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Airbnb and Taxes: How Does it Work?

If you rent a property, you should know that you will be subject to an Airbnb tax regime. The income received must imperatively be declared to the tax authorities, otherwise you will be in default of the legislation. The declaration is made on your income tax and if you don't know how to proceed, don't hesitate to ask for assistance.


How do I file an Airbnb tax return?

The majority of the accommodations available on the Airbnb.fr platform are furnished properties. Therefore, they are directly functional for short-term rentals. As a private individual, it is imperative to adopt the status of non-professional furnished renter or LMNP.


You need to make sure that your Airbnb taxes are reported correctly.

However, it is important to know that this is a status that benefits from very precise regulations in terms of taxation. That is why it is important to declare all your income to the tax department. But there are different options available to you with a different tax regime in relation to your income.


To make it simple, you can choose the real regime or the regime of commercial industrial profits.


How does the real regime work for the taxation of Airbnb income?

If you have chosen the real regime, you must declare the income generated by the seasonal rental on your tax return. To do this, you just need to indicate the total amount of rent you have received. Please note that the amount declared must be net of expenses and without any charges.


Concerning the tax scale, it will be progressive in relation to the income and therefore subject to social levies. For more information, do not hesitate to carry out a tax simulation in France from the governmental website.


How does the system of commercial industrial profits work for the taxation of Airbnb income?

When the income you generate from the platform does not exceed €72,600, you have the option of opting for the commercial industrial profits regime.


The taxation of furnished rentals then benefits from a greatly simplified tax system and a 50% deduction for expenses related to seasonal rentals. Nevertheless, it is necessary to know that a minimal deduction is then fixed at 305 €. If your income on the platform has not exceeded this ceiling, you benefit from a tax exemption.


Regardless of the tax system you adopt, the declaration of Airbnb income is made at the time of the income tax return, i.e. in the spring and every year. This means that you need to be familiar with the rules of seasonal rental in order to avoid finding yourself in breach of the law.


Airbnb taxes in France, which calculation method ?

The calculation of the tax on Airbnb income depends directly on the tax system chosen.

For example, if you generate income of more than €72,600 per year, you automatically switch to the real tax system. In this case, taxation is based on a progressive scale for income tax.


For the BIC regime, the declaration is made on the gross income and the taxman will apply a 50% deduction to the charges and expenses that you have incurred on the seasonal rental.


Some fees are tax-free.

It is therefore important to understand which charges and expenses can be tax exempted. These are essentially property tax, management fees, depreciation, the costs of the seasonal rental platform, provisions for charges, insurance premiums, personnel costs as well as routine management such as repairs and maintenance.


Where to declare your Airbnb taxes?

Whether it is for the taxation of your main residence or the taxation of your second home, the declaration is systematically made in a similar way, i.e. on your tax return.


To do so, you must go to the heading "income from non-professional furnished rentals". Box 5ND must be filled in for the declarant 1 and box 5OD for the declarant 2.


As soon as the tax return campaign starts, you will be systematically informed by mail or e-mail. If you choose the electronic version, you must connect to the website impôts.gouv.fr. From there, you can access your main tax return as well as the attached forms.


It will be useful to fill in the 2042-C-Pro form when you benefit from a minimum deduction of 305 €.


If you have chosen the real tax system, you will also need to complete the Cerfa 20/31 D.


Since 2020, a new obligation forces the Airbnb.fr platform to automatically transmit all income received by people with a seasonal rental. Therefore, it is useless to hide the income you have received, because in case of tax audit, you will be in default.


Not declaring your Airbnb income will result in sanctions, because in the eyes of the tax authorities it is a case of fraud. However, if it is an oversight on your part, you can inform the tax authorities at any time within the framework of the right to error.


Is there a difference in taxation between a primary residence and a secondary residence?

The tax authorities define a principal residence as the place where you live at least eight months a year. When you receive rental income of up to €760 per year, you are exempt from paying income tax.


Therefore, it is impossible to rent your main residence for more than four months of the year. However, you are not obliged to respect this limit for a second home. But, you are obviously subject to income tax according to the different conditions defined above.


Your taxes depend on the type of property you own.

Why choose an Airbnb concierge?

If you are not comfortable with the various tax issues, you can get help from an Airbnb concierge. This is the case with the company Upperkey, which is known as a specialist in the field. Not only will your tax returns no longer be a worry, but you'll have tailor-made support to make the most of your vacation rental. In fact, Upperkey offers a turnkey service, which means that you can delegate the entire management of your seasonal rental property.


No need to worry about technical or administrative issues or to manage the publication of an ad and the reception of tenants, the concierge service takes care of everything.