What the ELAN Act changes for Nice and neighbouring towns

Who is affected by the ELAN Act

Nice and 17 other high-pressure housing towns

The ELAN Act primarily targets 18 French towns identified as high-demand housing zones. Nice, the jewel of the Côte d'Azur, features prominently on this list of "under-pressure towns". But it is not the only one facing these real estate challenges.

• Paris
• Lyon
• Bordeaux
• Nice
• Lille
• Nimes
• Aix-en-Provence
• Versailles
• Annecy
• Sete
• Menton
• Neuilly-sur-Seine
• Levallois-Perret
• Villeneuve-Loubet
• Roquebrune-Cap-Martin
• Martigues
• Saint-Paul-de-Vence
• Saint-Cannat

Communes with more than 200,000 inhabitants

This list of 18 towns is not exhaustive. Even if your commune is not on it, it could still be subject to the ELAN Act provisions. The legislature extended the scope of the Act to other territories.

The extension of the ELAN Act covers all French communes with more than 200,000 inhabitants, as well as those located in so-called "high-demand" housing zones. These zones are characterised by a marked imbalance between housing supply and demand.

To find out whether your commune is concerned, the government has set up an official simulator.

ELAN Act simulator →

Towns near Nice that are concerned

This region, renowned for its tourist appeal and dynamic property market, is particularly affected by the ELAN Act provisions.

Nice, with its 342,637 inhabitants (INSEE 2018 figures), is on the front line. But it is not the only town on the Cote d'Azur in scope.

Their inclusion is explained by:

• Strong property pressure linked to tourist appeal
• A tight rental market, with difficulties for permanent residents accessing housing
• A high proportion of secondary residences and short-term rentals

This list is not fixed. Other communes could be added to the scheme in future.

Regulation of short-term rentals under the ELAN Act

Rules for primary residences

What is a primary residence?

• It is a property where you live for at least 8 months per year.
• This definition determines the rules that apply.

How many nights can you rent?

• Up to 90 nights per year (approximately 3 months).
• This cap prevents too many properties from becoming tourist accommodation.

What must you do before renting?

• Declare your property to the city hall, even for a single night.
• Obtain a 13-digit registration number.
• Display this number on all your online listings.

How are the rules enforced?

• Sites like Airbnb automatically block listings after 120 days.
• These platforms inform city halls each year of the number of nights rented.

Penalties:

• Up to 5,000 € fine if you do not declare your property.
• Up to 10,000 € if you exceed the day limit.

Rules for secondary residences

How many nights can you rent?

• No annual night cap, unlike primary residences.
• But other rules apply.

Procedures:

• Apply to the city hall for a change-of-use authorisation for the property.
• This authorisation may be temporary or permanent depending on the town.

The "compensation" rule:

• Some towns, like Nice, require a counterpart.
• For example: buying commercial premises and converting them into housing.

Taxes:

• Income from these rentals is taxable.
• If you earn more than 23,000 € per year, you will need to register as a self-employed worker.

Cote d'Azur example: in Antibes, change of use is only permitted in certain districts, to maintain a balance between tourists and permanent residents.

Rules for mixed rentals

The city of Nice has introduced an innovative scheme: mixed rental. Renting to a student during the academic year and to tourists during the summer.

What is a mixed rental?

• Renting to a student during the year and to tourists in June-July-August or July-August-September.

Who can benefit?

• Private owners and companies.
• For private individuals: possible after 6 or 9 years for a first authorised furnished tourist accommodation.

Advantages:

• No cap on the number of authorisations.
• No compensation required.

Conditions:

• Capped rents for students (e.g. 500 € for a studio, 650 € for a one-bedroom flat).
• The property must meet decent housing standards.
• The student must be a CAF benefit recipient and occupy the property for at least 5-6 months.

Procedures:

• Apply to the city hall for a change-of-use authorisation.
• Sign an agreement with the student, CROUS and the City of Nice before 31 December.
• Submit a complete file before 31 March of the following year.

Tourist tax:

• Mandatory online declaration and registration number required.
• This number is mandatory to advertise a rental on platforms.

This solution allows owners to maximise the occupancy of their property while contributing to the student housing supply. It is a good compromise between profitability and social utility, specifically adapted to the Nice context.

Remember: rules can change. Always consult the Nice city hall website for the most up-to-date information.