Slide 1 of 1

Airbnb taxation decoded for those still trying to put 'Memento's scenes in order.

Understanding Airbnb taxation can sometimes feel as bewildering as following the plot of Memento, Christopher Nolan's famous film where reality is fragmented and chronology upended. Just like Leonard Shelby, the protagonist who must piece together a puzzle to uncover the truth, Airbnb owners often find themselves navigating a maze of tax regulations, deductions, and declarations, desperately trying to make sense of their fiscal situation. Fear not, this article is here to simplify Airbnb taxation, no need for memorial tattoos or Polaroids. Prepare to demystify tax complexities with the same ease as if you were following the linear storyline of a classic film, far from Nolan's twists and temporal reversals.

Hoterie - Memento illustration - 2

Fundamentals of Airbnb taxation.

Short-term rentals, especially through platforms like Airbnb, have become a favored source of income for many owners worldwide. However, navigating the sometimes murky waters of the taxation associated with these revenues can prove complex. This chapter aims to demystify the basic principles of furnished rental taxation, focusing on the tax regimes in France, the available deductions, and exemptions.

Introduction to the taxation of furnished rentals

The taxation of furnished rentals in France is governed by specific rules that classify these revenues in the category of industrial and commercial profits (BIC). Whether you are an owner or a tenant making a property available on Airbnb, you are required to declare the rents received to the tax administration. This obligation remains, regardless of the amount generated, from the first euro received. To learn more, visit the official tax website.

Understanding tax regimes

The tax regime applicable to your Airbnb income essentially depends on the annual amount generated.

The micro-BIC regime is automatically applied for annual revenues below €70,000. This regime offers a flat-rate deduction of 50%, representing the expenses related to the rental activity. Thus, if Elena, an owner of an apartment in Paris, generates €30,000 in annual revenues via Airbnb, she benefits from a deduction of €15,000. Her taxable income thus amounts to €15,000, on which social contributions (17.2%) and income tax according to her marginal tax bracket will apply.

The real regime applies when revenues exceed the threshold of €70,000 or at the option of the lessor, even below this threshold. This regime allows for the deduction of actual and justified expenses related to the rental activity, potentially offering a lower taxable base. However, it requires detailed accounting and the preservation of expense receipts.

Concrete example of Elena

Micro-BIC Regime

  • Annual revenues: €30,000

  • 50% deduction (applicable under the micro-BIC regime): €30,000 * 50% = €15,000

  • Taxable income: €15,000

Income Tax Calculation:

  • Taxable income: €15,000

  • 30% tax rate: €15,000 * 30% = €4,500

Social Contributions Calculation:

  • Taxable income: €15,000

  • 17.2% rate of social contributions: €15,000 * 17.2% = €2,580

Total taxes and social contributions to be paid: €4,500 + €2,580 = €7,080

Real Regime

Under the real regime, Elena can deduct her actual expenses. Let's assume she has the following expenses:

  • Concierge fees: €5,000

  • Accounting fees: €1,000

  • Other charges (electricity, water, internet, insurance, etc.): €3,000

Total deductible expenses: €5,000 + €1,000 + €3,000 = €9,000

  • Annual revenues: €30,000

  • Total deductible expenses: €9,000

  • Taxable income after deduction of expenses: €30,000 - €9,000 = €21,000

Income Tax Calculation:

  • Taxable income after deduction: €21,000

  • 30% tax rate: €21,000 * 30% = €6,300

Social Contributions Calculation:

  • Taxable income after deduction: €21,000

  • 17.2% rate of social contributions: €21,000 * 17.2% = €3,612

Total taxes and social contributions to be paid under the real regime: €6,300 + €3,612 = €9,912


Opting for the micro-BIC regime, Elena would have to pay €7,080 in taxes and social contributions. Under the real regime, with the specific deductions mentioned, she would have to pay €9,912. This illustrates the importance of choosing the right tax regime based on your personal situation and actual deductible expenses, as in this example, the micro-BIC regime proves to be more advantageous for Elena.

Deductions and exemptions

Besides the tax regimes, certain deductions and exemptions may apply under conditions.

  • Exemption for low incomes: Owners generating less than €305 in annual revenues are exempt from tax.

  • Renting out the principal residence: Revenues from renting out a part of the principal residence are exempt from tax up to €760 per year.

  • Classified furnished tourist accommodations: These properties benefit from a flat-rate deduction of 71% on the rents collected up to €170,000 per year.

