French Rental property services
Airbnb
Services for Airbnb property owners in France : understanding the regulations in France.
Owning and renting out a property on Airbnb in France can be a lucrative venture, but it comes with its own set of regulatory challenges. At L2A ADVISORY, we will help Airbnb hosts in France, ensuring you comply with all legal and tax requirements while maximizing your rental income.
Airbnb regulations in France are stringent and vary by city. Hosts must be aware of several key requirements to avoid penalties:
- Registration: In many French cities, you must register your property with the local town hall. This is a crucial step to ensure your rental activities are recognized by local authorities.
- Rental Limits: In certain areas, there are limits on how many days per year you can rent out your property on Airbnb. For instance, primary residences in Paris can only be rented out for up to 120 days per year. French government apply strict rules to ensure that Airbnb are acting in a fair competition with hotels and do not deregulate too much the local long term rental market, this is why significant restraints apply to Airbnb in France.
- Tourist Tax: Hosts are required to collect and remit a tourist tax from guests. The rate varies depending on the location and type of property. In most cases Airbnb will directly collect the tourist tax on your behalf and
Tax Advice for Airbnb Hosts in France
Income from Airbnb rentals is taxable in France. It’s essential to declare this income correctly to avoid issues with the tax authorities. Our team provides expert tax advice for Airbnb hosts in France, helping you navigate the complexities of French tax law:
- Income Declaration: We assist you in declaring your rental income accurately on your French tax return. This includes understanding allowable deductions and optimizing your tax position. Taxation is constantly evolving in France so you need to make sure that you are up to date.
- Social Contributions: Depending on your rental income and you other sources of income, you may be subject to social contributions. We help you understand and comply with these obligations. You may qualify as a “loueur meublé professionnel” or “loueur meublé non professionnel” and this will imply different social and tax contributions.
- VAT Compliance: VAT will apply on your Airbnb income depending on the range of services that you offer (breakfast, daily cleaning, guest reception and house linen replacement…). VAT can also apply if your rental income exceeds certain thresholds, you may need to register for VAT. Our experts guide you through the VAT registration process and ongoing compliance.
Furnished and equiped Lease in France
Furnished or equiped property rental services in France.
Renting out furnished or equipped properties in France can be an attractive option for landlords looking to offer tenants a ready-to-live-in space. At L2A ADVISORY we have a deep expertise in furnished/equipped property rental services in France, helping property owners manage their rentals and minimize their tax burden.
What is a Furnished or Equipped Lease in France?
A furnished lease, known as “location meublée” in French, involves renting out a property that includes all necessary furniture and appliances for daily living. Usually this apply for mid terms rents. An equipped lease, or “location équipée,” also includes essential household equipment, making the property immediately habitable for tenants. This is more common for short term rents.
Key Differences Between Furnished and Unfurnished Rentals
- Lease Terms: Furnished leases typically have shorter lease terms, often starting at one year with automatic renewal. Unfurnished leases usually have longer terms, starting at three years.
- Rent Pricing: Rent for furnished properties is generally higher due to the added convenience for tenants. However, this also means higher maintenance and replacement costs for the landlord.
- Legal Requirements: French law specifies a list of mandatory furnishings that must be included in a furnished rental. This list includes basic furniture such as beds, tables, chairs, and kitchen appliances.
- Ecological constraints: rent limitation due to poor ecological efficiency of the housing do not apply on rent lower than 120 days. This is good to consider for old housing for instance.
Taxation advice for furnished and equipped leases in France
One of the critical aspects of renting out an equipped property is understanding the tax implications. At L2A ADVISORY we offer specialized taxation advice for equipped leases in France. The regulation is constantly evolving, we will help you with all the tax matters such as :
- Income Tax Declaration: We help you declare rental income correctly and advise on allowable deductions to minimize your tax liability.
- VAT Compliance: If applicable, we assist with VAT registration and compliance for your equipped rental property.
- Local Taxes: We ensure that you comply with all local taxes, including property taxes and any applicable tourist taxes.
One of the key elements compared to regular long term unfurnished rent is the capacity to deduct a part of the amortization of the housing/building. Our team provides expert taxation guidance for furnished leases in France to help you navigate these complexities and to choose the best option between micro and real tax regimes as well as social contributions:
- Micro-BIC Regime: For rental income below a certain threshold, you may qualify for the Micro-BIC tax regime, which offers a standard deduction for expenses. We help you determine eligibility and compliance. This is applied for small rents or useful if you don’t have many costs to deduct.
