Seasonal rental has been booming for a few years and more and more individuals are taking advantage of it to increase their income. The practice is, however, increasingly monitored by the tax authorities, which keep an eye on tax returns. Our Aix-en-Provence concierge and its director, Joël Chouraqui, will explain to you how to declare your AirBNB income in the best possible way in order to avoid the slightest problem with the administration.
What taxation for seasonal rentals?
If you are a host on AirBNB or another platform, you receive rental income. And these are taxable. The taxation of earnings from AirBNB is done under the LMNP regime, that is to say "non-professional furnished rental company". All income from seasonal rentals is taxable and the AirBNB platform also communicates to the tax authorities each year the income received by users of the platform. Thus, if you have rented your accommodation at least once, your income will therefore be transmitted by AirBNB, a mandatory rule since 2020.
By renting on AirBNB, you therefore accept taxation of the income generated, which is mandatory. But how do you know your total annual AirBNB revenue? It's very simple: each year in January, the American firm sends you a summary of the gross income received. It will also remind you that it must be included in your future tax return. You will also find the amount of your income on your personal AirBNB space to then make a simulation. “Once the simulation has been carried out, you will then have to include your income as “BIC” (industrial and commercial profits) in your tax return, explains Joël Chouraqui, director of our concierge service in Aix-en-Provence.
What tax regime for AirBNB income?
The micro BIC diet
The micro BIC diet is the simplest. It concerns the vast majority of individuals who rent their furnished tourist accommodation. AirBNB income will be declared as rental income (non-professional furnished rental). The taxation will relate to only 50% of this income. There is therefore an automatic fee allowance of 50%. The scale of income tax and social security contributions will then be applied. The scales of income tax and social security contributions are then applied. As the amount of the allowance amounts to a minimum of 305 euros, you are not taxable if your AirBNB income is less than this amount.
Actual plan
The actual plan (basic or optional) is more complex. It mainly concerns professional rental companies. It makes it possible to deduct all of the expenses paid, instead of the 50% reduction in the micro BIC. If you are basic in micro BIC, you can opt for the real regime if it is more profitable for you (if your expenses exceed 50% of your AirBNB income). “Finally, be aware that if you receive more than 77 euros in annual rental income, explains Joël Chouraqui, director of our Aix-en-Provence concierge service, you will automatically be on the real regime”.
The case of the principal residence
If you rent one or more rooms of your main residence (for example a house in which you have fitted out a small studio), then you find yourself in a special case. Indeed, the rental of your main residence is not taxable below an annual rental income of 760 euros. "You are also concerned if you are a bed and breakfast operator", specifies Joël Chouraqui, director of our concierge service in Aix-en-Provence. On the other hand, if your AirBNB income exceeds the minimum threshold, then you are subject to tax and you will have to declare your income.
Other special cases
There are other special cases that can inherit a different regime. First, the classified furnished accommodation scheme, which allows you to benefit from a reduction of 71% instead of 50%, and sees its ceiling raised to 188 euros. However, you must first submit a request to your town hall and then to an organization approved by the State, which must then validate it and accredit you. The bed and breakfast regime is also subject to numerous conditions and it is not enough to rent a room and serve breakfast to be considered as a bed and breakfast rental company.
How to include AirBNB income in the tax return?
The tax return is done each year, in the spring. If you receive income from AirBNB or other vacation rental platforms, you must include them in your tax return. This will also be the case for all future years during which you put your property up for seasonal rental. This AirBNB income must be reported as “non-professional furnished rental” income. Online, you will have to select the line “income from non-professional furnished rentals” then declare your micro BIC income on line 5ND (furnished rental). If you are making a paper declaration, you will need to complete form 2042 C pro.
The taxation of AirBNB income is measured according to the income tax scale for the actual regime. The percentage therefore depends on your tax bracket as you can see in the image below. It will be necessary to add to this amount the social contributions, which amount to 17,2%. Concerning owners who have chosen the micro BIC scheme, they benefit from a 50% reduction on the gross amount declared for tax. "The calculation seems complex, but you have to take the time to sit down and fill out your declaration properly," explains Joël Chouraqui, from our Aix-en-Provence concierge.
What are the risks of not declaring your AirBNB income?
Do not declare your income from your seasonal rentals, but this is strongly discouraged. First of all, the tax services are very attentive to rental income and it should not be forgotten that AirBNB already sends them the amount of your income at the end of the year. The tax authorities are therefore already informed and not declaring your AirBNB income could be a real problem for you. “It is very important to declare your rental income, warns Joël Chouraqui, director of our concierge service in Aix-en-Provence. In the event of non-declaration, the penalties are numerous and they can be heavy”.
Indeed, there is no shortage of penalties in the event of non-compliance with the obligation to declare your AirBNB income. The main risk is that of tax audits. The administration has 3 years from the date of the offense to make a correction. If the violation is proven, then you risk having to pay penalties with an increase of 10%, in addition to late payment interest of 0,2% per month. "Not declaring your rental income can have serious consequences, warns Joël Chouraqui, director of our concierge agency in Aix-en-Provence. It is better to avoid hiding anything from the tax authorities, whether it is about seasonal rentals or any other source of household income”.
It is therefore very important to know everything to complete your tax return in the best possible way. This can save you trouble like a tax adjustment, but also save you money if you made mistakes before. However, if you really have any doubts when filling out your declaration, do not hesitate to ask for help, you will always find someone who will be able to advise you. The tax office of your city, for example, can be reached by phone and will direct you, but you can also find accountants online ready to help anyone who needs it for free.
