1. We understand from the Hôtes website that almost anyone can join that group/model. While there are some options (serving or not serving breakfast, for example), is it absolutely necessary for the B&B to be in somebody’s home? Does one need to live in one section of the rented apartment all the time?

2. Do you see any way for our current activity to work within the framework/model they propose?

I have learned that the city would not put together such a major campaign, going after owners doing short-term rental, if the only action owners had to take to get off the hook is to register with the B&B authority. There must be something more. Can you explain?

ANSWER

This is the key question, since traditionally a B&B allows one to stay in someone else’s home and share some basic things like one or two meals and some of the living space. This is the most definitive difference between a B&B and a short-term rental. That being said, both have appealing features and there should be room for each of them.

I have incorporated in English the answers found on the website so that you can get your questions answered and have a better understanding of the official requirements.

Who can be a B&B host?
Anyone can be a host, provided that it is done at his/her primary residence and at least one independent and comfortable room is dedicated for this activity.

How can one get endorsed by the Paris City Hall and benefit from the label Hôtes Qualité Paris?
You must contact one of the organizations approved by City Hall, and sign up with them. Then they will send a professional to visit and make sure your guest bedroom complies with the guidelines.

Can I be independent?
Yes, but you must be registered with City Hall under the latest version of the tourism ordinance, Articles 324-3, 4 and 5 of April 2006, which gives the legal definition of the B&B (called “chambres d'hôtes” in French) as: “Furnished bedrooms located inside a lodging dedicated to welcoming tourists who pay for one or more nights and the related services.” In French: "Chambres meublées situées chez l'habitant en vue d'accueillir des touristes, à titre onéreux, pour une ou plusieurs nuitées, assorties de prestations".

You can download the registration form here: "Formulaire de déclaration à la Mairie".
A copy of the relevant regulation may be found here: “Décret du 3 août 2007".

Can I be a B&B host if I am myself a renter?
Yes, you can, if the lease does not explicitly forbid it. In any case, it is highly advisable to inform the landlord, who in return will check the by-laws of the co-ownership to make sure that there is no provision against this activity. Of course, if you rent in a low-income housing project, in French (H.L.M.) then it is completely forbidden.

What is the main difference between B&B and short-term rental?
Welcoming the guests! In this case, the host meets the guest, who stays in his home and sometimes joins him for meals. Guests in a short-term rental almost never meet the host.

Am I taxed on this rental income?
Yes. It should be reported on form 2042 C, and you will get an automatic deduction of 71% of the money received from this activity.

Should I purchase more insurance?
You may not need to, but on the other hand you must inform your insurance company of this new activity and the company will add a rider on the policy for it, often without increasing your premium.

Now, I would like to answer your questions myself.

Is it absolutely necessary for this to be inside somebody’s home?
Yes. The guidelines quoted above make it very clear not only that it must happen in somebody’s home but also that the home must be their primary residence; to be completely clear, the website points to the legal and fiscal definition of a primary domicile. An American resident owning an apartment who would like to get into the B&B activity would have to declare that he or she is a French fiscal resident, which would have to be linked to being a legal immigrant, i.e., holding a valid carte de séjour.

Do you see any way for our current activity to work within this framework/model they propose?
Again, the answer is clear: as the first and foremost requirement is to be a fiscal resident of France and live in the apartment, it is totally unrealistic to consider filling out the form and registering on the chance that no one will follow up. It would take about five minutes for anyone to discover the scam – calling the tax office will do it!

I would like to add a personal comment about this entire situation. I have witnessed the rise of the short-term rental industry in Paris. At first, I saw mostly American and British citizens trying their best to please their clients and manage the apartments well. Their set-ups were not always perfectly legal, nor did they often have a nice office to run their business out of, but most of them were good people and behaved professionally. Then came the second and third generations as the market grew and it became popular to stay in a private home. Foreigners also saw that this was an easy way to purchase an apartment in Paris as well as making a decent income.

The ruthless reaction of City Hall, in my opinion, is due to the scandalous way too many players in this industry have managed their affairs. I would call them crooks. What makes me sad is that there are several good professionals who are losing a good business because the French authorities cannot easily distinguish the good from the bad. I am not convinced that the Parisian authorities have made the best decision, but I do not blame them for having put a stop to a despicable way of doing business. In other words, if one wants to blame someone for the situation and is tempted to blame the French and their cumbersome, inefficient and ruthless administration, think again: they are just trying to protect the public from the sharks.

Useful contacts:
Mairie de Paris (City Hall)
www.paris.fr and 39 75 (Paris Info Mairie)

Ile-de-France region
DECV/STL, Tourism sector secretariat
0 803 818 000 (0.15 euros per minute)
www.pidf.com or www.iledefrance.fr

Direction Générale de la Consommation, de la Concurrence et de la Répression des Fraudes (DGCCRF)
www.dgccrf.fr

Centre de documentation et d’information sur l'assurance (CDIA)
www.cdia.fr

Impôts Service
0820 32 42 52 and www.impots.gouv.fr

Information Services Publics
39-39 and www.service-public.fr

Jean Taquet holds a masters degree in law from the Sorbonne University and the French BTS accounting degree. He served as a jurist officer in the French Army in1985. He has been managing the refugee ministry of the American church since 1993, and has written the Question and Answer column in the Paris Free Voice. Read his complete bio .

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