From the moment your property generates rental income, it entails certain tax obligations. To help you see more clearly into the taxation of Airbnb properties, discover in this rental taxation guide everything you need to know to adopt the best management of your apartment or house for short-term rental on the French Riviera.
Tax Regulations for Airbnb Rentals in 2024
The new 2024 finance law on Airbnb furnished tourist property rentals has changed the rental market. In principle, all income from Airbnb furnished property rentals is considered by the tax administration as industrial and commercial profits. You must therefore include them in your income tax return. However, it is important to consider the two types of applicable tax regimes. Firstly, according to Article 35, 5° bis of the General Tax Code, the micro-BIC regime is to your advantage when your rental income from your furnished tourist properties is less than €180,700. This status also allows you to deduct a flat-rate allowance of 71% on your receipts. The second regime, called “simplified real”, is ideal for deducting the actual expenses related to your short-term furnished rental activity. This includes, for example, the operating costs of your accommodation, management fees, advertising costs, or interest in case of a mortgage. Before choosing between these two regimes, take the time to calculate the projected gains from your Airbnb rental.
How to Declare your Airbnb Income
When declaring your rental income from Airbnb properties, you have the option to deduct charges that are directly attributable to your activity. This includes the depreciation of all household appliances and furniture you have installed inside your rental property. You can also deduct any condominium fees, insurance premiums, property taxes, or maintenance costs for common areas. Deductible expenses also include “energy supply costs such as water, heating and” electricity. Finally, if you use a specialized agency for managing Airbnb properties such as BnB Groom Services on the French Riviera, the management fees are also deductible from your income taxes.
Calculating Expenses Related to Tourist Property Rental
In order to ensure good accounting and tax management of your Airbnb property rental, it is essential to provide regular and thorough monitoring, as tax authorities may at any time request documents justifying income and expenses. This is why archiving your documents for the recommended period of 10 years is essential. Additionally, these tax documents can help you implement a strategy to monitor the profitability of your rental investment.
Regarding VAT calculation, Article 261 D of the General Tax Code provides for an exemption for rental accommodations. This provision thus extends to Airbnb property rentals. However, VAT is due if you offer at least one of the following services: breakfast, cleaning, provision of household linen, as well as guest reception.
However, in the new 2024 tax regulations, certain exceptions may apply: if the cleaning service is offered for a stay of less than a week, in this case, you are exempt from VAT.
Why Use Bnb Groom Services for Managing your Airbnb?
Bnb Groom Services is an agency specializing in Airbnb property management on the French Riviera, in the regions of Nice, Villefranche-sur-Mer and Cannes. For property owners, our team is a real support by offering turnkey solutions. It is thanks to expertise in the tourism sector and by using high-performance tools that we offer concierge services such as reservation management, guest reception, housekeeping, and customer relations. Furthermore, we provide additional services to your tenants, such as private transfers or restaurant reservations.
Sources:
Article 35 – General Tax Code – Légifrance. (n.d.). https://www.legifrance.gouv.fr/codes/article_lc/LEGIARTI000033817773/
Article 261 D – General Tax Code – Légifrance. (n.d.). https://www.legifrance.gouv.fr/codes/article_lc/LEGIARTI000034596921
