You have bought a property, for example in United Kingdom or in France, to rent it out on Airbnb or you have spare room in your holiday home or you want to rent out your main residence as one airbnb residence or even your entire property. Then, this is an excellent opportunity as Airbnb hosts to make ends meet or to supplement your main income in the european economic area (eea). Nevertheless, you should know as an Airbnb property host that the extra income you generate is subject to the same tax rate as tax rule for total taxable rental income figure. Therefore, it is important to make a declaration and to fill it in correctly, otherwise you will be in default of the legislation.
How to declare airbnb income?
If you buy an apartment in Paris to rent out on Airbnb.fr, you should be perfectly aware of the rules that apply. You should know that it is exactly the same regarding the declaration of your total rental income for taxes.
Most of the time, the property you make as an Airbnb host available on Airbnb is furnished. In this way, it is perfectly functional for short period rental and for seasonal rental. As a private individual, you become a non-professional furnished renter or LMNP.
Be aware that this status is particularly regulated and that you have many obligations in terms of taxation. For example, you will have to declare all of your rental income, in other words, the various sums that you have received through this short period rental.
But you should know that there are different options available to you in terms of taxation. You can choose the real regime or opt for the regime of industrial and commercial profits. However, this last option is only possible when the gross income does not exceed 72 600 € per calendar year.
How to fill in your Airbnb declaration and in which tax box?
As you have just seen, rental management follows very precise rules. Therefore, it is normal to have questions about how to fill in your council tax return. Should you use box 5nw or 5nd? Are there any other furnished holiday lets or subtleties, a sole trader, furnished holiday letting small businesses that can help you pay council tax and lower it?
These are all legitimate questions you may have.
First of all, the declaration of your income from the Airbnb.fr platform must be done using the complementary declaration of non-salaried professions or the 2042 C form.
However, there are three possibilities to take into consideration.
The first possibility of declaration
Generally, the declaration of property income and other property income is made in its entirety, regardless of the type of short-term rental you have made. Box 5nd should be used as declarant 1, box 5od should be used as declarant 2 and sometimes it will be necessary to fill in box 5pd if you have dependents.
Please note that deducting expenses will not be calculated by you, it is the tax authorities who will determine it in relation to the gross receipts. Therefore, the amount to be declared will be directly included in the annual earned income statement that will be given to you by the Airbnb platform.
Moreover, it will be possible for you to consult this amount at any time by connecting to the platform. The information will then be made available to you from your profile.
The second possibility of declaration
If you carry out your seasonal rental activity as a self-employed entrepreneur making a self assessment tax return, getting a planning permission and paying the utility bills, you will have to opt for paying tax on airbnb income of the taxation of the flat-rate levy at source, i.e. the PFL. This is a special regime that will be attributed to you according to your resources conditions. In this particular case, you will have to fill in the gross receipts, without taking into account the allowance.
So if you are wondering which box to declare your Airbnb total income, you will have to use box 5TB for declarer 1, box 5UB for declarer 2 and box 5vb if you have dependents.
The third reporting option
If the property you are renting as furnished has already been subject to social security contributions, you will have to use other boxes. Specifically on your tax return, box 5nw for the declarant 1, don't forget to fill in box 5ow for the declarant 2 and possibly box 5pw when you have dependents.
From now on, you no longer have to ask yourself whether renting from the Airbnb.fr platform requires a 5nd or 5nw declaration.
What is the most interesting tax regime for short-term Airbnb rentals?
When you use your furnished holiday accomodation on an Airbnb platform, it may be recognized as a classified furnished tourist property. In this case, you should know that the procedures will change, as will the income tax system and tax rules.
Indeed, you will benefit from an increased deduction of 71% compared to the various incomes that you could generate thanks to your rents. This is part of the micro BIC regime, provided that your Airbnb earnings does not exceed €176,200 per year.
Let's take the example of a set of furnished holiday lettings which, in this context, have allowed you to generate €100,000 in annual revenue. In this case, the taxable profit will be 100 000 - 71% = 29 000 euros. If you ever exceed the ceiling of €176,200, you should know that the real tax system will be used.
For the income tax return, it is imperative to complete boxes 5ng, 5og and 5pg if you have dependents. You must therefore use the 2042 C Pro form that you can download directly from the tax site.
When you go to impots.gouv.fr, don't forget to check the box "non-professional furnished rentals" in step number 3, i.e. in the income section. Don't forget that the amount declared is without any deduction, i.e. it corresponds to the gross receipts.
How to get help for the Airbnb income declaration?
If you rent out your buy to let properties on different platforms, unfortunately confusion can reign in your mind. For example, how can a concierge bill be deducted from booking fees? A sometimes complex situation, if you don't know the administrative intricacies.
In this context, UpperKey Concierge will be a prime choice. Indeed, the VAT registered limited company is recognized for its know-how and its seriousness. You benefit from both technical and administrative support.
In other words, you get rid of all the possible constraints concerning the seasonal rental. For example, you will get all the necessary documents for the declaration of your income and as a bonus you are guaranteed to get your rent.
A way to get rid of many constraints and have a much more peaceful mind.
Is it possible to obtain an exemption for Airbnb income?
By practicing seasonal rental, you have the possibility to benefit from a tax exemption from the gross amount. However, it is important that the income generated does not exceed €760 per year. As soon as the sum of your rents exceeds this amount, you have no choice but to declare your income, without any possibility of exemption.
Moreover, the exemption only concerns individuals who rent out their main residence. In any case, it is important to be accompanied to avoid a tax adjustment, so don't forget to consider a collaboration with UpperKey.