- Real Regime: For higher rental incomes, the real regime allows you to deduct actual expenses related to the rental. We provide detailed guidance on allowable deductions and record-keeping.
- Social Contributions: We advise on social contributions applicable to rental income and assist in calculating and declaring these amounts. You may qualify as a “loueur meublé professionnel” or “loueur meublé non professionnel” and this will imply different social and tax contributions.
Commercial real estate
Taxation guidance for offices and commercial in France
Investing in commercial real estate in France offers numerous opportunities for foreign investors looking to expand their portfolio in offices of shops real estate assets. At L2A ADVISORY we provide comprehensive advice on the various investment structures available, helping you make informed decisions that align with your financial goals and navigate your tax options.
Direct Ownership
One of the simplest ways to invest in commercial real estate in France is through direct ownership. This involves purchasing property as an individual investor. While this approach offers full control over the investment, it also comes with direct responsibility for management and maintenance and direct taxation of the real estate income with limited possibilities to deduct amortization costs.
Owning Through a Company
Another popular option is to own commercial real estate through a company. This structure can offer several benefits, including potential tax advantages, better debt financing possibilities and limited liability. There are different types of companies you can use for this purpose, each with its own implications.
Managing the commercial lease with a tenant.
Commercial lease are subject to complexe law requirements and constraints. You should pay great attention to the preparation of your lease agreement. We are collaborating with expert real estate lawyers in order to help you on this kind of issues.
Unfurnished lease in France
Unfurnished lease in France Tax advisory and compliance.
Nature and Length
An unfurnished long-term housing lease, known as “location vide,” is a popular choice for tenants seeking stability and landlords seeking steady income. These leases are characterized by:
- Nature: The property is rented without furniture, and tenants provide their own furnishings.
- Length: The standard lease term for unfurnished properties is three years, renewable automatically unless the landlord provides notice to terminate the lease with a valid reason.
Legal Requirements
- Lease Agreement: A written lease agreement is mandatory, outlining the terms and conditions of the rental, including the duration, rent amount, and responsibilities of both parties.
- Security Deposit: The landlord can request a security deposit equivalent to one month’s rent.
- Notice Period: The tenant must provide three months’ notice to terminate the lease, while the landlord must give six months’ notice.
- Ecological classification: a diagnostic of ecological efficiency should be conducted with limitation of rent possibilities for housing non efficient enough.
Tax Regimes
Rental income from unfurnished properties in France is subject to taxation. Landlords can choose between two tax regimes:
- Micro-Foncier Regime
- Eligibility: This regime is available for landlords with annual rental income below €15,000.
- Taxation: Under this regime, a standard 30% deduction is applied to the rental income to cover expenses, and the remaining 70% is taxed as personal income. This amount will be subject to personal income tax at your marginal rate but also to the social contribution “prélèvement sociaux” at a 17,2% rate.
- Simplicity: The micro-foncier regime is straightforward and requires less administrative work, making it ideal for smaller-scale landlords.
- Real Regime (Régime Réel)
- Eligibility: This regime is mandatory for landlords with rental income above €15,000 but can also be chosen voluntarily by those with lower income.
- Taxation: Under the real regime, landlords can deduct actual expenses related to the rental property, such as maintenance, repairs, property management fees, and loan interest. This regime also enable to generate a carryforward of losses with specific tax loss allocation rules depending on the origin of the loss (financial interest or real estate activity). Amortization of the asset will not be feasible.
- Detail-Oriented: This regime requires meticulous record-keeping and can offer significant tax savings for landlords with high expenses.
Why Choose Us as your French rental propertyTax advisors?
- Expertise: With extensive experience in French property options and tax law, we provide reliable and accurate advice.
- Personalized Service: We understand that every Airbnb host’s situation is unique. Our services are tailored to meet your specific needs and objectives.
- Clear Communication: As an English-speaking firm, we ensure that all communication and advice are clear and easy to understand, removing any language barriers.
If you’re an Airbnb host in France looking for expert guidance on managing your property and staying compliant with French regulations, an investor willing to invest in commercial real estate in France or just in need of some help with your regular long term lease tax compliance, contact us today. Let us help you achieve success in your french real estate venture with confidence and peace of mind all in english.
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