Furnished accommodation in the Basque Country – a new regulation to take into account

The Basque Country is naturally an attractive tourist destination and has grown considerably in popularity in recent years. Many investors have taken advantage of this, resulting in thousands of vacation rentals in Pays Basque.

These rentals are particularly popular in Ahetze, Anglet, Arbonne, Arcangues, Ascain, Bassussarry, Bayonne, Biarritz, Bidart, Biriatou, Boucau, Ciboure, Guéthary, Hendaye, Jatxou, Lahonce, Larressore, Mouguerre, Urrugne, Saint-Jean-de-Luz, Saint-Pierre d'Irube, Urcuit, Ustaritz, and Villefranque.

Basque Country furnished accommodation

Despite the practical side from the point of view of tourists and the winning side from the point of view of investors, these accommodations have caused:

  • A scarcity of housing
  • An increase in purchase and rental prices
  • Conflicts of use within condominiums

 

These effects of furnished tourist accommodation mean that in March 2022, community elected officials elected new regulations aimed at curbing the development of furnished tourist accommodation in the Basque Country after noting:

  • A 130% increase in rentals of furnished tourist accommodation in 5 years, between 2016 and 2020, going from around 7 active ads in 150 to around 2016 in 16.
  • A confirmed increase in short-term rentals for each of the 24 municipalities: rentals which are still intensifying in the coastal municipalities and developing in the retro-coastal municipalities.
  • Active advertisements which for 67% of them concern accommodation available more than 4 months in the year in 2020, 95% of advertisements in 2020 concern entire accommodation.

 

What are the new regulations?

It is aimed at owners renting their main residence for more than 120 days a year as well as those renting their secondary residence to transient customers for short periods.

The compensation consists in transforming into housing premises not devolved to habitation (office, shop, etc.). This compensation thus makes it possible to reconstitute the "loss" of a dwelling by creating another dwelling.

The premises must have a surface area at least equivalent to that subject to seasonal rental and be located in the same municipality. A so-called “change of use” authorization is then issued.

This regulation is intended for natural and legal persons (particularly real estate companies).

 

Two derogations: for student rentals and furnished accommodation associated with the main residence

He will be authorized to rent his property to a student for nine months and in furnished tourist accommodation during a summer period of three months.

This measure ensures a rental offer for students.

It will be authorized to rent furnished accommodation if it is located in the main residence of the owner (these premises are not necessarily suitable for annual rental).

This regulation is likely to affect 11 second homes, or 000% of the overall housing stock in the Basque Country and aims to put some of them back on the year-round rental market.

 

Some details

The filing of the change of use file for the property subject to compensation is done either at the town hall or at the CAPB's shared service from June 1, 2022. It must be concomitant with that of the change of destination filing transforming the premises serving as compensation.

Authorizations already issued under the previous regulation remain valid until expiry of the validity date provided for under the corresponding order. At the end of this date, the owner, if he intends to continue his business of renting furnished tourist accommodation, must comply with the new regulations by filing a new authorization request according to the new terms and conditions.

An evaluation of the regulation, within two years of its entry into force, will aim to assess the impact of the measures on the housing market.

Control operations will be carried out with the assistance of State services to ensure proper compliance with this regulation.

 

Invest in the Basque Country with O'Plus Immobilier

The creation of'O'Plus Real Estate comes from the notoriety of the brand and the excellent reputation of Brocante O'Plus, present in Anglet for nearly 30 years and the desire to sweep up traditional real estate, to dust off methods and above all to refocus on human relations. Trust, respect and honesty are key values ​​that are all too often flouted in this profession.

So, let us trust each other and come and present your project to us!

O'Plus Immobilier team