Short-term rental legislation in the Basque Country in 2023

The Basque Country, rich in its tourist appeal, has become one of the most sought-after areas for holiday rentals in France. This trend has led local authorities to tighten regulations governing this market, especially in 2023. Faced with increasing property pressure and a notable shortage of year-round available housing, new laws establish a strict framework aimed at rebalancing supply between tourist rentals and permanent residences. This is notably reflected in the implementation of the compensation principle, which requires owners to provide a counterpart for each area rented as furnished tourist accommodation. However, this development has sparked debates and opposition, particularly from platforms such as Airbnb, Booking.com, and Abritel, which face more rigorous regulation. Administrative procedures, eligibility criteria, and exceptions to this rule are important points to understand to better grasp this complex legislation. Through this detailed analysis, discover the current requirements, practical implications for owners, and prospects for tenants, especially in the 24 municipalities around Biarritz and other tourist areas of the Basque Country.

1. What are the main new features of the holiday rental regulations in the Basque Country in 2023?

At the heart of the changes introduced by the Agglomeration Community of the Basque Country (CAPB) in 2023, the implementation of the compensation principle is central. This measure aims to combat the decreasing availability of long-term rental housing in a so-called “strained” area. For each property intended for holiday rental, the owner must now ensure that an equivalent surface area is dedicated to permanent rental in the same municipality. This measure applies to primary residences rented for more than 120 days per year, as well as secondary residences used for tourist rentals.

Before its effective date on March 1, 2023, this regulation experienced a temporary suspension following an administrative suspension order from the Pau administrative court, citing significant difficulties regarding the availability of compensation surfaces. Indeed, judges considered that, due to a chronic lack of eligible premises, it was nearly impossible to meet this obligation in the 24 municipalities of the Basque Country classified as strained zones.

With the gradual easing of appeals, the framework is now fully applicable again, requiring owners and platform managers such as Airbnb, Locasun, Booking.com, or HomeAway to adjust their practices. This results in a series of strict formalities affecting notably the types of properties proposed, the duration of rentals, and the procedures for obtaining administrative permits.

• 🎯 Application of the compensation principle for all new holiday rentals
• 🎯 Limitation to a maximum of 120 days for primary residences
• 🎯 Obligation to transform or acquire a property for long-term rental
• 🎯 Previous suspension between June 2022 and March 2023, now lifted

For more information, the procedures are detailed by the Biarritz town hall on their official website, which provides a reliable and comprehensive resource on the subject.

2. The compensation principle explained: what does it concretely mean for owners?

The compensation principle represents a major innovation in the management of holiday rentals. It involves requiring owners of furnished tourist accommodations to provide a counterpart that helps preserve the balance of the local housing market. Thus, for every property withdrawn from the permanent rental pool due to tourism use, another property must be created or converted for long-term rental.

This compensation can be realized notably through:

• 🏠 Converting unoccupied commercial or office premises into residential units
• 🏠 Purchasing a commercial right from another owner with an unused premises that can be converted
• 🏠 Building new or renovating properties intended for permanent rental

This obligation aims to prevent the proliferation of tourist rentals via platforms like Airbnb or Abritel from exacerbating the housing shortage. On average, in the 24 concerned municipalities of the Basque Country, housing availability has decreased drastically in recent years. The compensation provides an administrative solution to prevent the success of short-term rentals from causing a more serious housing crisis.

It should be noted that some ground-floor commercial premises are excluded from the system to avoid hindering the development of local commerce, which is essential for community life.

Understanding this measure is essential to anticipate its costs and administrative procedures. Owners wishing to list their property on Airbnb, Booking.com, or Le Bon Coin should be very attentive to comply with these new obligations to avoid sanctions.

Practical steps to implement compensation

• 📋 Identify an eligible premises for transformation or an available commercial right
• 📋 Submit a change of use authorization request to the relevant town hall
• 📋 Provide a file including plans, supporting documents, and evidence of equivalent surface area
• 📋 Obtain official approval before offering the property as a tourist rental

For a more comprehensive guide on this subject, specialized platforms such as Alday Immobilier or CrazyHome offer detailed and updated explanations.

3. Exceptions allowing rental without compensation in the Basque Country: what are the special cases?

There are some conditions under which a property owner can rent a furnished tourist accommodation without applying the compensation principle. These exceptions are important to know to avoid unnecessary complex procedures:

• 🏡 If the rental concerns a primary residence and the duration does not exceed 120 days per year.
• 🏡 Rental of a student accommodation for a minimum of 9 months.
• 🏡 Renting out only a part of the primary residence, notably a furnished room integrated into the owner’s property.
• 🏡 Properties that have already benefited from an authorized change of use; the short-term rental status is then maintained until the permit expires.

This flexibility responds to the desire to preserve the traditional use of housing while regulating excesses in the seasonal market. It also offers some latitude for hosts to continue exploiting their property within a legal framework. This establishes that regulation does not apply uniformly but according to clearly defined criteria.

Many owners will prefer to seek assistance from a specialized real estate broker experienced in managing seasonal rentals. This type of professional greatly facilitates procedures and ensures compliance with current regulations. Useful advice can be found on Concierge Angels.

