Vacation Rental Legislation in the Basque Country in 2023

Basque Country, rich in its touristic appeal, has become one of the most sought-after regions for vacation rentals in France. This trend has led local authorities to strengthen regulations governing this market, especially in 2023. Confronted with increasing real estate pressure and a notable shortage of available long-term housing, new laws establish a strict framework aimed at rebalancing supply between tourist rentals and permanent dwellings. This is notably implemented through the introduction of the compensation principle, which requires owners to provide a counterpart for each surface 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 all points that need to be understood to better grasp this complex legislation. Through this detailed analysis, discover the current requirements, practical implications for owners, and opportunities offered to tenants, particularly in the 24 municipalities around Biarritz and other tourist sectors of the Basque Country.

1. What are the main new features of the regulations on seasonal rentals in the Basque Country in 2023?

At the heart of the changes introduced by the Community of Agglomeration 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 “tense” area. For each property intended for vacation 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 rentals.

Before its entry into force on March 1, 2023, this regulation experienced a temporary suspension following a suspensive referral by the Pau administrative court, highlighting major difficulties concerning the availability of compensation surfaces. Indeed, judges deemed that due to the chronic shortage of eligible premises, it was practically impossible to fulfill this obligation within the 24 towns of the Basque Country classified as tense zones.

With the gradual easing of appeals, the framework is now fully operational again, requiring owners and platform managers such as Airbnb, Locasun, Booking.com, or HomeAway to adapt their practices. This entails a series of strict formalities, particularly affecting the nature of offered properties, rental durations, and procedures for obtaining administrative authorizations.

• 🎯 Application of the compensation principle for any new seasonal rental
• 🎯 Limitation to 120 days maximum for primary residences
• 🎯 Obligation to transform or acquire a property intended 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 topic.

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

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

This compensation can be realized notably through:

• 🏠 Transformation of commercial premises or vacant offices into residential housing
• 🏠 Purchase of a commercial title from another owner with an unused property that can be converted
• 🏠 New construction or renovation of properties intended for permanent rental

This obligation aims to prevent the growth of tourism rentals through platforms such as Airbnb or Abritel from aggravating the shortage of year-round housing. On average, in the 24 concerned municipalities of the Basque Country, the availability of housing has dramatically decreased in recent years. The compensation provides an administrative solution to prevent the success of short-term rentals from leading to a broader housing crisis.

It should be noted that some ground-floor commercial premises are excluded from the scheme 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 via Airbnb, Booking.com, or Le Bon Coin must be very attentive to comply with these new obligations to avoid sanctions.

Practical steps to carry out compensation

• 📋 Identify a suitable premises for transformation or an available commercial title
• 📋 Submit an application for change of use at the relevant town hall
• 📋 Provide a file including plans, supporting documents, and evidence of the equivalent surface area
• 📋 Obtain official approval before listing 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 specific cases?

There are some conditions under which an 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 housing unit for a minimum of 9 months.
• 🏡 Rent of only a part of the primary residence, notably a furnished room integrated into the owner’s home.
• 🏡 Properties that have already benefited from an authorized change of use; in this case, the short-term rental status remains valid until the approval expires.

This flexibility aims to preserve the traditional use of housing while regulating the excesses of the seasonal market. It also provides some room for certain hosts to continue exploiting their property within a legal framework. This establishes that regulations do not apply uniformly but are based on clearly defined criteria.

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

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

One of the cornerstones of the regulation is the notion of change of use. This legal term refers to the modification of the purpose of a premises, such as transforming a dwelling into a hotel, converting an office into an Airbnb rental, or turning a commercial space into tourist accommodation. This change involves moving into a different urban planning use category, with consequences for administrative authorization.

In the 24 municipalities in tense zones of the Basque Country, any change of use of a residential property into a commercial or touristic use must be compensated by the opposite, that is, the creation or transformation of a commercial space or other non-residential space into housing.

This allows establishing a strict balance of the housing stock, preventing the gradual disappearance of traditional rental housing and its replacement without compensation by tourist furnished rentals. This requirement necessitates vigilance by owners before any listing via platforms such as HomeAway or Locasun.

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

To assist with these procedures, resources such as WeHost provide detailed information on administrative steps and support owners in ensuring compliance.

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

In response to the strengthened regulations, 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 permit application when the property has never had this status
• 📑 Prepare a detailed file including technical elements, plans, and compensation supporting documents
• 📑 Ensure that the compensated surface area is located in the same municipality as the property intended for tourist rentals
• 📑 Wait for the official response from the town hall before proceeding to list the property on sites like Airbnb or Tripadvisor
• 📑 Respect the imposed duration limits, especially the 120-day maximum per year for a primary residence

Owners should also pay attention to the tax aspect and the insurance of their rental activity. It is advisable to consult specialized guides on the taxation of income from seasonal rentals, easily available on platforms such as Concierge Angels.

To assist with 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 seasonal rental platforms

Specialized sites such as Airbnb, Booking.com, Expedia, Le Bon Coin, Locasun, and HomeAway have had to adapt to these comprehensive regulations 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 list.

The main consequences for these players are:

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

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

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

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

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

For example:

• 🏘️ Biarritz enforces enhanced monitoring of tourist furnished rentals, according to 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 distinguishes seasonal rentals for student use from other types of rentals to preserve its historic housing stock.

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

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

8. Practical advice 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 formal notices
• 🛠️ Consult a professional in specialized rental management, especially those familiar with local law
• 📊 Keep detailed records and proof of compensation for inspections
• 📆 Use digital tools such as those offered by HostnFly or Concierge Angels
• 🛡️ Ensure that appropriate insurance for seasonal rentals is in place before listing

These measures help secure your investment and ensure peace of mind. Many owners now opt for professionals providing a full service, from administrative procedures to client relations and tax compliance.

For further resources on these tips, practical resources are available, notably on Concierge Angels, which offers a comprehensive overview of recommended insurance options.

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

• ❓ What is the compensation principle?
  It involves requiring owners renting out for tourism purposes to create or purchase a property intended for year-round rental to offset the surface area removed from the permanent residential stock.
• ❓ Which properties are subject to this regulation?
  Secondary residences rented short-term and primary residences rented more than 120 days per year in the 24 municipalities in tense zones.
• ❓ What are the authorized exceptions?
  Rental of a primary residence limited to 120 days, rental to students for more than 9 months, or partial rental within the primary residence.
• ❓ What is a change of use?
  It is the modification of the purpose of a premises, such as converting a dwelling into a commercial or tourist use.
• ❓ How to apply for a change of use authorization?
  Prepare a detailed file, including plans and proof of compensation, then submit it to the relevant town hall.