The taxation of furnished rentals via Airbnb may seem intimidating at first glance. However, a clear understanding of the tax regimes, deductions, and exemptions available allows owners to comply with their obligations while optimizing their tax burden. Whether you opt for the micro-BIC regime or the real regime, the essential thing is to document your income and expenses well and stay informed of legislative developments that could impact your tax situation. For optimal management, do not hesitate to consult a professional or use the services of a specialized concierge service.

How to declare your Airbnb income?

Declaring income from renting via Airbnb is a crucial step for any owner. It ensures compliance with tax obligations and helps avoid penalties. This chapter guides you through the different stages of the declaration, from automatic transmission by Airbnb to the specifics of ticking boxes, and highlights the importance of support from an accountant.

Hoterie - Memento illustration - 3

Automatic Transmissions from Airbnb

Since 2020, Airbnb has been required to transmit to the French tax administration the income earned by its users, thus facilitating the declaration process for hosts. For users generating more than €1,000 on the platform, identity verification is required. Gross income, including the rental price, cleaning fees, and host service fees, is accessible via a CSV file downloadable from your Airbnb user space. This automation aims to simplify the declaration of rental income while ensuring greater transparency with the tax administration.

Which Boxes to Tick?

When declaring your Airbnb income, the choice of tax regime is crucial. For revenues below €77,700 per year, the micro-BIC regime is often the most advantageous, allowing for a 50% flat-rate deduction on gross income. Income must be declared in box 5ND for the person receiving the rental income. For those opting for the real regime, due to annual rental income exceeding or for a more advantageous deduction of actual expenses, form 2031 SD must be used. This choice should be evaluated based on your specific situation, considering deductible expenses and the flat-rate deduction (source).

Hiring an Accountant

Although an accountant is not mandatory for owners opting for the micro-BIC regime, their intervention becomes crucial for those choosing the real regime. Furnished rental under the real regime requires precise accounting, including maintaining a simplified balance sheet, an income statement, and the result declaration via Cerfa form 2031, among others. The accountant assists you in these procedures, ensures the compliance of your declarations, and optimizes your tax situation. The feesof an accountant, although variable, represent a wise investment for securing and optimizing the fiscal management of your rental property. Moreover, a tax reduction of 66% of the fees paid to the accountant is possible, up to €915, under certain conditions.

Declaring Airbnb income requires careful attention to detail and a good understanding of the available tax options. The automatic transmission of income by Airbnb simplifies part of the process, but selecting the appropriate tax regime and correctly filling out the tax forms remain crucial. The support of an accountant, especially for those opting for the real regime, is strongly recommended to navigate confidently through the complex tax landscape of furnished rentals.

"Loi Finance 2024": much ado about nothing.

The Finance Law for 2024 has sparked strong reactions, particularly due to changes made to the tax deduction on furnished tourist rentals, such as Airbnb. However, a recent government decision seems to temporarily pause these changes, leaving owners in a situation of uncertainty but with an unexpected opportunity.

At the origin of the controversy

Last fall, an amendment adopted in the 2024 budget, initiated by senators from various political backgrounds, reduced the tax deduction on furnished tourist rentals to 30% instead of 71% in tense areas. This decision, aimed at aligning the taxation of furnished tourist rentals on a more equitable basis, was adopted despite the government's preference for a 50% deduction rate. In the legislative turmoil, this article was mistakenly passed.

The government's response

Faced with this situation, the government announced its intention to "correct" this error, potentially through a rectifying finance law. However, a simpler solution was found: a note from the Official Bulletin of Public Finances recently published allows taxpayers to use the previous rate for 2023 revenues, despite the Finance Law. This note enables concerned taxpayers to apply the provisions prior to the Finance Law for 2024 to their 2023 revenues, thus giving them the freedom to act as if this new law did not exist for the time being. This temporary decision suggests that the next Finance Law, for 2025, could cancel the mistake made.

Reactions and consequences

This unexpected freedom granted to owners of furnished tourist accommodations has elicited mixed reactions. On one hand, the Umih (Union of Trades and Hospitality Industries) expresses its incomprehension and regrets that the advances obtained in the Senate do not apply to 2023 revenues, allowing owners to opt for a more favorable tax regime. On the other hand, this decision is contested by Communist Senator Ian Brossat, who has already initiated an appeal before the Council of State. This situation illustrates the complexity and challenges associated with regulating the taxation of furnished tourist rentals, in a context of an exacerbated housing crisis.

