Short-term rentals, which have been very popular in recent years, raise many tax questions. Whether you’re an individual or a professional in this field, understanding the different taxes related to your activity is essential to avoid any unpleasant surprises. Among these taxes, the Business Property Tax (CFE) and the Housing Tax are often sources of confusion. So, what are the specifics of these two taxes for seasonal rental owners? Discover all the answers to see more clearly and manage your activity with peace of mind!

What is CFE for Seasonal Rentals?

The CFE (Business Property Tax) is a local tax to which professionals and individuals who carry out a professional activity, even occasionally, such as seasonal rentals, are subject. You’ve guessed it: if you rent out a property for short-term rental, the CFE directly concerns you. But why this tax? Simple: by renting out a property, you make profits. You are therefore considered as a business in the eyes of the tax administration.

The amount of CFE varies according to several criteria, including the location of your property, the size of the municipality, and the cadastral rental value of the rented apartment or house. Note that there is a minimum contribution, set by each municipality, which can range from 200 to over 1,000 euros per year. Some exemptions are possible, particularly for new landlords (exemption for the first year of activity) or if the income generated by the rental is low.

In practice, it is important to check with your municipality about the calculation and payment methods for this tax. Indeed, some municipalities apply higher rates than others. You must register with the Business Formalities Center (CFE) as soon as you start your seasonal rental activity to avoid penalties.

Housing Tax in Seasonal Rentals: who Pays?

The Housing Tax, on the other hand, is a sensitive subject, particularly with the progressive reform aimed at eliminating it for primary residences. However, for second homes or properties intended for short-term rental, this tax remains applicable. So, who is concerned by this tax and how is it calculated?

If you own a property rented out for short-term stays, you normally have to pay the housing tax for this property, unless it is fully furnished and declared as a “commercial premises”. Be careful, however: some municipalities impose surcharges on second homes to curb real estate speculation and preserve access to local housing. These surcharges can represent up to an additional 60%, which can quickly increase the bill.

However, if you rent out your property for several months a year, it is possible that this charge is transferred to your tenants, depending on the terms of your lease. It is therefore essential to inquire carefully and include this tax in your annual financial forecasts. Each case is unique and contacting the tax office can help you avoid misunderstandings.

How to Properly Manage these Taxes as a Seasonal Landlord?

Managing taxes related to seasonal rentals, such as CFE and Housing Tax, may seem complex, but with good organization, you can avoid many hassles. Here are some tips to help you anticipate and control these tax obligations.

Anticipate Payments

CFE and Housing Tax are annual deadlines. It is essential to integrate them into your budget to avoid last-minute surprises. Make sure you know the deadlines and, if necessary, opt for staggered payments to manage your finances more serenely.

Consult an Accountant

An accountant specialized in seasonal rentals can guide you to optimize your tax returns. There are exemption and optimization options adapted to your situation. A professional will help you reduce your tax burden while complying with legislation.

Manage your Rentals on the French Riviera with Bnb Groom Services

At Bnb Groom Services, we assist property owners in Nice, Villefranche-sur-Mer, and Cannes with managing their seasonal rentals. Our team ensures that your properties are perfectly taken care of while guaranteeing compliance with local regulations. Contact us today to optimize the management of your rentals on the French Riviera and rent with peace of mind.

Although these taxes may seem complex, good anticipation and rigorous management will allow you to continue renting with peace of mind. Remember to inquire with your local municipality, plan your payments in advance, and if necessary, consult an expert to ensure that you comply with all tax obligations. With proper preparation, you can manage your seasonal rental activity effectively, without unnecessary tax-related stress.