Are you an Airbnb host? And are you looking to optimize your income through taxation? Then you have come to the right place!
Renting your home on Airbnb, means taking advantage of a collaborative platform that handles absolutely incredible traffic (nearly 90 million nights booked in France in 2022), and a very broad aura of trust.
Indeed, Airbnb is considered to be relatively reliable, and this therefore makes it the preferred platform for many individuals who want to rent out their real estate. But it also involves obligations of declaration to the tax authorities. Luckily, there are plenty of ways to lighten the bill, and that's what we're going to look at in this article:
So to find out more about the various methods of tax optimization on Airbnb, read on!
It is important to start with the mandatory status. In fact, when you rent furnished accommodation through Airbnb, by default you become a non-professional furnished renter (LMNP).
This regulated status involves certain obligations, particularly in terms of taxation. As an LMNP, you therefore have theobligation to report all income received under this rental to the tax services.
In other words, each overnight stay received must be recorded and declared. In terms of choosing the tax regime, you have the right to choose the industrial and commercial profits regime (BIC) only if your rental income does not exceed a threshold of 72,600 euros per year.
This regime allows you to benefit from specific tax advantages, which we will detail later in this article!
So let's start outlining the different ways to optimize your taxation on Airbnb!
If your Airbnb income exceeds the threshold of 72,600 euros per year, you can no longer choose the BIC regime. In this specific case, it may be advantageous to choose the actual tax regime.
This regime allows you to deduct all of your expenses related to renting your home, such as maintenance costs, condominium fees, loan interests, etc.
These deductions therefore allow you to significantly reduce your tax base, which in turn reduces the amount of your income tax.
Again, if you choose the real tax regime, you also have another possibility of tax optimization. It is the possibility ofamortize the cost of your real estate.
What does it consist of?
Depreciation works as follows: A deduction, each year, of a portion of the value of the asset over a specified period of time. Once again, this deduction allows you to reduce your tax base, and therefore to reduce the amount of your taxes.
If you make the choice to become professional, you can choose a specialized management agency: these are the Airbnb concierge services. They have a number of obvious advantages:
But that's not all, because using a concierge to manage your Airbnb accommodation allows you to deduct management fees from your income.
These fees obviously include rental management fees (therefore those received by the concierge), but also platform commissions. So it's a double economy!
If you want to use an Airbnb concierge, take go to our website !
If your Airbnb income does not exceed the threshold of 72,600 euros per year, you can then choose the micro-enterprise regime. This simplified regime allows you to benefit from a flat rate reduction of 50% on your income. So, you will only be taxed on half of your Airbnb income!
It is a very fast and effective solution to greatly optimize your Airbnb taxation.
Finally, last very interesting point: if you decide to rent your main residence via Airbnb while you are away, you can then benefit from a partial or total exemption from your income.
In fact, the revenue derived from renting a main residence can be exempt from tax if the rent does not exceed a certain ceiling set each year by the tax authorities.
For example, in 2023, the Annual rent ceiling is 199 euros in Île de France and 147 euros per square meter of living space, charges not included. Concretely, if you have a 30 square meter studio in Île-de-France, you can therefore benefit from a total exemption from your rental income as long as your annual rent does not exceed 5970 euros.
It is important to answer three common questions when renting an Airbnb property. First, how to report your income.
In concrete terms, it's quite simple: the Airbnb income declaration is done at the same time as the income tax return, i.e. every year in spring.
You must indicate the total amount of your Airbnb earnings in the corresponding box (Income from non-professional furnished rentals) of your tax return.
In the case of the real taxation regime, you must also fill in the specific forms relating to the declaration of industrial and commercial profits (BIC).
It's important to note that not reporting your Airbnb income can lead to financial sanctions very important. The tax administration has increasingly effective means of control to detect undeclared income, and Airbnb is obliged to transmit to the tax authority information relating to the income generated by rentals made on its platform.
By briefly inquiring, we quickly realize that the housing tax and property tax are two taxes that must be paid as the owner of a rental property. However, there is also the CFE (corporate property tax), which is due by professionals working in LMP or LMNP.
Knowing that on Airbnb, most hosts rent as an LMNP, they should logically be subject to the CFE, in addition to the housing tax... But this is not necessarily the case. Let's look at that in detail.
This tax is due in the case of usual activity, carried out on a professional basis and without salary remuneration. It is not due the first year of activity.
If you rent a property from January 1 of the current year, and you do not enjoy the property, then it is up to the tenant to pay the housing tax. In case you cannot find a tenant (and you can demonstrate it), then it is possible to have an exemption.
Now, in the case of an owner who rents for a short term and who keeps the enjoyment of the property for part of the year, he will therefore have to pay housing tax, but he will not have to pay the CFE, if he can prove the unusual nature of the rental.
Second situation: for a person who rents his property for a short term throughout the year, and who can demonstrate that he does not have the enjoyment of it, then he will not pay any housing tax, but will remain liable to the CFE (unless its turnover is less than 5000 euros).
In the end, everything depends on the enjoyment of the property. An owner who rents all year round, whether in LMP or LMNP, will have to pay the CFE, and if he does not rent all year round, he will then simply pay the housing tax.
That is the end of this article. Now, you have in your hands many effective strategies in order to reduce your tax base by the administration, in order to reduce your income, and therefore, your income tax.
Obviously, everything will depend on your goals, but the status and the tax regime are two very important elements to keep in mind. French tax regulations are strict, which is why it is essential to report your Airbnb income correctly.
>>> If you want to contact a concierge, to make your rental profitable, then click here !
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