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The CFE and the housing tax for short-term rentals are two taxes to which the owner of a furnished property, rented to visiting visitors, may be liable. As much Housing tax and the property tax are well known to the owner taxpayer, as much The CFE is ignored by many of them. And this, in violation of the General Tax Code. First, the occupant of a home in 1Er January must pay housing tax as part of his lease or his property title. On the other hand, The CFE or business property tax Is”due by professionals working on a regular basis without an employee on 1Er January of the tax year.” Indeed, the furnished rental business, carried out in LMP or LMNP (I am reading the OIQIA article on this distinction) is considered a commercial activity from a fiscal point of view. To be taxable to the CFE, it is therefore necessary to meet three conditions simultaneously. The usual nature of the activity. The exercise of the activity in a professional capacity (management of a property that is not part of a private asset). The absence of salary remuneration. Finally, it should be noted that it is not due in the first year of activity. Therefore, the question arises: what tax should an owner of a short-term rental pay? If he pays for one, is he exempt from the other? OIQIA summarizes the different scenarios for you, without omitting to remind you of a rule of common sense. Do not hesitate to contact the tax office to which you are attached to to validate your situation.
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When a tenant rents a property at 1Er January of the current year, he will have to pay the housing tax. And this is because he has the enjoyment of it as part of his lease. So the owner will not pay anything. However, when the property is not rented at 1Er January of the current year, the owner is responsible for the housing tax. That said, there are some exemptions if he can demonstrate the impossibility of finding a tenant. In other words, he will have to demonstrate his futile search for tenants. And declare that he has no intention of reserving the property for himself as an owner. Accepted evidence is as follows:
First of all, two situations must be taken into account. Whether the owner maintains the enjoyment of the home or not. We are going to deal with both cases.
When we talk about furnished, it refers to the owner's main or secondary residence. On the other hand, the owner's personal home is his usual home. Thus, in this first case, the owner keeps the enjoyment of the property for part of the time. Here, it is the owner who will pay the housing tax. Even if an Airbnb-type tenant rents the property at 1Er January. This “reservation of the property by the owner” is therefore decisive. Finally, the highest French administrative court states that“the owner of furnished premises is liable to pay housing tax as soon as he can be regarded, on 1 January of the taxation year, as intending to reserve the disposal or enjoyment of it for part of the year.” Second, regarding the CFE, owners who occasionally rent part of their personal home (whether main or secondary) are exempt. That said, it is necessary to prove the unusual nature of the rental. The same is true for the case of an owner who furnished one or more rooms in his main home to a tenant whose main residence is also located. If this owner requests a “rent fixed within reasonable limits”, then they will not be subject to the CFE.
Attention, in the unique case of a 9-month lease (student lease type), this lease is considered classic. It is therefore the tenant who pays the housing tax.
Owners of classified furnished tourist accommodation, renting all or part of their personal home, are subject to housing tax. On the other hand, they are in principle exempt from the CFE (to be validated at the tax office).
In this case, if the owner shows that his property is rented for a short term for the whole year and that he never has the enjoyment of it, he will not pay any housing tax. Total exemption for the owner and the various tenants succeeding each other in the rental unit. Regarding the CFE, the owner is liable for it because his activity is considered as a professional activity in tax matters. However, if his turnover is less than €5,000, he will be exempt.
A classified furnished tourist accommodation is not taxable at Housing tax if the rented property is not the owner's personal home. In addition, the owner of a classified tourism will be subject to The CFE.
Thus, the CFE and the housing tax are mutually exclusive. A short summary table below will help you understand your situation at a glance. Thus, it is not possible for a short-term rental owner to pay both the CFE and the housing tax. Article 1407 of the CGI indicates this precisely (attention, the business tax indicated is in reality today the CFE). Premises subject to business tax are exempt from housing tax when they are not part of the taxpayers' personal home. Be careful, however, to balance between the owner and the tenant. Just because the owner is taxable to the CFE does not exempt the tenant from paying housing tax, if he is subject to it.
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