Airbnb taxes: prepare to declare your rental income with the help of your Cannes concierge
The French administration is full of obligations and we all feel a little apprehensive when tax declaration time arrives. If the institutions work to make life easier for thousands of French people by pre-filling their tax sheets, it becomes much less simple when you have a few investments to your credit. Possession of shares, cryptocurrencies or even real estate, you are obliged to refer all of your income to the tax authorities. But how do you declare the income from your seasonal accommodation? Your conciergerie in Cannes helps you with your Airbnb tax declaration.
Do you have to declare your Airbnb income
Yes. Let's not beat around the bush, each income must be mentioned in your tax return. Whether you are a professional host or an individual who has invested in Airbnb rental, you have no choice. Also note that the standard Airbnb reservation platforms are obliged to transmit the data of your rentals to the tax authorities.
Note, however: if you rent one or more rooms in your main home and your income does not exceed €760 per year, then this income is exempt from tax and does not have to be declared.
Which tax system to choose for my tax return
There are several statuses depending on your situation and the income you receive from Airbnb rentals. Professionals and individuals, your Cannes concierge advises you to find out about your rights before declaring your Airbnb taxes.
LMNP status
The LMNP or Non-Professional Furnished Renter status concerns individuals taking advantage of Airbnb rentals to supplement their end of the month. To benefit from this status, you must:
- Rent your main residence as a furnished rental
- Comply with the revenue limit of €23 per year.
By doing this, non-professional landlords can take advantage of attractive tax breaks. Only, if you do not respect the previous conditions or if you are a professional renter, you will have to opt for another more suitable status.
The micro-BIC diet
You can take advantage of the micro-Bic scheme as long as your Airbnb income does not exceed 72 euros over the year. During your Airbnb tax return, you will then benefit from a 600% reduction on all of your rental income. Indeed, the administration automatically takes into account all your ancillary charges such as: management fees, insurance premiums or platform fees.
Note that, for guest rooms and furnished accommodation classified for tourism, the revenue limit is 176 euros for the micro-BIC regime.
The actual diet
This is the most complex system for filing your Airbnb taxes. This is compulsory for all professionals exceeding the ceilings of the micro-Bic scheme. To be in order, you must mention on your declaration, the total sum of the rents collected via the Airbnb platforms. This sum must be net of costs and charges in order to apply the scale corresponding to your situation.
Understanding Airbnb taxes on your rental income
French institutions can prove to be a real headache for anyone new to short-term rentals. How much do you pay for your Airbnb taxes? Your Cannes concierge explains the scales that will be applied to you.
How are these taxes calculated?
If we have told you about the different statuses, it is because the calculation of your Airbnb taxes will depend on the regime to which you belong. As said before, the micro-BIC scheme allows you to benefit from a 50% reduction taking into account your expenses related to seasonal rentals. Here are more precisely the expenses taken into account for your declarations:
- collection of property tax;
- depreciation costs;
- provisions for charges;
- management fees and booking platform fees (3% for Airbnb);
- personnel costs;
- insurance premiums for your accommodation;
- day-to-day management costs (maintenance, troubleshooting, etc.).
As for the actual regime, your rental income will be taxed according to the scale
progressive income tax.
What is the tax rate to apply on your rentals
The income tax rate changes every year. However, here is to give you an idea, the rates for the year 2023 to be applied to income received in 2022:
- Income below €10/year → tax rate: 777%
- For receipts between €10 and €777 → 27%
- If you received between €27 and €478 → 78%
- For amounts between €78 and €570 → 168%
- For all income over €168 → 994%
Added to this is the amount of social security contributions, up to 17,2% of your income.
The tax rates are the same for micro-Bic plans and real plans. Here is a concrete example to calculate your Airbnb tax when you belong to the micro-BIC regime:
“You rent your apartment on Airbnb and recognize €10 in rental income. These must be added to your salary to determine your tax bracket. If you earn €000 per year, you fall into the 20% taxable income bracket.
- Calculation of the allowance: 10 x 000 = €0,5
- Airbnb tax: €5 x 000% = €30
- Addition of social contributions: €5 x 000% = €17,2
The total amount of your taxes on your Airbnb rental income will then be €2”
Some special cases
Classified rentals
Classified furnished tourist accommodation benefits from a reduction of 71%. To do this, you must make a request to the town hall to take advantage of this scheme. You will need to complete form n° 14004*04. Once this is done, you will need to obtain accreditation from an independent organization to be recognized as classified tourist accommodation.
Airbnb “experiences”
Unlike standard Airbnb rentals that are considered industrial and commercial profits, Airbnb “experiences” are recognized as paid services. They depend on different statuses (BIC or BNC). Unlike standard Airbnb rentals, you must report your Airbnb taxes on Part 2042 C PRO of your tax return.
Airbnb concierge services
As a concierge in Cannes, our agency YourHostHelper offers its services to facilitate your declarations. Thus, you can pass the costs of an Airbnb concierge service thanks to the abatements of the micro-BIC scheme. Your rental management agency in Cannes takes care of reception, management of reservations, cleaning costs and communication about your accommodation. We are available at any time to help you in your procedures and to understand the taxation on rental income.
Filing Airbnb taxes is out of the ordinary and has a few pitfalls for any newbie investors. First of all, it is important to choose your status carefully according to your projects and the benefits envisaged. Then, apply the amount corresponding to your tax bracket to find out how much you will be deducted during the summer. Whatever your knowledge of the area, do not hesitate to call on our Cannes concierge service to help you with your rental management.
