Airbnb in Biarritz and on the Basque Coast: what will change in 2020

Each year, more and more holidaymakers come to discover the wealth of the Basque Country, its traditions, its grandiose landscapes, its heritage and its wild beaches. The reputation of the Basque Coast internationally increased further in 2019 with the exceptional visibility offered by the G7 in Biarritz.

The economic dynamics of this region, and the particularly high rates of return on furnished tourist rentals attract investors from all over the world, who choose to invest in a seasonal rental investment on the Basque Coast, whether it is a sea view studio, an apartment in the city center, or a villa with a swimming pool.

In order to regulate this activity, the Basque Country Agglomeration Community has just taken a measure aimed at curbing the exponential development of seasonal rentals such as Airbnb or Abritel, which competes with professional hoteliers, and contributes to the increase in the price of real estate on the Basque Coast. In the town of Anglet, for example, the number of seasonal rental ads increased by 140% between 2016 and 2018, from 710 to 1,700.

Since 2016, individuals wishing to offer rental accommodation are required to register at the town hall, thus allowing the municipality to collect tourist taxes. The law had set the limit at 120 nights per year for the rental of a principal residence.

From January 1, 2020, the regulations for the rental of seasonal furnished accommodation will change. The Basque Country Agglomeration Community has voted to limit the number of properties that each lessor can rent out on Airbnb or any other platform depending on the geographical area. More than 8,000 homes would be affected throughout the Basque Country.

- Thus in Zone 1, rental is limited to one property per lessor and per municipality: Anglet, Biarritz, Bidart, Guéthary, Ciboure, Urrugne, Saint-Jean-de-Luz, Hendaye.
- In zone 2, the rental is limited to two properties per lessor and per municipality: Ascain, Ahetze, Arbonne, Arcangues, Bassussarry, Bayonne.
- In zone 3 : Jatxou, Saint-Pierre-d’Irube, Monguerre, Lahonce, Villefranque, Urcuit, Ustaritz, Larressore, Biriatou, Boucau : there are no limitations

This first restriction procedure put in place for January 1, 2020 will only concern “natural person” owners.
In a second step, the measure will be adapted to legal persons, in particular SCIs (no implementation dates for the moment)

To find out more about the new regulations for Airbnb accommodation on the Basque Coast, or if you would like advice on investing in property on the Basque Coast, please contact us.