Professional furnished lessor

Updated on Friday 22 May 2020

The activity of direct or indirect rental for furnished or intended to be furnished accommodation is implemented on a professional basis, when the following three conditions are met

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The 3 important conditions

  • At least one member of the tax household must be registered in the trade and companies register as a professional rental company;
  • The income from this activity by all members of the tax household must exceed 23,000 euros including VAT per year;
  • These receipts must exceed the professional income of the tax household.

Please note: since January 1, 2017, people who meet the first two conditions - or who fail to be registered with the RCS rent their premises to passing customers who do not elect domicile - must be affiliated with "Security social security for the self-employed" (ex RSI) and pay the corresponding social security contributions.

The main advantages of the professional furnished lessor status

The main advantages of this status are:

  • Taxation in the industrial and commercial profits category, which helps amortize the accommodation, but also the furniture.
  • Allocation of deficits on the total income throughout the year, without any amount limitation.
  • VAT recovery (under certain conditions);
  • Benefiting from the professional capital gains system (under certain conditions);
  • Exclusion of the leased property (considered to be a professional property) of the wealth tax (IFI) field.