Income resulting from the rental of furnished premises of which you are the owner, as well as those from the subletting of furnished premises of which you are a tenant, are subject to income tax in the category of industrial and commercial profits (BIC ).
Qualification of the property as furnished tourist accommodation
For your rental property to be classified as "furnished tourist accommodation," you must submit a specific declaration to the local town hall. This process is mandatory. For some municipalities, you must obtain prior authorization from your local town hall.
See the website of the General Directorate for Enterprises
http://www.entreprises.gouv.fr/tourisme/meubles-tourisme.
Professional furnished rental or not?
A furnished rental company is professional when the following two conditions are met:
– the annual income from this activity by all members of the household exceeds €23 over the calendar year,
– these receipts exceed the income of the tax household subject to income tax in the categories of salaries and wages (including pensions and life annuities as well as the income of managers and partners mentioned in Article 62 of the CGI), industrial and commercial profits (other than those derived from furnished rental activity), agricultural profits and non-commercial profits.
In the event that one of these conditions is not met, the lessor is considered a non-professional lessor.
Steps prior to renting furnished accommodation
Whether you are a professional or non-professional furnished rental company, you must register.
Within the first fifteen days following the start of your activity, you must submit a declaration of business creation or start of activity electronically at the business formalities counter (GFE): formalites.entreprises.gouv.fr.
This approach will allow you to:
– to obtain a SIRET number
– to make known the existence of this activity
– to indicate the tax regime you have chosen.
Business property tax (CFE)
Furnished rental companies are liable for CFE. However, they are exempt from CFE, (unless the local authorities or their public inter-municipal cooperation establishments decide by deliberation, for the part which falls to them, to re-establish the CFE on these premises), persons who rent out or sublet all or part of their personal residence furnished, in particular as “furnished tourist accommodation”.
Tax service responsible for your furnished rental business
The competent SIE is the one that manages the geographical location of the furnished accommodation.
If you rent out several furnished properties, the competent SIE is
– that of your main residence,
– or that of your furnished accommodation producing the highest income.
If you carry out another taxable commercial activity, your profit and loss declarations are managed by the SIE responsible for this other activity.
More info on:
https://www.impots.gouv.fr/particulier/les-locations-meublees
