FrançaisThe civil or commercial definition of Airbnb-type seasonal rentals
On January 25, 2024, the French Supreme Court (Cour de cassation) issued a decisive ruling on the civil or commercial nature of seasonal rentals. This will have a considerable impact on real estate law in Nice, given the large number of so-called seasonal rentals. Ruling no. 44 F-D, appeal no. A 22-21.455, specifies that short-term furnished rentals via platforms such as Airbnb cannot be considered a commercial activity as long as they do not offer para-hotel services. This decision is based on article 261 D of the French General Tax Code, which defines the services required for an activity to be considered commercial. This clarification was essential for owners and co-owners in Nice, as there is still a great deal of litigation before the courts, particularly in the south of France.
Consequences on the prohibition of seasonal rental activity in the co-ownership regulations
This ruling by the French Supreme Court (Cour de cassation) clarifies the situation for co-owners in Nice with regard to short-term furnished rentals. Prior to this ruling, uncertainty as to the commercial nature of such rentals often led to conflicts between co-owners. It has now been established that rentals without hotel-like services are not commercial. In our view, the logical consequence is that amending the condominium by-laws to prohibit this type of activity will require the unanimous approval of the co-owners, rather than a simple majority.
This will undoubtedly have a positive impact on investors. On the other hand, permanent or even temporary residents risk having their peace and quiet disturbed by this type of activity. However, there are other, more difficult solutions for putting an end to a disturbance in a condominium.
Legal advice for property owners in Nice
For owners and co-owners in Nice, it is essential to fully understand the implications of this ruling in order to comply with current legislation and optimize the use of their property.
As previously mentioned, this ruling will have an impact on the possibility of modifying co-ownership regulations not only in Nice, but throughout France. It would indeed be highly logical for unanimity to be required.
Our real estate law firm can help you bring your rental activities into line with the law, and resolve potential conflicts during general meetings. For a personalized consultation, contact our law firm in Nice, and benefit from our expertise to ensure the smooth and legal management of your real estate. You can reach us here.
On this link, you’ll find the Cour de cassation ruling on the civil or commercial nature of Airbnb seasonal rentals.
