Rental investment and tourist tax: an update on the situation in Toulouse

Do you own a rental property in the city of Toulouse? If you missed the latest decisions made by the Metropolitan Council at the end of July, it is time for an update regarding the tourist tax. To support tourism stakeholders, an exemption was voted on as part of the finance bill. Your Airbnb property management service, Welkeys, is here to help you make sense of it all.

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What is the tourist tax?

The tourist tax is a French tax that can be charged by municipalities to vacationers staying in their territory for a fee. It allows municipalities to fund expenses related to tourism.

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The amount is set by the municipalities and is due per person, per night. It generally amounts to a maximum of 4 euros per night. The calculation also takes into account the type of accommodation where the traveler is staying.

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Through a simple search, the government now allows you to find tourist tax rates by municipality or department.

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As for the collection process, it is handled by the accommodation provider. The vacationer pays the tourist tax at the time of booking, and it is then up to the host (individual or professional) to remit it to the municipality. The tax amount is therefore added to the price of the accommodation. However, some individuals are exempt from paying the tourist tax. This is particularly the case for minors, seasonal workers employed in the municipality, or those receiving temporary or emergency housing.

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Tourist tax in Toulouse in 2023

Just as other French cities have launched initiatives to relieve tourism stakeholders in France, Toulouse Métropole has voted for an exemption from the tourist tax to provide its own support. A decision that directly affects all overnight stays from July 6 to December 31, 2020, regardless of the accommodation category. Throughout this period, hosts must suspend the collection of the tourist tax from their guests.

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The Quimper Bretagne Occidentale (QBO) urban area had already made a similar decision to “relieve the cash flow of hospitality professionals”.

Furthermore, in addition to this tourist tax, which amounts to 5% of the nightly rate per person, a 10% departmental tax has been added since January 1, 2023. This increase in the tourist tax is part of the effort to strengthen regulations regarding tourist rentals in the city of Toulouse.

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Tax collection at Welkeys

When you use Welkeys services to rent your property, the collection process varies depending on the platform travelers use to book their stay. If they book through Airbnb or Booking, please note that these platforms collect the tax directly and then remit it to the relevant municipality or urban area.

However, if the booking is made in another way (via the Welkeys Club for example), our team collects the tax before remitting it to our property owner clients, who must then declare the amount collected and handle the payment themselves. Declarations must be filed quarterly.