top of page

Maximise your rental income!

Complete Guide to Filing Your Airbnb Tax Return: Tips and Essentials

When using the platform having an Airbnb account, Arbnb rental income tax is inevitable. Indeed, all the taxable income you have received must be declared to the corresponding tax authorities. Nevertheless, there are very specific capital gains tax conditions. It also depends on your tax system. If you are having difficulties with your self assessment tax return, we will provide you with a complete clarification.

Remember that tracking income isn't just crucial for tax purposes because you must pay tax on any income that exceeds a specific amount and you can choose to pay tax on your profits, because you can defer Capital Gains Tax on the sale of the initial property.

Representing the complexities of Airbnb tax obligations
Understanding rental income and capital gains tax.

The right way to declare your Airbnb income to taxes

A good property management implies an Airbnb declaration on all your taxable income. Mostly, you will find properties with property furniture available on the platform. However, these available properties have the particularity of being on the market for short term rental. Thus, you naturally adopt the status of non-professional furnished rental. As you probably know, this is a particularly regulated status and therefore you are obliged to comply with a set of capital gains tax rules.

Otherwise, you will be in the illegality towards the tax department. Therefore, we strongly advise you to declare all the sums received through the seasonal rental. If you don't do it, the proof of the crime will be extremely easy, because Airbnb records all the transaction history and they are then transmitted to the corresponding tax department.

But when it comes to filing your self assessment tax return, you should know that there are different solutions available to you. The differences are mainly in the tax system. For example, you can opt for the real regime or the industrial and commercial profits regime. However, this second option is only available if you do not exceed the ceiling of €72,600 per year.

The Airbnb airbnb earnings summary tax return is filed at the same time as your traditional tax return. In France, this document, the income form with proof of income, must be filled out in the spring. You also have to show your Airbnb proof of income and the income statement.

UpperKey property management blue banner

Everything you need to know about the real regime for an Airbnb rental and income taxes

If you don't use a manager, you have to take care of the administrative part of the seasonal rental. The first option concerns the real regime. If you choose this status, it is imperative to declare the totality of the rents that you have collected through the Airbnb platform. However, the amount you declare must not include any charges or additional costs.

Then, a progressive scale is automatically applied and you will be subject to social security deductions. The principle of calculation is the same as for airbnb earnings tax.

The impact of the real regime on Airbnb rental income
Providing guidance on the real regime for Airbnb taxes in France.

Understanding the BIC regime for Airbnb income

This is a status that you can adopt when you do not exceed the ceiling of 72 600 €. Let's imagine that you are doing seasonal rentals in Paris, you gradually accumulate rents and at the end of the year you have been able to collect a total sum. But very quickly, the sums can be important, especially if you manage several properties. But if you

do not exceed 72 600 € per year, you can choose the regime of commercial industrial profits.

This is a simplified status allowing you to automatically receive a 50% deduction. But it only concerns the expenses related to your rental as a own home. Concerning its amount, it is fixed at least at 305 €. If you are below this threshold, you benefit from a total exemption from extra tax on your Airbnb income.

UpperKey property management blue banner

Calculating your Airbnb rental income

It is important to look at the calculation method for your Airbnb income. As you have seen before, it all depends on the regime chosen. Then, the tax administration applies the appropriate scale.

Let's take the case of a seasonal rental which is carried out under the real regime. As soon as you exceed the €72,600 ceiling, the progressive scale is applied. Concerning the micro BIC regime, the declaration of your gross income is to be reported on your tax return. In this way, you will benefit from a 50% deduction on the charges and expenses specific to this rental. These are, among others

Insurance premiums.

  • Charges related to the personnel.

  • Provisions for charges when they are present.

  • Depreciation of the property.

  • Airbnb platform fees, but only up to 3%.

  • Then there are the management fees.

  • The property tax.

  • The current management charges concerning only the repairs and maintenance of the property.

The progressive scale under the real regime for Airbnb taxation.
Real regime's progressive scale for seasonal rentals.

What is the rate used by the taxes for an Airbnb rental?

The truth is that the calculation of the tax depends on the regime you are affiliated to. In the real regime, you just have to refer to the progressive scale of tax. The latest published by the tax authorities is as follows

  • 0% if you are in the annual income bracket below 10 225 €.

  • 11% between 10 226 € and 26 070 €.

  • 30% between 26 071 € and 74 545 €.

  • The tax rate rises to 41% if you are in the bracket between €74,546 and €160,336.

  • Finally, the tax rate is 45% for an income bracket above €160,336.

  • As for social security contributions, the rate remains fixed, i.e. 17.2%.

However, the calculation is different if you belong to the micro BIC regime. Your income is then less than 72 600 €. Thus, even if you declare the gross amount, the tax authorities apply an abatement of 50%.

Let's take the example of a person renting an Airbnb property on Airbnb. This person has received a total of €10,000 in rent. Currently, he or she is in a 30% bracket of the income tax scale. It will therefore be necessary to calculate his income over the last 12 months, so several months, of the calendar year and add the 10 000 € received. However, 50% of this €10,000 is automatically deducted, leaving only €5,000 in the calculation. With a rate of 30%, this means that 1500 € will have to be paid to the state. Then, the social security deductions are calculated on the 50% deduction and in this case they represent 860 €. In total, the person will have to pay 2360 € of earnings tax with an Airbnb rental.

It should be noted that an exemption applies automatically when the seasonal rental concerns your main Airbnb residence and you have not collected more than €760 per year.

A step-by-step breakdown of the example calculation for Airbnb income tax
Airbnb taxation an example of Income tax calculation.

How to avoid problems with Airbnb declarations?

You want to make the best seasonal real estate investment, but you're not comfortable with the administrative part. So why not delegate this management directly to UpperKey Concierge? You'll find a qualified person to help you file your tax returns.

This will help you avoid miscalculations and possible penalties from the IRS. But that's not all, UpperKey Concierge takes care of the entire management of your property. Not only do you forget about the various administrative issues, but also about welcoming your guests, managing them and publishing announcements. A definite benefit to free up your time.

Don't forget to subscribe to our YouTube channel!

Click the icon below.


Determine your property's rental value with UpperKey as your tenant

bottom of page