HOLIDAY LETTINGS IN FRANCE: TIPS AND TRICKS municipality can decide under certain conditions to authorise, or not, such an activity in particular premises. In such a case, the properties will be deemed to be premises of commercial nature exclusively dedicated to holiday lettings and not anymore as residential premises that could be offered under long-term rental for housing for instance.3 This results from construction rules: in France a distinction is made between properties which are used as housing and properties which can be used for business, industrial purposes, etc.4 The legal scheme for holiday lettings is regularly amended and completed and now becomes quite complex for lessors. Failure to comply with the above- -mentioned legal framework can give rise to a significant fine of the lessor pursuant to Article L.324-1-1 of the tourism code, for instance a fine of up to euros 5,000 in case of failure to make the requested declaration, up to euros 10,000, for failure to comply with the 120 days duration if the accommodation let is the main residence; and up to euros 50,000 for failure to proceed with the change of use pursuant to article L.6512 of the French Construction and Housing Code. Indeed, French municipalities that are now directly benefiting from this legal framework, and in particular the city of Paris, are keen to pursue indelicate lessors who are offering holiday lettings more than 120 days a year without any letting permit and/or without change of use of premises subject to holiday lettings. Such a legal framework was in addition approved by the European Court of Justice.5: This case concerned two lessors who offered studio apartments in Paris, for rent for short periods to a transient clientele via a website, repeatedly and without prior authorisation. They were prosecuted for breach of Article L.6317 of the French Construction and Housing Code. The Cour de Cassation (highest court in France) on appeal formed by the lessors, decided to refer this matter to the European court of justice for a preliminary ruling. Indeed, the lessors who were held to pay, each, a fine of euros 15,000 considered that these provisions did not comply with European principles, and in particular with the provisions of the Directive 2006/123/EC of the European Parliament and of the Council of 12 December 2006 on services in the internal market. In its decision, the European Court of Justice considered in particular that the French legislation relating to prior authorisation and change of use applicable to holiday lettings, was not only justified by an overriding reason relating to the public interest 3 Article L.631-7 French Construction and Housing Code. 4 NB: under French law holiday lettings are considered as a business activity and not as a civil activity (as would be long-term renting), whether this is carried out on a professional or non-professional basis. 5 ECJ, 22 September 2020, C-724/18 & C-727/18.
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