Amélie CARBONNAUX ASSOCIE
A furnished accommodation can be rented for use as the tenant's main residence or on a seasonal basis, for occasional customers. What are the advantages? What is the taxation?
Rent as the tenant's primary residence
The furnished rental must be equipped with all the furniture which is required for the housing. The lease must be rounded off for a minimum renewable period of one year (this period is reduced to 9 months for students, without an automatic renewal).
Furnished tourist accommodation rental
Whether it is your main residence or not, you must theoretically declare the accommodation as furnished tourist accommodation with the town hall of the municipality where the latter is located. The rule is the same if you rent rooms at home, including breakfast, (bed and breakfast) for one or more nights to tourists. This declaration is carried out through a specific form, which can be downloaded through the Internet (Cerfa form n°14004*2).
In addition, if the accommodation is located in a municipality with more than 200,000 inhabitants or more than 50,000 inhabitants in a tense zone, or in the inner suburbs of Paris, you need to submit a request for prior authorization, for a change in use with the town hall, so that you can rent it repeatedly for a shorter span of time to tourists. This open sesame is extremely tough to obtain in Paris. The capital city requires that owners transform a commercial space into a home. This declaration must enable you to obtain a number which appears on any rental advertisement. The landlord must check with the municipality where his furnished apartment is located, in order to be aware of the procedures, which apply.
If you go through an intermediary, whether it is a "classic" real estate agent or an Internet platform, you must give him a sworn certificate certifying that you have fulfilled all your obligations, mentioning whether the accommodation is your main residence or not, and duties, where applicable, along with the declaration number. If this is your primary residence, the intermediary will need to ensure that it is not rented for more than 120 days per year. He must keep a count of the number of nights which are occupied and if it exceeds 120 nights per year, the accommodation can no longer be offered for rent until the end of the current year.
LMNP: what taxation?
Whether the activity is carried out on a regular or occasional basis, rents are subject to an income tax in the category of industrial and commercial profits (BIC).
As long as they do not exceed 33,100€ per year, they are taxable under a simplified regime, known as micro-BIC, this means calculating your taxable income by applying a 50% reduction to the amount of the rents which are collected. 15.5% social security contributions are added if your income does not exceed 23,000€ per year.
Beyond this threshold of 23,000€, your activity is considered to be exercised within the professional capacity and therefore you must pay the corresponding social charges (22.7%) just like a micro-entrepreneur.
To ensure greater security, it may be suitable to have the lease drawn up by your notary. In the event of a payment incident for example, the value of this document allows you to go directly to a bailiff without having to first obtain a court decision.