Para-Hotel Services: The Killer Argument to Sign Owners (and Help Them Recover 20% VAT)

The concierge market is saturated, and “a better occupancy rate” is no longer enough to convince an investor. What gets signatures today is net profitability, and an underused tax lever can boost it instantly: para-hotel services (para-hôtellerie, a VAT regime for rentals that include hotel-like services). It’s a powerful argument when you grow your concierge business and sign more mandates.

Under certain conditions, this regime lets an owner recover 20% VAT on the purchase price of a new property or on the cost of renovation work. On a €300,000 project, that’s €60,000 in cash recovered. Few concierge businesses offer it because the accounting mechanics are intimidating. Here’s how to make it safe.

The “3 of 4” Rule: What Does Being a Para-Hotel Operator Mean?

Unlike a standard furnished rental under LMNP (France’s non-professional furnished rental tax status), where you simply rent walls and furniture, para-hotel services mean offering a service close to a hotel’s. To be eligible and recover VAT, the owner (through your concierge business) must have the means to provide all of their guests with at least 3 of the following 4 services, according to the tax authority’s guidance:

1. Breakfast (served on site or delivered).
2. Regular cleaning of the premises (not only at the end of a stay).
3. Linen supply (sheets, towels), replaced during the stay.
4. Guest reception (in person or electronic).

Important: the tax authority doesn’t require every guest to actually use these services, but that the provider genuinely has the means to supply them to everyone, and that the offer can be demonstrated: signage on the premises, a welcome booklet, written exchanges with the guest.

The Math That Gets Mandates Signed

Picture an investor who just bought a unit to fully renovate for short-term rental:

• Purchase price: €200,000
• Renovation + furnishing: €100,000 incl. VAT

Under standard LMNP, the real cost of the work stays €100,000. Structured as para-hotel services (subject to VAT), the owner can claim a refund of the VAT on the work.

Immediate gain: €16,666 of VAT recovered by the owner.

If they buy new (off-plan, known as VEFA), they recover 20% of the apartment’s total price. On a €250,000 property, that’s €50,000 back in their pocket.

Why So Few Concierge Businesses Dare to Do It

If it’s so attractive, why do so few concierge businesses try it? Because on the accounting side, it’s a real headache without the right tooling. For the tax authority to approve the VAT recovery, you need total transparency on cash flows:

• Is the owner really receiving the gross revenue?
• Are the services (cleaning, linen) clearly separate from the rent?
• Who collects the VAT on the nightly stays and on the services?

Most concierge businesses collect everything into their own account, take their commission, and pay out the rest. If the flows are mixed, you can’t prove who paid what, and that’s the surest way to get audited and reassessed.

How Unlocker Makes Para-Hotel Services Safer

To manage para-hotel services without becoming an accountant, you need fine-grained traceability of financial flows. Unlocker automates that complexity with split payment:

1. Separation at the source: the guest pays €1,000. Unlocker automatically distinguishes what belongs to the nightly stay and what belongs to cleaning or linen fees.
2. Fund routing: the “rent” share goes straight to the owner’s account, the “service” share to you or the provider.
3. Tax transparency: every line is clear. The owner gets a clean statement, and their accountant has the figures needed to declare the VAT collected and justify the recovery on the work.

Take It to the Next Level

Para-hotel services aren’t reserved for big hotel groups: it’s a tax niche within reach of concierge businesses that want to work with profitable investors, as long as you document the 3 services and keep the flows cleanly separated.

Ready to structure your offers to attract big investors? See how Unlocker secures your cash flows.

Related reading

• How to Get Paid Automatically as a Concierge Business
• Owner Experience: Retaining the Owners of Your Concierge Business
• Income Property: Scale Your Concierge Business Without Multiplying Owners