Renting out a French Ski Property through AirBnB? This Information is for You

In December 2016, new legislation came into effect for those who earn an income renting out their French property via AirBnB. Here’s a summary of the changes:

Income Taxes

Now all income derived from furnished rentals, whether ‘occasional’ or ‘usual’ falls into “Industrial and Commercial Profits”. For rental incomes between €305 and €33 100, a 50% tax reduction applies. This is known as the Micro-BIC scheme and it is applied from the 2016 financial year.

Social Contributions

From January 1 2018, people earning more than €23 000/year renting their homes for long or short periods will have to pay social contributions. The renter will have to choose which social contribution scheme applies to them i.e. general scheme, social scheme or self-employed (RSI), and some housings will benefit from better rates of social contributions.

“As explained above, you may make a lot of deductions before calculating your actual taxable income or if your gross rental income (i.e. the total rental income before deductions) from furnished lettings is less than €32,900, the taxable income may be calculated under the Micro-BIC, a simplified deduction scheme that simply taxes 50% of the gross income (i.e. 50% of the gross rental income – so the total income with no deductions at all – is automatically deducted in place of actual expenses).

No expenses need be demonstrated, no accounts are required and no separate tax forms for the business need be prepared. The main drawback of this regime is that it always shows a fixed taxable profit i.e. it can never show a lower net profit or a loss.”

Automatic Transfer of Income Information to Tax Authorities

As of 2019, AirBnB will have to send tax data directly to the French authorities rather than leaving it up to the individuals to declare the income gained on the platform. 

Registration of Property

In cities with populations bigger than 200 000, homes rented out up to 120 days a year will have to be registered with the Mairie, and the declaration number will have to be displayed on the AirBnB profile. For those whose homes are rented more than 120 days, a commercial rental license will have to be obtained. Though unlikely to affect French ski property immediately, these new regulations in may come to the alpine resorts in the future.

If you are at all worried about any of the existing or up-and-coming regulations associated with renting your property on AirBnB, please see the General Regulation section of the following page: https://www.airbnb.com/help/article/1397/responsible-hosting. 

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