Although the Finance Law for 2024 initially introduced significant changes in the taxation of furnished tourist rentals, a recent government note offers taxpayers a temporary pause. This decision, although controversial, highlights the difficulties of implementing fiscal policies in a rapidly evolving sector. Furnished tourist rental owners thus find themselves in a waiting position, hoping that future clarifications will provide them with a more stable direction.

The role of the concierge service in all this?

In the fluctuating context of the taxation of furnished tourist rentals, the role of a concierge service becomes more relevant than ever. Hoterie, as a leader in the management of seasonal rental properties, offers a range of services designed to maximize owners' profitability while ensuring flawless management and an exceptional customer experience.

Hoterie - Memento illustration - 4

Reinventing property management

Hoterie stands out for its ability to transform real estate properties into top-choice rentals. Our comprehensive service includes enhancing each property with artistic photography, writing elegant ads, and refined communication with travelers. By adopting a dynamic pricing strategy and providing excellent services, from housekeeping to laundry, to personalized guest welcomes, Hoterie aims to redefine the seasonal rental industry.

The concierge service's role regarding owners' taxation.

Although the concierge service does not replace the advice of an accountant, it plays a crucial role in simplifying the fiscal management of owners. By providing accurate documentation and sources on the generated income and associated rental expenses, Hoterie facilitates the tax declaration process for owners. This meticulous documentation is essential for optimizing tax declarations and potentially maximizing available tax deductions.

Assistance and advice

Hoterie also offers assistance in tax regulation, informing owners of the latest legislative and fiscal developments that could affect their rental. While we do not provide direct tax advice, our expertise in property management allows us to guide owners to the right resources and help them understand the potential impact on their investment.

Maximizing profitability

By optimizing the visibility and attractiveness of ads, dynamically adjusting rates based on the market, and ensuring high-quality customer experiences, Hoterie helps owners maximize their rental income. These optimized revenues, properly documented, facilitate tax declaration and contribute to better tax planning.

Strategic partnership

Ultimately, partnering with Hoterie represents much more than mere property management. It is a strategic collaboration aimed at maximizing profitability while confidently navigating the tax landscape of seasonal rentals. Our commitment to excellence and customer satisfaction makes us the ideal partner for owners looking to get the most out of their real estate investment.

In an environment where the taxation of furnished tourist rentals is constantly evolving, partnering with a concierge service like Hoterie can offer owners peace of mind and the certainty that their property is optimally managed, both from a customer experience and fiscal profitability perspective.

Last words.

In conclusion, navigating through the intricacies of Airbnb taxation, while staying compliant with legal obligations, can seem as complex as deciphering a Christopher Nolan screenplay. However, armed with the right information and perhaps the assistance of a competent concierge service, owners can not only simplify this process but also optimize their tax situation. Like in Memento, where each piece of the puzzle eventually finds its place, understanding the nuances of short-term rental taxation allows building a profitable and serene strategy. Thus, even without resorting to extreme mnemonic methods, you can ensure that your Airbnb venture remains profitable and compliant, leaving you free to focus on what truly matters: providing an exceptional experience for your travelers.

Airbnb taxation decoded for those still trying to put 'Memento's scenes in order.
March 27, 2024, Hoterie

Choosing an online accountant or a traditional accountant for managing my Airbnb taxation?

What are the risks if I don't declare my Airbnb income?


Hoterie - FEV - Bedroom


The mobility lease for dummies: renting all year in high-demand areas.

Explore the mobility lease, a flexible rental solution perfect for high-demand areas, ideal for both landlords and tenants on the move. This guide provides insights into the benefits, conditions, and simplified procedures, making it a great alternative to traditional leases.

Read more
Hoterie - FEV - Main photo


Feval House

Discover the magic of Montmartre in this charming 32 m² apartment. Featuring a bright living room, a fully equipped open-plan kitchen, and a master suite separated by a stunning glass partition. Two large windows fill the apartment with natural light, and custom-made furniture adds a touch of elegance. Located in a quiet cul-de-sac, just steps away from the bustling attractions of Montmartre, this haven offers the best of both worlds. Just unpack and enjoy.

Read more
Hoterie - Pasteur House - Bedroom office


Skylight rue Pasteur.

