Everything you need to know about Airbnb rentals : Taxes, Legal Status, and Legal Obligations

Which status to choose for declaring your rental income?

If you're an individual renting out a furnished property, your income must be declared under one of the following two statuses:

1. Non-Professional Furnished Landlord (LMNP)

The LMNP status is designed for owners who rent out one or two properties furnished. This status allows you to declare your income under two tax regimes:

• Micro-BIC regime: You receive a flat 50% deduction on your gross rental income.

• Real Simplified regime: You can deduct your actual expenses (maintenance, agency fees, loan interest, depreciation) from your income, which is often advantageous if your expenses are high.

2. Professional Furnished Landlord (LMP)

This status applies to owners who make furnished rentals their primary activity. To qualify as an LMP, two conditions must be met:

• Your rental income must exceed €23,000 per year or represent more than 50% of your total income.

• The industrial and commercial profits (BIC) from your rentals must be higher than your other income.

How to register as a furnished landlord?

Whether you opt for the LMNP or LMP status, you must declare your activity with the Commercial Court Registry within 15 days of starting the rental. To do this, fill out the Cerfa P0i form, which will allow you to obtain a SIRET number. This number is essential for declaring your income.

Additional formalities:

• Declaring under the real regime requires a specific request.

• The Business Property Tax (CFE) is mandatory starting from the second year of activity.

• Since January 1, 2023, all formalities must be done through the single portal formalites.entreprises.gouv.fr.

Our advice for compliant and optimized Airbnb rentals:

1. Income declaration: a legal obligation

Regardless of the rent amount, all rental income must be declared. Full transparency avoids penalties and ensures optimal management.

2. Respect exemption thresholds

If you rent out one or more rooms in your primary residence, ensure your income does not exceed €760 per year to benefit from tax exemption.

3. Anticipate the CFE

The Business Property Tax (CFE) applies from the second year of rental. Depending on your activity (with or without services), it will be managed by the URSSAF or the Chamber of Commerce.

4. Choose the right tax regime

Compare the Micro-BIC and Real Simplified Regimes to determine which is most advantageous based on your expenses and rental income.

5. Stay informed about local obligations

Some municipalities, particularly in tourist areas, impose specific regulations, such as the requirement for a registration number or restrictions on rental duration. Check with your local town hall.

FAQ:

Are Airbnb earnings taxable? Yes, in France, all income from renting out furnished properties through platforms like Airbnb, Booking.com, or Abritel must be declared. This gross rental income must be reported in your online tax return or using the CERFA form No. 2042. This declaration is essential to comply with French tax law.

Can you be exempt from taxes on Airbnb earnings? Income from furnished rentals is generally taxable. However, an exemption is possible if the property is your primary residence and the rental income does not exceed €760 per year. This threshold is specified in Article 35 bis of the French General Tax Code. Above this amount, the income is subject to taxation.

Are Airbnb earnings transmitted to the tax authorities? Since 2020, rental platforms like Airbnb, Booking.com, and Abritel are required to transmit users' income data to the French tax authorities each January. This enhances transparency and reduces the risk of omissions.

Withholding tax and Airbnb Unlike some other income types, platforms like Airbnb do not directly withhold tax at source. The income you receive is subject to monthly or quarterly advance payments, calculated based on the previous year's income. This amount can be adjusted at any time in your personal space on the official impots.gouv.fr.