FURNISHED TOURIST ACCOMODATION OBLIGATIONS
What is a tourist furnished accommodation?
Definition: tourist furnished accommodations are individual housings such as villa and apartment which are available for short periods.
It is necessary to carefully read the regulations of your collective ownership and check if you have the right to lease a furnished tourist accommodation.
If you intend to lease your property as a touristic furnished accommodation, there are some requirements you need to fulfill at the city hall where your property is. You can also ask to rate your property but this is not an obligation.
- The declaration of your property
According to the article L.324-1-1 of the Tourism Code, you have to declare the property to the City Hall of the city where your property is located.
If you don’t, you expose yourself to a 450 euros fine.
- The authorization from the City Hall
Besides the declaration, you need to get the authorization from the City Hall of the city where the property is. If you don’t, you expose yourself to a 50 000 euros fine.
This authorization concerns Paris and more than 200 000 residents’ area or any other towns on the prefect order.
If you rent out your property through a real estate agent or a website as Abritel or Airbnb, they have to inform you about your obligation and can ask you a signed statement on oath.
To help you get this authorization, you can ask the real estate agent in charge of your property.
- The optional rating of the property
If you want to, you can ask for the rating of your property from 1 to 5 stars. For that, you need to send a demand to a certified valuer on Atout France website.
The rating of you property allows you to get a 71% flat deduction instead of the 50% flat deduction which is advantageous.
- The registration to the INSEE’s SIRENE
You need to go to the Trade Court administration services of the city where your property is, with the POI form.
Once the administration procedure done, you’ll get a SIRET number you will have to communicate to your tax department. Indeed, this SIRET number has to be mentioned on your French tax return.
The tax regime applicable to touristic furnished lettings
Real estate income on furnished lettings are considered as an income from a commercial activity.
Micro-bic regime: if you earn less than 32 600 euros (gross) on your furnished lettings, you may choose micro-bic regim, which means that the taxe base will constitute 50% of your total income. In consequence, you can’t deduct any expenses from your gross income.
There is a specific Micro Bic regime for tourist furnished activity.
You can opt for this regime if the 2 conditions are respected:
- Declaration of your property to the City Hall
- The rating of your property
This regime is applicable if your rental income doesn’t go over 82 500 € and there is an automatic 71% deduction.
If both conditions aren’t satisfied, the regime applicable is the general Micro Bic regime, with 50% deduction.
The real regime can be an option or an obligation if your rental income exceed 32 600 euros. You can deduct your real charge but we would need to keep account.
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