Do you want to rent out your home for a holiday? Our HelloBnb concierge service guides you through your tax return.
Tax glossary of the rental of furnished tourist accommodation
Professional Furnished Renter (LMP)
Renter meeting the three following conditions:
His rental income is greater than 23 000€.
His income is higher than the other income of the tax household.
The renter is registered with the RCS (Registre du Commerce et des Sociétés)1. This status is not available to renters of principal residences.
Non-professional furnished rental (LMNP)
One of the conditions mentioned above is not met by the lessor.
B.I.C.Industrial and Commercial Profits
Tax regime applying to the income from the rents generated by your furnished rental. Two possible options:
Micro-BIC: The rental income benefits from a 50% deduction before taxes, or a 71% deduction if the furnished accommodation is classified.
Simplified real: all expenses are deducted from the rental income before taxes, including depreciation on the shell, facades, real estate and furniture, which leads to little or no taxable income. Concierge services for seasonal rentals are also deductible.
Main residence
Furnished accommodation effectively occupied at least eight months of the year by its owner. Therefore, the maximum rental period is 120 days per year.
Secondary residence
Which is not a principal residence. There is no limitation on the length of the yearly rental period, but a declaration to the prefecture is required. (See our article on seasonal rental legislation)
Furnished tourist accommodation
All furnished accommodations rented on a seasonal basis are subject to the furnished tourist accommodation regime. The rental period cannot exceed 90 consecutive days per tenant.
Classified furnished accommodation
Certified furnished accommodation, having received a certain number of stars testifying to its quality. Classified furnished accommodation benefits from an advantageous tax system. More information on our article on classified properties.
Renting out a primary or secondary residence as a non-professional furnished rental property (LMNP)
If your rental income is less than 23 000€ :
You have the option of choosing between the micro-BIC tax regime and the real regime. Please refer to the glossary for more details on what this means for your taxes.
You are not subject to social security contributions (RSI or general regime).
If your rental income is between 23 000€ and 33 100€ :
You have the option of choosing between the micro-BIC tax regime and the real (simplified) regime.
You are subject to social security contributions (RSI or general scheme). Minimum contribution of 900€/year (tax deductible). This is accompanied by the validation of quarters for retirement.
If your rental income exceeds 33 100€:
The tax system imposed is the real system.
You are subject to social security contributions (RSI or general scheme). Minimum contribution of 900€/year (tax deductible). This is accompanied by the validation of quarters for retirement.
Renting out a second home or a furnished apartment exclusively for rental investment as a professional furnished renter (LMP)
You are therefore in the case where your rental income from your rents is higher than 23 000€ and the other income of your tax household (see our glossary for the definition of the different statuses).
The tax system imposed is the real system.
You are subject to social security contributions (RSI or general scheme). Minimum contribution of 900€/year (tax deductible). This is accompanied by the validation of quarters for retirement.
There is also an additional tax for which you may be liable: the Cotisation Foncière d’Entreprise (CFE). It has replaced the business tax and applies to the renters of furnished accommodation that is not their personal residence (property dedicated exclusively to rental investment). More information here.
Seasonal rental and tourist tax
You are still liable for the tourist tax if you are a landlord renting out your personal dwelling (primary or secondary residence).
The tourist tax can be collected directly from your travelers and then transferred to the town hall by the rental websites, depending on their partnerships with the local authorities.
Airbnb takes care of paying the tourist tax in several French cities. More info here.
Reminders on the legislation governing the activity of seasonal rental
The legal procedures will be different depending on whether you want to rent out your main residence or your second home.
Read also: Regulation of the seasonal rental
1 – It can happen that the trade register refuses the RCS certification; in this case the refusal statement is worth registering to obtain the LMP status.
In any case, HelloBnb recommends that you do your own research before starting any vacation rental process – this article is not intended as legal and/or tax advice. As the laws concerning vacation rentals change quickly, our articles are not always updated accordingly. We therefore recommend that you check that the laws announced by an article are still in force before you appropriate them. You can find more information on the regulation of vacation rentals on the Airbnb Citizen platform.