My company acts as a non-professional renter of furnished accommodation. For which taxes is it liable ?

Under the provisions of Article 155 IV-2 of the French General Tax Code, direct or indirect letting of furnished accommodation, or accommodation intended to be let furnished is deemed to be a professional activity if the following three conditions are met:

  • At least one member of the taxable household is registered with the Trade and Company Registry as a professional rental agent

  • The annual revenue generated by this activity by all members of the taxable household is greater than €23,000

  • This revenue is greater than the revenue of the taxable household that is subject to income tax in the categories of wages and salaries within the meaning of Article 79 of the French General Tax Code, and the categories of business profits (other than that earned from the letting of furnished accommodation), agricultural profits, non-commercial profits and revenue of the managers and partners set out in Article 62 of the French General Tax Code.

The professional or non-professional nature of the rental of furnished accommodation is assessed at the level of the taxable household, and applies to all of the furnished accommodations rented by the household. This assessment does not, however, preclude either a separate determination of the results of the activity of either spouse, nor the possibility that each member of the taxable household may, where applicable, benefit from the micro-enterprise tax regime.

Revenue earned from the non-professional letting of furnished accommodation is taxable as income tax in the category of business profits.

Updated DINR PRO