Rent without declaring: what are the risks according to your Marseille concierge

What are the risks of renting without declaring, your Marseille concierge tells you everything

France is one of the highest taxed countries in Europe. Taxes and other financial debts are piling up and many investors are wondering how to invest their money while paying as few fees as possible. The desire to take advantage of the seasonal rental is then tempting. Indeed, it has a very high profitability and thus allows owners to generate very interesting additional income over a year. But is it possible to rent without declaring your main or secondary residence? What are the risks for landlords who do not declare their rental? Your conciergerie in Marseille deciphers for you the obligations of French legislation.

Is it possible to rent without declaring

Renting without declaring is illegal. Following the ELAN law of 2018, declaring a rental is a legal obligation that the owner must fulfill. However, it is possible to rent without declaring if you are in the following situation: you are renting part of your main residence which is furnished accommodation. If you respect the ceiling set by the Public Treasury (which is €142 per m2/year), then you are not taxable.

However, it is preferable to declare your income even if you are not taxable on it. Indeed, despite the reputation of the French administration, there are several possibilities to rent without paying tax. Many laws govern real estate rental and offer owners more than attractive tax reductions.

As rental investors, you must declare any rental within your principal residence. You must also, if there are any, show your secondary residences in the registers. Additionally, some cities require landlords to obtain a rental permit. Among them are Bordeaux, Montpellier, Lyon, but also Marseille. It is therefore better to inquire at the town hall to find out about the administrative procedures to be carried out.

What are the risks for owners

Several cases are possible. If the lessor realizes that he has forgotten before the deadline for filing the income declaration, it is possible to modify his declaration online or to send a new declaration (if this is done by mail). If he acts in good faith, the owner will not incur any sanction.

It is also possible to only notice the error after the deadline has passed. In this case, the investor can notify the tax authorities (by mail or via his online messaging service) that he has forgotten to do so. In the event that he warns of himself before July 1, he will also avoid any sanction. However, if he files a corrective declaration after this deadline, the owner will have to pay late payment interest of 0,1% per month, deducted from July 1st.

Any investor caught renting without declaring their property is legally punishable. The legislation provides for different penalties for owners:

If you do not respect the request for a rental permit, you risk a fine of €5 for not having submitted your request for prior authorization. Please note, in the event of a repeat offense within the following three years, this fine will be increased to €000.
If you do not declare your rental income, you are liable to an increase of 10% of your taxable income together with late payment interest of around 0,2%. This penalty may be increased to 40% in the event of deliberate omissions.
If the tax authorities find evidence of proven fraud, the increase in your taxes will be increased to 80%.

The risks incurred are therefore considerable for owners seeking to escape (consciously or not) from taxation on rental income.

Your Marseille concierge helps you with your administrative procedures

The French administration is full of possibilities to help investors in their efforts thanks to tax reductions or bonuses when managing a rental purchase. Your Marseille concierge is able to help you invest in the best possible way, by limiting taxes on your property while increasing your rental income.

YourHostHelper strongly advises against renting without declaring at the risk of exposing yourself to exponential penalties which can cost you dearly. To stay in good standing while reducing your taxes, your Marseille concierge advises you to rent Airbnb. Renting part of your main residence to make your empty rooms profitable will allow you to obtain a pleasant additional income. And if you meet the limits set by the state, all income from this rental will be considered non-taxable.

Several interesting statuses allow you to take advantage of the profitability of seasonal rentals while limiting your costs. Your Marseille concierge advises you to read the articles relating to the BIC, real or LMNP status which can help you depending on your situation. Your rental management agency YourHostHelper and conciergerie in Marseille accompanies you in your efforts and advises you to enable you to make your property profitable thanks to Airbnb rental.

Framed by the ELAN law, the rental of accommodation, whatever it is, requires a declaration to the tax authorities. In the event of omissions on the part of the owners, it is possible to make changes to the tax declarations before July 1 without exposing oneself to penalties. Only, for landlords who fail to declare their rental, the legislation provides for fines of up to an increase of 80% of your taxable income. If you wish to limit your tax costs, your conciergerie of Marseille can assist you in choosing the tax regime best suited to your needs. YourHostHelper advises against renting without declaring your rental income. The State provides you with numerous aids to reduce tax on part of your income which can allow you to remain in good standing while representing an interesting aid for your budget.