A seasonal rental in Cannes is considered a furnished rental. As such, it is subject to a few specific rules, mainly in terms of VAT, and also has its own tax regime.
No VAT for seasonal rentals
As with furnished rentals, seasonal rentals are exempt from VAT. This is why any owner of a property for short-term rental is not authorized to deduct this tax from his purchases. On the other hand, seasonal rental is taxed as part of industrial and commercial profits (BIC). The owner has the choice to choose between the micro-enterprise regime or the real tax regime, depending on his turnover.
Benefit from VAT for seasonal rentals
Although it was previously mentioned that vacation rentals are exempt from VAT, there are always exceptions to the rule. Also, any owner who wishes to benefit from VAT for seasonal rentals, must claim the status of para-hotel service provider. With this in mind, he must include some major conditions in his service:
- The provision of breakfast.
- The provision of a cleaning service for the premises (throughout the rental period and not only at the start and end of the service).
- The supply of household linen.
- The establishment of a reception service (even electronic)
By fulfilling at least three conditions, the owner can apply VAT to his seasonal rental. A solution which can also prove to be favorable if the operating costs of the rental are high.
With the many successive events in Cannes on the sidelines of the Festival in recent months, owners of seasonal rental properties can take the opportunity to offer more and more comprehensive services to tenants, and take advantage of VAT.
