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 regions for seasonal rentals in France. This trend has led local authorities to strengthen regulations governing this market, especially in 2023. Facing increasing real estate pressures, with a notable shortage of year-round available housing, new laws establish a strict framework aimed at restoring balance between tourist rentals and permanent housing. This is notably reflected in the implementation of the compensation principle, requiring 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 are confronted with tighter regulations. Administrative procedures, eligibility criteria, and exceptions to this rule are key points to understand in order to better grasp this complex legislation. Through this detailed analysis, discover the current requirements, practical implications for owners, and future prospects for tenants, especially in the 24 municipalities around Biarritz and other tourist sectors of the Basque Country.

1. What are the main updates to the seasonal rental regulations in the Basque Country in 2023?

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

Before its enforcement on March 1, 2023, this regulation experienced a temporary suspension following an interim order from the Pau administrative court, citing major difficulties related to the availability of compensation surfaces. Indeed, judges had considered that due to the chronic lack of eligible premises, it was practically impossible to fulfill this obligation in the 24 municipalities of the Basque Country classified as a tight zone.

With the gradual easing of appeals, the framework is now fully operational again, requiring owners and platform managers like Airbnb, Locasun, Booking.com, or HomeAway to adapt their practices. This results in a series of strict formalities, impacting notably the nature of the properties offered, the duration of rentals, and the procedures for obtaining administrative permissions.

• 🎯 Enforcement of the compensation principle for all new seasonal rentals
• 🎯 Limitation to a maximum of 120 days for primary residence rentals
• 🎯 Obligation to transform or acquire a property intended for long-term rental
• 🎯 Previous suspension between June 2022 and March 2023 lifted

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

2. Explaining the compensation principle: what does it concretely mean for owners?

The compensation principle represents a major innovation in managing seasonal rentals. It involves imposing on owners renting furnished tourist accommodations a counterparty that aims to preserve the balance of the local housing market. Thus, for each property taken out of the permanent rental market due to tourist use, another property must be created or converted for long-term rental.

This compensation can be achieved notably through:

• 🏠 Converting unused commercial spaces or offices into residential units
• 🏠 Buying a commercial property rights from another owner with an unused premises that can be converted
• 🏠 Newly building or renovating properties intended for permanent rental

This obligation aims to prevent the multiplication of tourist rentals via platforms such as Airbnb or Abritel from worsening the year-round housing shortage. On average, in the 24 concerned municipalities of the Basque Country, housing availability has drastically decreased in recent years. Compensation offers an administrative solution to prevent the success of short-term rentals from leading to a more severe 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 vital to community life.

Understanding this measure is essential to anticipate its costs and administrative procedures. Owners wishing to rent on Airbnb, Booking.com, or Le Bon Coin must pay close attention to complying 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 comprising plans, documentation, and evidence of equivalent surface area
• 📋 Obtain official approval before offering the property for tourist rental

For a more comprehensive guide on this subject, specialized platforms like 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 a few 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 complicated procedures:

• 🏡 If the rental concerns a primary residence and the duration does not exceed 120 days per year.
• 🏡 Rental of a student dwelling for a minimum duration of 9 months.
• 🏡 Partial rental of the primary residence, especially renting out a furnished room within the owner’s home.
• 🏡 Properties that have already benefited from an authorized change of use; the short-term rental status remains valid until the permit expires.

This flexibility aims to preserve the traditional use of housing while regulating excesses in the seasonal market. It also allows certain hosts to continue managing their property within a legal framework. This establishes that regulations are not applied uniformly but based on well-defined criteria.

Many owners will prefer to engage a specialized real estate broker who manages seasonal rentals. Such professionals greatly facilitate procedures and ensure 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?

A cornerstone of the regulation is the concept of change of use. This legal term refers to modifying the purpose of a premises, for example converting a dwelling into a hotel, an office into an Airbnb rental, or a commercial space into tourist accommodation. This change involves shifting into a different urban planning category, with consequences for administrative approval.

In the 24 municipalities in the tight zone of the Basque Country, any change of use from a residential property to a commercial or tourist use must be compensated by the inverse, meaning the creation or transformation of a commercial space or other non-residential premises into housing.

