Short-Term Renting/Airbnb in Northern Basque Country: A Quick Snapshot

Over the past year and a half, we have been fielding many questions regarding the new regulation on short-term rentals in Northern Basque Country. We have tried to simplify the regulation into a quick snapshot below.

There are 24 towns adhering to this new regulation
Ahetze, Anglet, Arbonne, Arcangues, Ascain, Bassussarry, Bayonne, Biarritz, Bidart, Biriatou, Boucau, Ciboure, Guéthary, Hendaye, Jatxou, Lahonce, Larressore, Mouguerre, Saint-Jean-de-Luz, Saint-Pierre-d' Irube, Urcuit, Urrugne, Ustaritz, Villefranque.

Understanding the Airbnb Regulations in Biarritz and Surrounding areas
If you are considering purchasing property in Biarritz, it's crucial to understand the recent regulations affecting short-term rentals, such as those listed on Airbnb. Biarritz, along with other communes in the Northern Basque Country, have implemented new rules to control the surge in short-term rental properties, which have significantly impacted the local housing market and the local residents.

Background of the Regulation
The attractiveness of the Basque Coast and its lifestyle has led to a significant increase in the number of furnished tourist accommodations. This growth, driven by the high profitability of short-term rentals, has exacerbated the housing shortage for residents. The local council has identified several issues:
- Increased housing pressure: The rise in short-term rentals has limited the availability of long-term rental housing, making it harder for locals to find affordable homes.
- Rising real estate prices: The high demand for short-term rental properties has driven up property prices, making homeownership less attainable for local residents.
- Socio-spatial segregation (gentrification): The influx of tourists and temporary residents has pushed lower-income families and middle-class residents away from coastal areas.
To address these challenges, the Basque Community Council implemented a new regulation on July 9, 2022, with the aim of balancing the development of tourist accommodations and the availability of long-term housing.

Key Aspects of the New Regulation
1. Authorization Requirement:
   - Property owners must obtain prior authorization to convert residential units into short-term rental properties.
   - This authorization is subject to a principle of compensation, which involves converting non-residential spaces into long-term housing to offset the loss of residential homes. In short, if you want to make a short term rental, it is not a given. You would have to obtain authorization to convert a commercial property into long-term residential homes and also purchase and get authorization to convert a residential property into a short-term rental property. Furthermore, the new residential homes must be located in the same neighborhood or commune as the property being converted into a short-term rental.
2. Temporary Authorizations:
   - Special provisions are available for properties rented out to students for nine months of the year and as tourist accommodations for the remaining three months.
   - These authorizations are granted for one year and are non-transferable.
3. Primary Residences:
   - Homeowners renting out their primary residence on a short-term basis are exempt from needing authorization if the rental period does not exceed 120 days per year.
4. Compliance and Penalties:
   - Property owners must comply with all urban planning and health regulations.
   - Violations of the regulations can result in significant fines and legal action, including mandatory reconversion of the property to residential use.

Steps to Obtain Authorization
To convert a property into a short-term rental, the following steps must be taken:
1. Submit a Request:
   - The property owner must submit a detailed application to the local municipality, including plans and proof of property ownership.
2. Provide Compensation Details:
   - The application must include plans for the compensatory housing units and evidence that these units meet all regulatory requirements.
3. Await Approval:
   - The local municipality will review the application and either grant or deny the authorization within a specified period.
4. Adhere to Temporary Use Conditions:
   - For mixed-use properties (student and tourist accommodations), specific conditions must be met, including providing proof of student enrolment.

Impact on Property Rental Opportunities
For those looking to purchase in any of the 24 towns covered by this regulation, it means that careful planning is needed when considering short-term rental opportunities. The requirement for authorization and compensation will add complexity and cost to the process. Even more, there is a lack of commercial spaces to convert into residential homes in these towns. This would require a large investment to be able to purchase and convert the commercial space into long term residential homes and purchase a residential home to authorize as a short-term rental. For those who are looking to rent their primary residence in any of these towns, you are covered by a 120 day (roughly 4 months) per year exception to this regulation. However, it is important to remember these regulations are designed to ensure a balance between tourism and residential needs, ultimately preserving the unique character and liveability of Biarritz and the surrounding 23 towns.

Understanding and complying with these regulations will be essential for any prospective property owner in any of the 24 towns listed above, ensuring both a successful investment balanced by a contribution to the sustainable development of the community.

If you have questions, feel free to contact Nicole at nicole.gaines@liveinbiarritz.com