Airbnb is facing a new challenge in France after legislation tightening tax laws on rental income was passed.
The new law makes it harder for its users to avoid tax on rental income as it requires the house- sharing start-up to send tax data to the French authorities directly, rather than leaving it up to the individuals who are using the site to declare it.
The tighter controls were introduced after a hotel lobbying group convinced the country’s parliament to pass the law in an effort to curb Airbnb’s growth in France.
This follows legislation passed last year that makes it extremely difficult for Airbnb hosts to rent out their property for more than four months a year or to rent out somewhere that is not a primary residence.
Founded in 2008, the company is likely to face further challenges in France as the hotel lobbying group is seeking to impose further restrictions on Airbnb rentals including an increase in social security tax, VAT sales tax and a nightly tourist tax.