While the parahotel industry is attracting more and more individual investors, commercial companies (SARL, SAS, SCI à l'IS...) also see it as a potential lever for tax optimization, in particular through the recovery of VAT and the integration of expenses into a BIC framework. But this regime cannot be understood lightly: it imposes strict obligations, a rigorous organization and can have serious consequences in the event of requalification or poor management.
Para-hotels can be carried out by several social forms, provided that the activity is Commercial :
• SARL or SAS (unipersonal or not): these are the most common structures for carrying out a para-hotel activity. They can be fiscally transparent or subject to the IS.
• SCI at the IS : possible, but rarely recommended for operational activities. SCI at IS is used more for Carrying the walls, not to exploit.
• General Partnership (SNC) : possible, but infrequent in practice due to the indefinite responsibility of the partners.
⚠️ IR SCIs are not compatible with the parahotel industry. As soon as the activity becomes commercial (BIC), the SCI is tax-excluded from the partnership regime and automatically switches to corporate income tax.
As for individuals, the company must provide at least three benefits among the following:
• Welcoming customers
• Supply of household linen
• Breakfast
• Regular cleaning
These benefits must be real, trackable and in accordance with hotel standards. The intervention of a subcontractor (concierge) is authorized, but the company must organize and invoice the entire service.
The company must:
• Be registered with the RCS
• Have an intra-community VAT number
• Produce compliant commercial accounting
• Justify active management: invoicing, management of service providers, customer follow-up, etc.
✅ VAT recovery
One of the main attractions of the para-hotel status in a company is the deductibility of VAT on:
• New real estate (under conditions)
• Renovation or rehabilitation works
• Furniture, equipment and charges
📌 This recovery is particularly interesting for projects heavily invested (works > €100,000 or off-plan purchase).
✅ Deduction of expenses and depreciation
In the BIC regime:
• Depreciation is deductible, including on the building (in case of IS option)
• All operating expenses are deductible (loan interest, personnel costs, fees, subscriptions, etc.)
👉 This allows minimize the taxable result, especially during the first years of activity.
✅ No revenue cap
Unlike LMNP or micro-BIC, the parahotel industry does not impose any turnover ceiling. A company can therefore develop a large-scale activity without threshold constraints.
⚠️ 20-year VAT commitment
A company that collects VAT undertakes to maintain the taxable activity for 20 years. In case of:
• Sale of the property within 5 years: VAT is due on the sale price
• Exiting the VAT field (private use, bare rental...): adjustment of VAT by 20th
⚠️ Reduced margin if VAT cannot be passed on
Rents must be charged TTC with 10% VAT. If the market does not allow prices higher than those of conventional furnished rentals, This reduces the net margin.
⚠️ No private occupancy of the property
Toute Occupation by a partner, even occasional, may call into question VAT liability, lead to a Tax correction, or even a taxation in respect of profits deemed to be distributed.
In company at IS:
• The resale of the property generates a professional added value included in the taxable result
• The calculation base is net book value, i.e. the purchase price minus depreciation
• Taxation follows the SI scale (15% up to €42,500, then 25%)
example :
🔍 Optimization tip : cede the social shares rather than the building allows you to benefit, in some cases, from a Softer taxation, in particular depending on the length of ownership and the regime applicable to securities.
Para-hotel business by a Company is a A powerful tax structuring and optimization tool, if the activity is real, sustained and well managed. This regime is intended for real estate professionals, specialized operators or structured groups capable of providing a level of service equivalent to the hotel industry.
But it is also a technical and demanding regime, not very tolerant of approximations. The absence of formalism, passive management or inconsistencies between services and operational reality can lead to costly tax requalifications (VAT, IS, penalties).
We support companies in setting up para-hotel activities:
• Tax analysis
• Legal structuring
• VAT simulation
• Optimization at resale
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