This allows establishing a strict balance of the housing stock, preventing the gradual disappearance of traditional rental units and their replacement without compensation by tourist furnished accommodations. This requirement necessitates vigilance from owners before listing properties via platforms like HomeAway or Locasun.

The procedures related to change of use involve filling out specific forms, including a detailed dossier describing the property and the planned compensation guarantees. These dossiers are carefully examined by authorities to regulate the local market.

Resources such as WeHost provide detailed steps for administrative procedures and assist owners in ensuring compliance.

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

In the face of tighter regulation, owners must follow a rigorous administrative process to rent out their property seasonally in the Basque Country. Here are the main steps to follow:

• 📑 Fill out and submit a change of use authorization request if the property has never had this status
• 📑 Prepare a detailed file including technical elements, plans, and proof of compensation
• 📑 Ensure that the compensated surface area is located in the same municipality as the property intended for seasonal rental
• 📑 Wait for the official response from the city hall before listing on sites such as Airbnb or Tripadvisor
• 📑 Respect the imposed duration limits, especially the 120-day cap for primary residences

Owners should also consider tax implications and insurance aspects of their rental activity. It is advised to consult specialized guides on the taxation of seasonal rental income, readily available on platforms like Concierge Angels.

To assist with these procedures, some professionals offer full management services for seasonal rentals, from declaration to customer service, as detailed by Concierge Angels in their dedicated guide.

6. Impact of the new regulations on seasonal rental platforms

Specialized sites such as Airbnb, Booking.com, Expedia, Le Bon Coin, Locasun, or HomeAway have had to adapt to this heavy regulation starting in 2023. These platforms play a major role in the visibility and marketing of tourist accommodations in the Basque Country but must now ensure the compliance of the properties they offer.

The main consequences for these actors are:

• 📉 Reduction in the number of legal listings available in tight 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 instance, includes advice on local compliance when booking a stay in the Basque Country.

Online rental management operators like HostnFly position themselves as essential intermediaries to ensure compliant and professional service. For more information, their expertise is highlighted on specialized sites like concierge-angels.com.

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

Each Basque municipality subject to the CAPB regulations must apply these rules within a specific local framework. While national principles generally apply, particularities remain concerning eligibility of premises for compensation and tolerated exceptions.

For example :

• 🏘️ Biarritz imposes reinforced monitoring of tourist furnished accommodations, according to information available on the city hall website biarritz.fr.
• 🏘️ Bayonne encourages economic transformations such as creating housing in the city center.
• 🏘️ Saint-Jean-de-Luz distinguishes seasonal rentals for student purposes from other types of rentals to preserve its old housing stock.

These nuances influence access to change of use procedures and the assembly of administrative files. A summarized table of main rules by zone follows:

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

8. Practical tips for managing seasonal rental legally in the Basque Country

Facing this complex regulation, owners should adopt a proactive and organized approach. Here are some key tips:

• 📅 Diligently follow administrative deadlines to avoid formal notices
• 🛠️ Consult a management professional specialized in seasonal rentals, especially those familiar with local law
• 📊 Keep documentation and proof of compensation ready for authorities in case of inspections
• 📆 Use digital tools such as those offered by HostnFly or Concierge Angels
• 🛡️ Ensure appropriate insurance for seasonal rental is in place before listing the property

These measures help secure the investment and provide peace of mind. Many owners now opt for professional services that handle everything from administrative requests to customer service and taxation.

To further these tips, practical resources such as Concierge Angels offer a comprehensive overview of recommended insurances.

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

• ❓ What is the compensation principle?
  It involves obliging owners renting tourist accommodations to create or purchase a dwelling intended for year-round rental to compensate for the surface area withdrawn from the permanent housing stock.
• ❓ Which dwellings are subject to this regulation?
  Secondary residences rented short-term and primary residences rented more than 120 days per year in the 24 municipalities of the tight zone.
• ❓ What are the authorized exceptions?
  Primarily residence rentals limited to 120 days, rentals to students for longer than 9 months, or partial rentals within the primary residence.
• ❓ What is a change of use?
  It is the modification of a premises’ purpose, such as converting a residence into a commercial or tourist facility.
• ❓ How to apply for a change of use authorization?
  Prepare a detailed dossier including plans and proof of compensation, and submit the request to the relevant city hall.