Rent an apartment on Airbnb is an attractive source of income, but do you know the tax obligations which apply? With the rise of seasonal rental, many owners are turning to Airbnb platforms to make their investment profitable. And with good reason! However, like everything real estate project, you need to look into the administrative rules of the short term rental. Find out everything you need to know about Airbnb and taxes applicable to your rental income with your YourHostHelper agency in Nîmes.
Tax obligations for Airbnb rentals
Different taxes are applicable to real estate investments. Depending on their location and status, here are the expenses to plan for a short-term rental.
Declaration of seasonal rental income
In France, income generated in Airbnb is considered either as property income or industrial and commercial profits (BIC).
If you rent furnished accommodation, you must declare this income in the BIC category. You then have the choice between two tax regimes.
- The micro-BIC diet: this is a simplified regime for rental income below €72 per year. This allows you to benefit from a flat rate reduction of 600% on your rental income to cover your expenses.
- The actual regime: If your rental income exceeds the micro-BIC threshold or if you prefer to deduct your real expenses (work, loan interest, management fees, etc.), the real regime is for you.
Failing to report or underreport your Airbnb income will subject you to severe penalties. The tax authorities can carry out an adjustment, impose penalties on you, and apply late payment interest.
In the most serious cases, you may be prosecuted for tax fraud. Enough to make you want to make your statements.
Specific obligations for international income
If your Airbnb property is located abroad, you must also declare the income received in France.
To avoid double taxation, find out about applicable international tax conventions. These determine the country which is entitled to tax the recovered income.
We advise you to consult a tax expert to ensure that you comply with the reporting obligations of the two countries concerned, without paying double.
Airbnb and taxes: interesting levers to make your rental profitable
There are several methods to depreciate your property and reduce taxes on Airbnb.
Deduct expenses and work to reduce your taxes
The real regime allows you to deduct numerous charges from the rental income you receive:
- Loan interest
- Rental management fees
- The insurance
- Maintenance and repair expenses
- Property tax
Reduce the amount of your taxes by accounting for the investments made for your home. Renovation or energy improvement work allows you to benefit from additional tax credits or tax deductions. So, enjoy!
Use local tax schemes to improve your profitability
Some regions or cities offer specific tax schemes to encourage rental investment in their region.
You will thus be able to benefit from exemptions on property tax for renovated housing or for housing located in rural revitalization zones. This type of device can tip the scales and make real estate investments much more profitable.
Find out about revitalization areas to get support in your area and maximize the profitability of your Airbnb rental.
Choose the most advantageous tax regime for your profile
The choice between the micro-BIC plan and the real plan depends on your owner profile and your objectives. THE cash flow of your investment will directly depend on your taxation.
The micro-BIC regime is generally more advantageous for small owners with few expenses. However, if you have to carry out important work, the real regime may be more attractive.
An accountant or tax advisor will help you choose the best option according to your personal situation.
Special case: Non-professional furnished rentals (LMNP)
Eligibility criteria for LMNP status
To be eligible for Non-Professional Furnished Rental (LMNP) status, you must:
- not exceed a certain rental income threshold
- not be registered in the Trade and Companies Register (RCS) as a professional rental company.
This status offers very attractive tax advantages, particularly on property depreciation. With this status, you will be able to benefit from a flat-rate reduction of up to 50% depending on your plan.
Discover our YourHostHelper article dedicated to LMNP status to find out more about this type of taxation.
Compatibility of LMNP status with other tax systems
Optimizing Airbnb and your taxes also involves making your status compatible with other tax systems. Depending on your project, government aid such as the Pinel law or the Censi-Bouvard system can be fiscally beneficial.
Warning: even if it is possible to combine the advantages of several devices, do not let yourself be fooled. Run short and long term simulations to choose the best option for your project.
Airbnb obligations and local taxes
Understanding the tourist tax
The tourist tax is a contribution paid by travelers and collected by the owner. It is then donated to the municipality. The amount of this tax varies depending on the category of accommodation as well as the municipality where it is located.
Local regulations on short-term locations
Large cities like Paris, Lyon and Bordeaux often have specific regulations for seasonal rentals. This may concern declaration obligations at town hall, a change of use to rent on Airbnb, but also a limited number of rental days per year.
In general, find out about local regulations before purchasing a rental property. Also be aware that controls in some regions are much stricter due to the impact of seasonal rentals on the area's real estate market.
The city of Nîmes is one of those which set up the license to rent. Do not hesitate to contact your Nîmes concierge to find out more about Airbnb obligations and taxes put in place by the city.
Airbnb income taxation and its taxes can catch rental investors off guard. To avoid unpleasant surprises, find out about the different existing statuses and regimes. Define your short, medium and long term project to choose the best tax plan and make your rental purchase profitable. Remember to take into account local taxes and obligations to avoid penalties from your city. Boost your performance with seasonal rentals and the services of your Airbnb YourHostHelper concierge service in Nîmes. We welcome you to our agency to support you in all your real estate procedures.