4. The concept of change of use: how does it fit into the legal framework?

One of the cornerstone concepts of the regulation is change of use. This legal term refers to modifying a premises’ purpose, for example turning a home into a hotel, an office into an Airbnb rental, or a commercial space into a tourist residence. This change involves switching to a different urban planning use category, with consequences for administrative approval.

In the 24 municipalities in strained zones of the Basque Country, any change of use from a residential property to a commercial or tourist use must be compensated by the reverse, namely the creation or transformation of a commercial space or non-residential premises into housing.

This allows for a strict balance of the housing stock, preventing the gradual disappearance of traditional rental housing and its replacement, without compensation, by tourist furnished units. This requirement obliges owners to be vigilant before listing properties on platforms like HomeAway or Locasun.

The procedures related to changing of use involve specific forms, including a detailed dossier describing the property and the envisaged compensation guarantees. These files are carefully reviewed by authorities to regulate the local market.

Resources such as WeHost provide detailed explanations of the administrative steps and assist owners in ensuring compliance.

5. Administrative procedures to legally rent a furnished tourist accommodation in 2023

In response to the strengthened framework, owners must follow a rigorous administrative process to be able to rent out their property seasonally in the Basque Country. Here are the main steps to follow:

• 📑 Complete and submit a change of use application when the property has never had this status
• 📑 Compile a detailed file including technical details, plans, and proof of compensation
• 📑 Ensure that the compensated surface area is located in the same municipality as the property intended for tourist rental
• 📑 Wait for official response from the town hall before listing the property on platforms like Airbnb or Tripadvisor
• 📑 Respect the imposed duration limits, especially the 120-day ceiling for primary residences

Owners should also pay attention to fiscal aspects and insurance for their rental activity. It is advisable to consult specialized guides on income taxation from seasonal rentals, easily accessible on platforms like Concierge Angels.

To support these procedures, some professionals offer complete management of seasonal rentals, from declaration to customer relations, as detailed by Concierge Angels in their dedicated guide.

6. Impact of the new regulations on holiday rental platforms

Specialized sites such as Airbnb, Booking.com, Expedia, Le Bon Coin, Locasun, and HomeAway had to adapt to these strict regulations from 2023. These platforms play a major role in the visibility and marketing of tourist accommodations in the Basque Country but must now ensure that listed properties comply with the new legal framework.

The main consequences for these actors include:

• 📉 Reduction in the number of legal listings available in strained zones
• 📑 Strengthening controls over the validity of change of use authorizations
• 📅 Strict limitation on short stays for primary residences
• 📣 Increased collaboration with local authorities to report irregularities

For users, these platforms often specify the current regulatory conditions. Tripadvisor, for example, includes advice on local compliance when booking accommodation in the Basque Country.

Online property management operators, such as HostnFly, position themselves as essential intermediaries to ensure compliant and professional service. More information on their expertise is available on specialty sites like concierge-angels.com.

7. Local specificities: what are the particularities in the 24 concerned municipalities?

Each Basque municipality subject to CAPB regulations must apply these rules within a specific local framework. While the national principles generally apply, there are particularities regarding the eligibility of premises for compensation and the tolerances granted.

For example:

• 🏘️ Biarritz imposes increased monitoring of tourist accommodations, as per information available on the town hall’s website biarritz.fr.
• 🏘️ Bayonne favors economic transformations, including the creation of housing in the city center.
• 🏘️ Saint-Jean-de-Luz differentiates seasonal rentals for students from other types to preserve its old housing stock.

These nuances influence access to change of use procedures and the preparation of administrative files. Here is a summary table of the main rules by area:

For personalized guidance on these specificities, consult recent news and analyses on sites like Prestant and judicial decisions available on the Bordeaux Administrative Court of Appeal.

8. Practical tips for managing your seasonal rental in compliance with the law in the Basque Country

Given this complex regulation, it is important for owners to adopt a proactive and organized approach. Here are some essential tips:

• 📅 Strictly follow administrative deadlines to avoid any formal notice
• 🛠️ Hire a professional specialized in managing seasonal rentals, especially those with good knowledge of local law
• 📊 Keep documents and proof of compensation updated for presentation to authorities in case of inspection
• 📆 Use digital tools like those offered by HostnFly or Concierge Angels
• 🛡️ Ensure appropriate insurance coverage for seasonal rental before listing your property

These measures help secure your investment and provide peace of mind. Many owners now prefer to work with professionals offering full service, from administrative requests to customer service and taxation.

For more in-depth advice, practical resources are available notably on Concierge Angels, which provides a comprehensive overview of recommended insurances.

FAQ – Frequently Asked Questions about holiday rental legislation in the Basque Country in 2023

• ❓ What is the compensation principle?
  It involves requiring owners listing for tourism to create or purchase a property intended for year-round rent to compensate for the surface area removed from the permanent housing stock.
• ❓ Which dwellings are subject to this regulation?
  Secondary residences rented short-term as well as primary residences rented for more than 120 days per year in the 24 municipalities in strained zones.
• ❓ What are the exceptions allowed?
  Rental of a primary residence limited to 120 days, rental to students for over 9 months, or partial rental within the primary residence.
• ❓ What is a change of use?
  It is the modification of a premises’ purpose, such as turning a dwelling into a commercial or tourist accommodation.
• ❓ How to request a change of use authorization?
  You need to prepare a detailed file, including plans and proof of compensation, then submit the application to the relevant town hall.