Dive into the unique charm of Montreuil, a vibrant district on the outskirts of Paris, and let yourself be seduced by a bright and elegantly arranged apartment. Expertly managed by Hoterie, this accommodation promises an exceptional stay experience, combining modern comfort with privileged access to local culture and gastronomy.

Read more
Hoterie - Casino illustration - 1


Simplifying Airbnb: a guide for first-time hosts.

Discover how to turn your property into a lucrative income source without falling into the classic pitfalls of short-term rentals. From optimizing your listing to selecting the ideal management partner, this article is your ultimate guide to succeeding on Airbnb.

Read more
Interior Design 3 - Hoterie


Hoterie's Terms and conditions

Hoterie's terms and conditions.

Read more
Hoterie - Bedding illustration


Sleeping on a cloud: choosing the perfect sheets for a dreamy night.

Discover the secrets to transform your nights into a true waking dream with our ultimate guide on choosing the perfect sheets. From the softness of Egyptian cotton to the coolness of linen, dive into a world where every detail counts for an ideal night's sleep. Click to find out how to choose the bedding that will transform your bed into a cloud of comfort.

Read more
BELL - Living - Main


la Maison Poissonnière

Experience the refined charm of "La Maison Poissonnière", a sophisticated Parisian getaway nestled in the vibrant 9th district. Perfect for discerning travelers seeking to blend modern comfort with Parisian culture.

Read more
Hoterie - Salle de bain full béton ciré


Polished concrete bathroom: the new charming asset of modern homes.

Discover how polished concrete can transform your short-term accommodations into modern and elegant sanctuaries. A realm where interior design and sustainability converge. Sidestep common pitfalls and enhance every traveler's stay.

Read more
Boinod - Bedroom 1 - Overview


Montmartre Cabin houses

Nestled within the vibrant soul of Paris' 18th arrondissement, "The Montmartre Cabin Houses" is an open invitation to sheer exclusivity. Straddling the line between tradition and modernity, this apartment promises an urban retreat in the heart of Paris, offering a fine balance between timeless luxury and contemporary comfort. With its idyllic location at Marcadet/Jules Joffrin, within easy reach of Pigalle and Montmartre, it's an escape into a less-traveled but equally captivating Paris. Adorned with carefully curated artwork and cutting-edge architectural design, it's an ode to elegance.

Read more
Interior Design 3 - Hoterie


Legal notice

Hoterie's legal notice.

Read more
Hoterie - Aircover illustration people


AirCover in the world of seasonal rentals: security for properties and hosts

Discover Airbnb's insurance program for owners, protecting Parisian property owners and contributing to a more serene rental experience.

Read more
Hoterie - Airbnb SEO illustration


Elevate your Airbnb listing: key strategies for top rankings in Paris

Unlock the secrets to propelling your Airbnb listing to the top in Paris. An essential guide for discerning property owners and travelers seeking unique experiences.

Read more
Francaise - Living - Main


La petite Française

Experience a luxurious apartment where design meets comfort in the prestigious Etienne Marcel neighborhood, right in the heart of Paris. An unforgettable Parisian living experience awaits you.

Read more
Lissac - Living room - Main


The impact of professional cleaning in your Airbnb incomes.

In the world of upscale accommodations, first impressions make all the difference. Discover how meticulous attention to cleaning and laundry can elevate the appeal of your Airbnb listing and, in turn, increase your profitability.

Read more
Boinod - Bathroom - Overview


Premium accommodations for my travel in Paris.

Embark on an unforgettable journey to the heart of Paris with the perfect high-end accommodation. Dive into the elegance, comfort, and cultural richness that define this iconic city. With Hoterie, your Parisian experience is not just a stay; it's a deep immersion into a lifestyle of luxury and artistry. Discover how to make your visit to the City of Light absolutely extraordinary.

Read more
le Joyau de Batignolles - Le Salon


The Batignolles' Gem

Discover an exceptional retreat nestled in the heart of Batignolles, a subtle blend of Parisian elegance and contemporary comfort. This apartment, situated in a Haussmann-style residence, perfectly encapsulates the union of historical charm and modern amenities. Every nook, every decor element has been meticulously crafted to allure the most discerning travelers, seeking an authentic immersion in refined and elegant Paris. The proximity to Montmartre, bustling local markets, chic boutiques, and trendy restaurants make the experience even more unforgettable. With the accessibility of Brochant and Pont Cardinet metros, all of Paris is at your fingertips. Dive into this invitation and envision your Parisian stay in utmost sophistication.

Read more