A legal trick allows landlords to pay one cent of tax on the rent they receive.
A rent that evades the tax authorities. Indeed, in France there are still tricks that allow you to pocket rental benefits without paying additional taxes. It is surprising how imaginative the tax administration can be when it comes to classifying various rental incomes. Actual regime, BIC (industrial and commercial profits), micro-BIC, furnished rental, bare rental… There is no dearth of terms and tools to tax the rent received by the taxpayer.
However, certain rents are charged which are completely exempt from tax. This little-known system is accessible to a large number of people without any income conditions. In fact, all owners and even some tenants can avail it. Something to please all those who want to increase their income without increasing their taxes.
The principle is simple but little known: renting out part of your main residence allows you to collect rent without subjecting it to tax or CSG (common social contribution). Owners have the option of renting out part of their main residence, while tenants can also take advantage of the system through subletting. So this flexibility allows a wide audience to benefit from this tip.
However, to avail the benefit of this tax exemption, certain conditions need to be respected. First, the room in the dwelling occupied by the tenant or subtenant must be his principal residence. So seasonal rent is excluded from the system.
Then, in Ile-de-France, the rent must be less than a ceiling set at 206 euros per square meter (m²) and per year. In the provinces, the annual ceiling is 152 euros per m². This ceiling is determined by the tax administration every year and is calculated net of charges.
Furthermore, the rented part must be an integral part of your main residence and cannot be used independently, as is the case for a maid’s room with a private entrance. Finally, the rented space must respect the criteria of decency, such as windows and a ceiling height of at least 2.20 meters.
Clearly, if a taxpayer rents or sublets 35 m² of their home in the Paris region, they will be able to collect up to 7,210 euros per year, without paying taxes or social security contributions. Specifically, he will receive a rent of 600 euros per month. Another example, a room of 10 m², can be rented or sublet in the provinces for 1,520 euros per year or 126 euros monthly. In short, renting out or subletting a portion of your principal residence can generate additional income while avoiding real estate taxes.
