The Airbnb seasonal rental supposes the contribution of new financial income for the owners. The income of tax households being strongly regulated by law, rental income must be declared. This declaration will directly depend on the status chosen for the Airbnb rental. The French legal framework offers owners many solutions, all of which may be suitable for one or other of the situations. This article is here to help you see more clearly in the choice of the status to adopt to proceed with the rental of a property for seasonal rental. That being said, we strongly recommend that you consult an accountant who can give you the best recommendations for your specific situation.
Furnished rental in your own name for your Airbnb rentals:
Furnished rental in your own name presupposes belonging to one or other of these statuses: LMP (Professional Furnished Rental Company) or LMNP (Non-Professional Furnished Rental Company). The main distinction will be made through the rental income received in the year. In this way :
– Non-Professional Furnished Rental must not exceed €23000 including tax / year or account for more than 50% of the professional income of the tax household
The LMNP presupposes membership of one of the following two regimes: The “micro-BIC” regime or the “real” regime. You can benefit from the Micro-BIC scheme if your gross income does not exceed €72 and entitles you to a 600% reduction on your gross income.
– Professional Furnished Rental will be the opposite: above €23000 TCC / year and representing more than 50% of the professional income of the tax household while requesting registration in the RCS (Register of Commerce and Companies)
During your declarations on the real regime, you declare your income received net of costs and charges and are taxed at the progressive scale of income tax.
The SCI: Rent on Airbnb with a Civil Real Estate Company
Many owners with an SCI (Société Civile Immobilière) consider their seasonal rentals through their SCI. However, a subtlety comes into play: the furnished rental is a commercial act while the object of the SCI is civil. In this sense, it may be necessary to modify the activity of the company concerned and to switch to the corporate tax system (IS).
The conditions for renting on Airbnb via a Société Civile Immobilière (SCI):
– Income from seasonal furnished rentals must account for less than 10% of the company's annual turnover.
– Furnished rentals must not be the main activity and therefore not have a recurring nature over several years.
– Otherwise (significant income and recurrence of activity), the company must waive income tax (IR) and switch to the corporate tax system (IS)
The SARL: Rent on Airbnb with a family SARL
The case of a family renting out a property for seasonal rental is not one of the most frequent but is nevertheless represented. The SARL is indeed a company status allowing Airbnb rental. This statute may have many advantages for each of the people involved, provided that the statutes are drafted in a very conscientious manner and in strict compliance with the regulations in force.
The advantages of renting on Airbnb with an LLC:
– From a tax point of view, it is possible to come under the partnership regime
– The progressive donation to the children allows a great tax optimization
– The SARL protects parents and children financially
Do taxes have access to my Airbnb rental income?
The thorny underlying issue is, of course, for many owners of Airbnb rentals, minimizing taxes. The temptation arises when investing not to declare rental income.
“However, it is dangerous to hide this information from the tax authorities in the hope of saving money. For several years now, platforms like Airbnb have been required to report information to the administration. Verification is therefore easy for the authorities and, with the growing notoriety of this type of rental, is closely monitored by taxes. » Explains Christine, director of our Concierge in Lège Cap Ferret
At present, owners who fail to declare their rental income in their annual declaration risk an adjustment over 3 years plus 10% and late payment interest of 0.2% per month. this can represent a tidy sum for those who rent their property regularly and will have to pay this sum to the taxes following a false declaration.
