Professional or non-professional furnished renter?

Your activity as a furnished landlord is taxed in the category of industrial and commercial profits and can be registered under two regimes with different consequences: the regime for professional furnished landlords and the regime for non-professional furnished landlords.

What are the consequences of being subject to one or other of these regimes?

 

I) The conditions for inclusion in the various schemes

 

To be considered as a professional furnished landlord, two cumulative conditions must be met:

• The annual income generated by the property rental activity is greater than €23,000 including tax
• The annual income generated by the property rental activity is greater than 50% of the professional income of the entire tax household

If one of these conditions is not met, the property rental activity will fall under the non-professional furnished rental regime.

 

II) The consequences of being subject to one or other of these schemes

 

A) The regime for non-professional furnished tenants

Rents are taxed in the category of industrial and commercial profits (BIC) under the micro or real regime.

Deficits can only be deducted from the income from the furnished rental.

Social security contributions amount to a fixed percentage of 17.2%.

Administrative and tax formalities are simplified.

 

B) The regime of professional furnished rental

Rents are taxed in the category of industrial and commercial profits (BIC) under the micro or real regime.

Deficits can be deducted from overall income.

Income is subject to professional social charges to be paid directly to URSSAF.

Administrative and tax formalities are more complex.

 

If you are interested, please do not hesitate to contact us on the phone +33 (0)1 53 93 94 20 or by email at [email protected]. If you would like to keep up to date with everything that is happening here at Maupard then be sure to follow us on our social media pages :

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