Decryption – Ambiguity regarding the taxation of Airbnb rentals is troubling for owners who don’t always know which tax regime to choose. An update on what you need to know.
It’s a funny mistake. Last December, the government used 49-3 to pass the 2024 budget. