Who is affected by Airbnb income taxation?
Private landlords: Declaration from the first euro
Any individual renting out part or all of their property on Airbnb is subject to income tax. This includes occasional rentals of primary, secondary residences, or any other property. Even if you rent only one or two nights per year, the income generated must be declared from the first euro, without exception.
Professional landlords: Increased obligations
If you generate significant income, exceeding €23,000 per year, you may be considered a professional landlord. This status entails additional tax obligations, such as registration with the self-employed social security system and payment of social contributions on top of the regular tax.
Automatic income transmission by Airbnb
Since 2020, Airbnb is required to automatically transmit the income received by its users to the tax authorities. Whether you are an individual or a professional, the amounts declared to the administration are therefore automatically checked, which limits the risk of undeclared income without consequences.
Penalties for non-declaration
Failing to declare income from Airbnb rentals can lead to a tax adjustment. The tax authorities can recover unpaid taxes, with penalties of 10% and late interest. In cases of proven fraud, sanctions can be even more severe.
The micro-BIC regime: a simplified option
Suitable for small rental income
The micro-BIC regime is designed for landlords with rental income under €77,700 per year. This threshold allows for reduced taxation, simplifying administrative steps and offering an advantageous calculation for those who rent occasionally or with modest income.
Simplified declaration
With the micro-BIC regime, declaring your income is very straightforward. You just need to declare your gross rental income in the appropriate tax form (box 5ND of the 2042C PRO declaration). The tax authorities automatically apply the deduction, without requiring complex calculations or expense deductions.
Partial exemption for small income
If your rental income does not exceed €305 per year, you benefit from total exemption from tax on these earnings. However, even below this threshold, it is important to declare your rental income to stay compliant with the tax authorities.
The actual regime: for higher income
Mandatory regime above €77,700 of income
When your annual rental income exceeds the €77,700 threshold, you are automatically subject to the actual regime. This regime also becomes relevant if your rental-related expenses are high, as it allows you to deduct all actual expenses incurred.
Deduction of actual expenses
The main advantage of the actual regime is the ability to deduct all expenses related to your rental activity, such as management fees, maintenance work, loan interest, or property taxes. This can be particularly beneficial if your expenses exceed 50% of the deduction offered by micro-BIC regime.
More complex management
Contrary to the micro-BIC regime, the actual regime involves more rigorous accounting. You must keep all receipts for your expenses and fill out a more detailed tax declaration (form 2031 SD). It is often advisable to seek professional help from an accountant to assist you and optimize your tax situation.
More advantageous taxation for high charges
If your deductible expenses are significant, the actual regime can be more advantageous than micro-BIC. By deducting your actual expenses, you reduce your taxable base, which can limit your taxation, especially if your expenses constitute a large part of your rental income.
Comparison of tax regimes: micro-BIC vs. actual regime
| Criteria | Micro-BIC regime | Actual regime |
|---|---|---|
| Annual income | Below €77,700 | Above €77,700 |
| Deduction | 50 % on gross income | None |
| Deduction of expenses | No | Yes (actual expenses) |
| Accounting obligations | Simple (online declaration) | Complex (expense declaration) |
| Recommended for | Occasional landlords | Landlords with high expenses |
How to declare Airbnb income?
Declaration under the micro-BIC regime
If you are subject to the micro-BIC regime, declaring your Airbnb income is straightforward. You need to report the gross amount of your collected rents, without deducting expenses. The tax authorities will automatically apply a 50% deduction to these earnings, reducing the taxable base. Declaration is made via form 2042C PRO, in box 5ND for the income received.
Declaration under the actual regime
If you fall under the actual regime, declaration is more detailed. You must indicate your net rental income after deducting expenses such as management fees, work, interest, and taxes. This regime allows for more favorable taxation if your expenses exceed the micro-BIC deduction threshold. You need to fill out form 2031 SD to detail your income and expenses.
Automatic transmission obligation by Airbnb
Since 2020, Airbnb automatically transmits the income received by users to the tax authorities. This transmission allows the tax office to verify declared amounts and ensure all rentals are properly declared. It is therefore important to ensure your declarations are conformant with the income received on the platform.
