entire houses earning up to €2,168 a month, 27% managed by professionals, and 73% managed independently. Apart from complete houses, Cannes’ Airbnb offerings include 7% of private rooms and 22% of apartments(condos). Average Occupancy Rates in Cannes is 38% and average daily rate is €165. According to short-term rental market data source Airbtics, a 2-bedroom apartment in Cannes can make up to €30,504 each year.

Short-term rental policy in Cannes

– Prohibited to rent for more than 120 days per year if the accommodation you wish to rent is your main residence

– Required to declare your furnished tourist accommodation to the Cannes town hall

France’s General Legislations

You NO LONGER need to register your accommodation if:

– You rent a single room of your primary residence.

– You rent a bed and breakfast (chambre d’hôtes), a hotel or another hotel-like type of accommodation.

– You rent only on “bail mobilité” (mobility lease) scheme for a minimum of one month to a tenant justifying, on the effective date of the lease, to be in professional training, in higher studies, in apprenticeship contract, in internship, in voluntary engagement within the framework of a civic service, or on a temporary assignment in the context of his professional activity. Check out our article for more info about the mobility lease.

– You rent for long-term stays only – for a minimum of 1 year.

Whether you rent your main or secondary residence for a period of less than or more than 120 days per year in Paris, it is mandatory to make a declaration to the Town Hall (Mairie de Paris).

Short-term rental policy in France

– Required to report specific data to the French tax authorities on a yearly basis

– Report income from the rental of furnished premises on your annual tax return in the Industrial and Commercial Profit (BIC) category

– Guests who have booked a “mobility lease” accommodation are automatically exempt from paying tourist tax

– A primary residence is allowed to be put up for rent in full for a maximum of 120 days per year

– You can rent your secondary residence all year long provided you’ve declared your rental activity to the city.

Pros and Cons of running Airbnb

Short-term rentals are vacation rental properties rented out on a short-term basis to guests, like hotels. This form of rental helps guests to feel more at ease and “at home” because the properties are typically designed in this manner.

A long-term rental is the most common sort of rental property utilized for residential purposes. This sort of rental property is usually protected by a long-term lease agreement with more binding terms than a short-term rental. Renting out their homes for a higher price than their mortgage allows them to generate regular income regardless of the market. Because it is more traditional and well-known, most people are more familiar with this sort of rental property.

Now that we’ve defined vacation rentals and long-term rental properties, let’s look at each component of rental properties that explains both the benefits and drawbacks of a short-term or long-term rental.

Pros

1. Flexibility – You have the option of renting for days, weeks, or months. You can rent as much or as little as you want. There’s also the possibility of going on a trip at any time and earning money while doing so!

2. Privacy – Short-Term Rentals are ideal for families. They provide guests with more privacy and space than standard hotels.

3. Earns more money than a long-term rental – It’s simple to calculate: €1500 for a vacation week vs. €1500 per month to rent for a year.

4. Good Deductions – There are numerous popular deductions available to rental property owners. Cleaning and maintenance, insurance, management fees, and utilities are just a few of the costs to consider. You may make a loss and avoid paying taxes entirely if you take enough deductions.

5. Tax Breaks – Short-Term Rental Owners receive the best home-related tax breaks.

6. Less Wear and Tear on the Property – With frequent renters, you can keep up with tiny repairs before they become major issues!

7. Social Advantages – There are a lot of interesting people in the world, and many of them travel! Your next acquaintances in a Short-Term Rental could evolve into lifelong buddies!

Cons

1. Inconsistent payments – If you rely on a stable income, a yearly renter is a much safer option. There’s a chance you won’t have a Short-Term Renter for weeks or months.

2. Must cover the utilities – Utility costs are usually paid by long-term renters. Short-term tenants don’t.

3. Increased risk – There is a higher danger of theft, breakage, or problem tenants because of the number of tourists going through your doors.

4. Requires extra effort – Running a Short Term Rental requires more effort because you are the innkeeper. You’ll be in charge of collecting money, scheduling clients, and bringing in tenants. You’ll do it every week instead of every 5 years or so!

5. Additional maintenance expenses – As the landlord, you are responsible for housekeeping, pool maintenance, and general upkeep. Not always the case with a long-term renter.

6. Some HOA – Managed neighborhoods make it tough and complicated to rent short-term Rentals. People prefer comfortable, peaceful surroundings where they feel safe and know everyone, rather than random strangers coming and going at all hours. They may submit complaints, and some HOAs may sue Short-Term Rental Owners.