Are you renting a property for short periods through a seasonal rental platform such as Airbnb, Abritel or Booking.com? Be aware that the gains you make are taxable and must therefore be notified to the tax authorities, as part of your tax return. And this from the first euro! And don’t you dare omit them, because the platforms send data about you to the tax authorities every year. This data concerns your identity, your activities on the platforms over the previous year – including your income and the number of bookings – and certain information about your payment methods.
Logically, the property you rent is furnished. In practice, you are therefore considered as a non-professional furnished rental company – as long as your income does not exceed 23,000 euros and they remain lower than the income from your other activities. Then note that the rental of your property is considered a commercial activity, subject to the income tax scale, in the category of industrial and commercial profits (BIC). You therefore do not have to declare your receipts as property income.
Let’s start with the exemption cases. Indeed, your income is not taxable if it comes from the rental of part of your main residence, as long as it does not exceed 760 euros per year. For this, it is obviously necessary that the rented room(s) do not constitute the main dwelling of the tenant and that the rental remains occasional. Once your earnings exceed this threshold, they are fully taxable.
Second case of exemption: for usual rentals of part of your main residence. Your income is also not taxable if you rent one or more rooms to a seasonal employee and the rent charged is reasonable. To assess whether the rental price is reasonable, the administration publishes two ceilings depending on the region, reassessed each year, below which the rent is deemed reasonable. For 2022, these annual rent ceilings per square meter of living space, charges not included, are set at 192 euros in Ile-de-France and 142 euros in other regions.
Two tax regimes
Apart from these two situations, your income from the seasonal furnished rental of a property is taxable. If your income is less than 72,600 euros per year (176,200 euros for classified tourist accommodation and guest rooms), you have the choice between two tax regimes. The first, called “micro-BIC”, is the simplest and the most suitable for occasional activities. In practice, all you have to do is report your total net revenue, plus platform fees and cleaning fees (if applicable). Everything must be carried on the form 2042 C pro declaration, in square 5 ND. The tax authorities will then apply a fixed abatement of 50% on your earnings to take into account various charges and will conventionally submit the remaining 50% to the progressive scale of income tax as well as social security contributions. This means that only half of your income enters into the calculation of your tax. Note that, as the minimum allowance is 305 euros, if your income does not exceed this sum, you will not even pay any tax. But you still have to declare them.
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Second option: the “real” regime. You are even obligatorily subject to it if your income exceeds 72,600 euros per year. This system is more complex, but it allows you to optimize your taxation by deducting a certain number of charges for their actual amount. In this case, you must report the amount of your receipts on the professional declaration 2031-SD and deduct all of your expenses by carrying them on the same form. The amounts will then be taxed according to the progressive scale of income tax and subject to social security contributions.
In summary, the actual regime is beneficial to you if the amount of your charges is greater than the amount corresponding to the 50% reduction in the micro BIC. If this is not the case, prefer the simplified regime. Finally, last tip: if you are a user of the Airbnb platform, you can access the summary of your transactions and your gross income in the “Performance” tab of your host account. This will simplify your task when fulfilling your tax obligations.
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Income Tax: How to Report Your Airbnb Earnings