Online or paper declaration
You can declare your Airbnb income either online via your account on the tax website or on paper. Online declaration is often easier and quicker, allowing real-time monitoring of your tax file status.
What is the tax rate on Airbnb income?
Taxation based on your tax bracket
The tax rate on your Airbnb income depends directly on your bracket. In France, income is taxed progressively. For example, if you are in the 30% bracket, your rental income will be taxed at that rate after applying the 50% deduction in the micro-BIC regime. This means only half of your income will be taxed.
Mandatory social contributions
In addition to income tax, Airbnb income is also subject to social contributions, amounting to 17.2%. These are applied to net income after deduction or expenses. They apply to all landlords, regardless of their fiscal regime (micro-BIC or actual).
Tax rate for 2024
The progressive tax scale for 2024 includes several brackets:
| Income bracket | Tax rate |
|---|---|
| Up to €11,294 | 0% |
| From €11,295 to €28,797 | 11% |
| From €28,798 to €82,341 | 30% |
| From €82,342 to €177,106 | 41% |
| Over €177,106 | 45% |
Thus, the rate applied to your rental income depends on your overall fiscal situation, considering both Airbnb earnings and other income.
Example of tax calculation
If you earned €10,000 from Airbnb, the 50% deduction of micro-BIC law will reduce the taxable base to €5,000. If you fall into the 30% bracket, your tax on this income will be €1,500 (30% of €5,000), plus social contributions of 17.2% (€860), for a total of €2,360.
Possible exemptions for certain rentals
Exemption for renting out a room in the primary residence
It is possible to benefit from an exemption from taxes if you rent one or more rooms of your main residence on Airbnb. For this, your rental income must not exceed €760 per year. This exemption allows you to avoid paying tax on these earnings, as long as you stay below this threshold. However, if this amount is exceeded, all income becomes taxable.
Exemption for small seasonal rentals
If you rent out a room or property for short stays, especially to seasonal workers, you can also be exempted if certain conditions are met. These rentals must be carried out under “reasonable” conditions, and the room must be your main or temporary residence.
Declaration obligation despite exemption
Even if you are exempted from taxes on your Airbnb income due to the €760 threshold or other criteria, declaring these earnings remains mandatory. This requirement allows the tax administration to track all income received and ensures compliance with current fiscal regulations.
Example of applicable exemption
If you rent out a bedroom in your primary residence and earn €700 for the year, you will be exempt from tax on that income. However, you must still declare it in your annual tax return to comply with tax obligations, although you will pay no tax on that amount.
Exemptions based on the type of rental
| Type of rental | Conditions | Tax exemption |
|---|---|---|
| Rental of primary residence (bedroom) | Income <€760 per year | Yes |
| Rental of secondary residence | Income <€305 per year | Yes |
| Rental of rooms to seasonal workers | Furnished rental with “reasonable” rent | Yes |
The tourist tax, an additional obligation
Mandatory collection of the tourist tax
As an Airbnb host, you are required to collect the tourist tax from your tenants. This tax is paid directly by the travellers and varies depending on the municipality where your property is located. It is intended to finance local tourism development, and its application is mandated by most local authorities.
Amount varies according to location
The amount of the tourist tax depends on several factors, including the type of accommodation (apartment, house, guest room) and the municipality. Some cities or tourist regions impose higher tariffs due to their attractiveness. It is important to check local regulations to know the exact amount you must apply.
Airbnb makes management of the tax easier
To simplify this obligation, Airbnb automatically collects the tourist tax for you in most cities. This means the platform deducts the tax directly from tenants and remits it to the relevant municipality, saving you from handling it yourself. However, it is recommended to verify if this service is active in your city, as some municipalities still require manual management.
Transparency for tenants
Tenants are informed of this tax at the moment of their reservation on Airbnb. The amount is clearly stated in the final invoice, helping to avoid misunderstandings. The tourist tax amount is added to the rental fees and does not constitute taxable income for you as a host.
