Since tax rules vary depending on the revenue generated (amount of rental income received), here is a summary of the tax regulations that apply to most property owners.
On your tax return, you will have 2 choices:
A/ The "micro - BIC" scheme
The automatic scheme is the Micro Entreprise scheme for non-professional industrial and commercial profits. (annual income is less than €72,600 for ordinary furnished accommodation or €176,200 for classified furnished accommodation).
The owner will simply have to declare his gross income on lines 5ND (for unclassified furnished accommodation) or 5NG (for classified furnished accommodation) of the 2042 C PRO supplementary income tax return.
This gross income will be subject to an allowance of 50% or 71%. The 71% allowance is only available for furnished tourist accommodation, i.e. classified furnished accommodation. For just €72, the Maison des Propriétaires is authorised to carry out inspections for classification as a furnished tourist accommodation. Contact us for more information.
IMPORTANT : If your furnished accommodation is classified, remember to check on your tax return that you have completed box 5NG (and not 5ND); otherwise you will only benefit from the 50% allowance!
Once the allowance has been applied, the remaining profit will be added to your other income and taxed at the average rate for your tax bracket.
The landlord is obliged to keep a simple record of expenditure and income, which may be requested.
B/ The Simplified Real Estate Regime
It is possible to opt for another tax system, the Simplified Real Income System (Régime Réel Simplifié Bénéfices Industriels et Commerciaux non professionnels).
This option requires you to keep accounts, producing an income statement and a balance sheet (2031 return and 2033 schedules).
This option allows you to deduct actual costs, as well as interest on loans and depreciation (on the value of the property, work carried out, equipment, furniture, etc.). This option is recommended for renovation projects.
Given the value of the property in relation to the rents received, this often results in a deficit being generated, and therefore no tax being paid on this income.
This tax solution may seem cumbersome because of the administrative constraints involved, but it can represent a significant tax saving. We recommend that you seek the advice of a professional tax advisor.
• Property tax as the owner of the property
• Council tax is payable by people who own property in the Commune.
• The cotisation foncière des entreprises (CFE) is a local tax payable by owners of furnished accommodation, which is not linked to income.
Pursuant to article 1478 of the General Tax Code, the Cotisation foncière des Entreprises is assessed in accordance with the situation on 1st January of the tax year.
Classified furnished accommodation is exempt from CFE.
To have your property classified, contact us on maisondesproprietaires@lesarcs.com.
NOTE: the situation on 1 January of the tax year is decisive.
A classification issued after 1 January 2021 will take effect for the 2022 CFE.
A classification issued on 31.12.2020 will take effect for the 2021 CFE.
• Tax for household waste
• TV licence fee
• Visitor's tax: insofar as your tenants pay it to you, this is not a tax that you are responsible for, but you are obliged to collect it and pay it back. For this tax, which contributes to the economic development of the resort, you are simply the collector. It's a "win/win" principle to maintain the virtuous circle of quality tourism.
