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Complete Guide to Filing Airbnb Tax Reports: Tips and Requirements

Updated: May 9

You have decided to start seasonal rental, but very quickly you will be confronted with a first emblematic. That is to declare your income generated through seasonal rental. Different possibilities are available to you, but it is important not to forget your declarations, otherwise you will be subject to a tax adjustment.

If you have difficulties to fill in your declarations concerning the rental incomes, you always have the possibility to be assisted by a professional.

Indicating the option of seeking assistance for tax declarations
At the end of each fiscal year you need to declare your revenue.

What Airbnb income to declare to the taxes?

At the moment, your first concern is to know what Airbnb income to declare. You should know that the majority of the accommodations available on the Airbnb platform are furnished. This way, the accommodation remains perfectly functional for short term tenants such as for one night.

Therefore, you must adopt the status of non-professional furnished rental, i.e. LMNP. Be careful, this status only concerns a rental that is carried out as a private individual. But with this status, there are obligations that you cannot ignore, especially in terms of taxation.

In order to be legal, Airbnb taxation means that you have to declare all your income, even if you only rented for one night. Moreover, it is impossible to bypass the 90-day rule. That is, you can't rent out a property considered a primary residence for more than 90 days in a full year.

So to know how to declare your Airbnb income, you should know that several options are possible and it's up to you to define the most interesting tax system in relation to your objectives and to your income. The first option is to opt for the actual tax system or for the industrial and commercial profits system.

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What is the declaration of rental income on Airbnb with the real regime

The first option available to you is to switch to the real regime. So, when you are under this regime, you must indicate on your income tax the totality of the rents that you have received for your seasonal rental. This corresponds to both the Airbnb platform, but also if you went through other rental sites.

Concerning the amount to be reported, it must be net of charges and fees. Then, the taxes will automatically calculate the social deductions according to a progressive scale. You only have to report the concerned indications, without forgetting the slightest penny.

Indicating the option of switching to the real regime for accurate income reporting
Consider switching to the real regime for accurate tax reporting of rental income.

How the BIC regime works for seasonal rental income

The second possibility is to choose the BIC regime. However, a first condition applies concerning the amount of income. You must add the Airbnb rental income of your main residence and possibly the Airbnb rental income of your secondary residence. If the total of both exceeds 72 600 €, you are obliged to switch to the real system.

Otherwise, the industrial and commercial profits regime applies.

Automatically, you have an allowance of 50% which applies both to the expenses and to the costs. The minimum deduction is 305 €. So, if your income is below this threshold, you benefit from an exemption. However, you must report the amounts generated and it will be directly the taxes that will calculate this exemption. The slightest oversight on your part exposes you to financial and administrative penalties.

Everything you need to know about Airbnb taxes and their calculation

How to declare Airbnb income is a concern for many people. It is necessary to have some knowledge of taxation and to use the right calculation method. Regarding the amount of tax, it will be directly dependent on your regime.

As seen previously, there are some disparities between the real system and the system of industrial and commercial income.

It is the taxman who automatically calculates the allowance when you are with the micro BIC regime. This deduction is then 50% and it concerns all the charges and expenses that you may have incurred concerning this rental. For example, it can concern management costs, personnel costs, provisions for charges, depreciation, the costs of the seasonal rental platform such as, property tax, insurance premiums as well as current expenses such as repairs and maintenance.

Beyond the charges you can have on the seasonal rental of an accommodation, you must be aware of the other deductible expenses to avoid ending up with too much tax. To do this, you should contact a person specialized in the field, who will be able to provide you with all the necessary information.

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What is the tax rate for Airbnb income?

From now on, you know that the calculation of your tax on vacation rentals will be directly dependent on the tax system you have chosen. So, if you go for the real regime, it will be based on the progressive scale of income tax.

In 2022, the tax rate is 0% if your income is below €10,225.

The tax rate then increases to 11% for income between €10,226 and €26,070.

Between €26,071 and €74,545, the tax rate is 30%.

It then rises to 41% for income between 74,546 and 160,336 euros.

Finally, it is 45% when income exceeds 160,336 euros.

The rate of social security contributions is 17.2%. This means that if you are under the micro BIC regime, i.e. with income not exceeding €72,600, an allowance of 50% is automatically applied.

To take a concrete example, let's use a possible rental of an apartment in Paris via Airbnb. You received €10,000 in rent that will be added to your annual salary.

If you are in a 30% bracket, the following calculation applies:

10,000 / 2 = 5000 X 30% = 1500 euros. This is the amount you will have to pay to the tax authorities and don't forget to add the 17.2% social security deductions, i.e. 860 euros.

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Opt for UpperKey Concierge for stress-free Airbnb property management.

How to be safe for your tax returns?

Now that you understand the mechanism, you are certainly looking for the best solution to rent on Airbnb. Thus, the best solution remains to go through the UpperKey concierge service. UpperKey is specialized in short-term property management and you will have no problem going through the agency for the rental.

The agency will take care of everything, i.e. publishing the advertisement for your property, but also taking care of the reception of the tenants and the general maintenance of the property. Concerning the tax declarations, you will receive a paper indicating the total amount of income and the way to declare it in relation to your regime.

If you have any questions regarding the management fees, a privileged contact will be at your disposal.

This is a solution to keep in mind to have peace of mind, without fear of a tax adjustment. All your income will be accounted for in the right way and you will have a summary so you won't make any mistakes. So keep it up and don't hesitate to work with UpperKey Concierge who will give you all the attention you need for seasonal management on Airbnb.

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