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What is the Tax Treatment of an Airbnb Rental?

Airbnb and taxation are recurrent questions, but it is important to take an interest in them from the start to avoid finding yourself in an uncomfortable situation because you have not declared your income correctly. Generally speaking, there are very specific rules that must be respected. If you have any difficulties, it is strongly recommended that you contact a professional in the field of seasonal rentals.

The tax declaration process can be challenging, it is important to understand the details.

The taxation of an Airbnb rental and the declaration of income

Renting an Airbnb implies a particular taxation, in any French agglomeration and especially in Paris.


From the moment you earn a few euros from a seasonal rental platform like Airbnb, you will have no choice but to declare your income to the tax authorities. By default, you will be subject to the industrial and commercial profits regime.


But be aware that several configurations are possible in terms of Airbnb taxation, hence the importance of taking them into account when you want to know how to maximize your investment.


When the income you generate does not exceed the €70,000 ceiling, you can also opt for a simplified system called the micro BIC system. This regime is particularly interesting because it allows you to benefit from a 50% deduction.


Filling out your tax form correctly

Airbnb taxation implies filling in a specific form for self-employed people. Please note that we are talking about a seasonal rental that does not constitute your main activity. If this is the case, you will have to download the 2042 C form, directly accessible from the tax site. You report all of your income on line 5 ND. However, if you have chosen to pay taxes in full discharge, you do not enter the amount of your income in this box, but rather on line 5To.


It is important to consider Airbnb taxation, as it will directly affect your rental investment.


As soon as your income from seasonal rentals exceeds the €70,000 ceiling, you automatically switch to the real regime. It is therefore no longer a question of filling out a form intended for non-salaried professions, but rather of orienting yourself towards a professional declaration through form 2031 SD.


To complete this document, you will have to go to the "industrial and commercial profits" category and complete the "E" box as required, indicating the various information requested concerning your income. Don't forget to complete your tax return with the 2042 C Pro declaration. This time, you will fill in the "income from non-professional furnished rentals" column.


In any case, never skip your tax return, because it is an obligation on your part. There is only one exception concerning Airbnb taxation, when you rent out one or more rooms of your main home. In this case, it will be possible for you to benefit from a tax exemption, but only when the income generated by the seasonal rental does not exceed 760 € per year.


In certain renting circumstances, you can benefit from a tax reduction.

As soon as the income is higher, a tax return is still required.


Taking into account social security contributions

As soon as you offer furnished accommodation for seasonal rental, i.e. for a short period of time, you can be treated as a self-employed person. This is a particularity to be taken into consideration when it comes to Airbnb taxation.


Since you have this very special status, you will have to pay certain social security contributions. But don't worry, you won't be systematically subject to this scheme, because once again it depends on your annual revenue. If your seasonal rental does not generate more than €23,000 in revenue per year, you will not be considered a self-employed person. Therefore, you do not have to pay any social security contributions.


Otherwise, you will be taxed according to a scale predefined by the tax authorities.


Please note that the payment of social security contributions is completely independent of the system you have chosen previously. To pay your social security contributions, you can contact the URSSAF if you are covered by the general scheme. However, you should know that this is also the case if you carry out your activity as an auto-entrepreneur.

If you are considered as a self-employed worker, you will have to go to the net-entreprise.fr website to find out more. But under no circumstances should you postpone your declarations, because unfortunately late payments will accumulate and they will be increased.


Don't take any risks when it comes to Airbnb taxation

It is important to be in perfect compliance with the regulations of the Airbnb platform, but also towards the tax department. To make your job easier, the Airbnb platform sends you an annual statement of income received from your various rentals every year.


But be aware that since 2019, the platform is also obliged to send its results to the tax department. So, if you thought you were saving money by not declaring your seasonal rental income, be aware that the tax authorities will easily find out about it. If you are ever audited, it will be difficult to prove otherwise.


It may be a simple oversight on your part, but if the fraud is proven, you should know that the tax authorities can go back up to three years. In addition, you will be subject to a 10% surcharge and a late payment penalty of up to 0.4% per month.


Why entrust the rental of your property to a company that is an expert in seasonal rentals?

You are not necessarily at ease with the various administrative and fiscal questions. You don't have the time to manage your vacation rental property or to waste time communicating with travelers. In this case, a company worthy of the name will be able to provide you with a turnkey service. This is the case of UpperKey, a company specializing in vacation rentals, particularly properties on the Airbnb platform.


By entrusting your property to a management company like UpperKey you free yourself of the complex paperwork.

When you're not familiar with all the specific rules and regulations that apply to vacation rentals, you don't need to get up to speed, because UpperKey takes care of everything. You get the most out of your rental investment and everything will be done to maximize your income. You have peace of mind and no worries about tax returns, because all the documents will be made available to you.



Start earning more rental income today by contacting UpperKey

Find out how much you can earn with UpperKey:

Property Management London:

+ 44 7782 502628

Property Management Paris:

+ 33 1 87 66 24 32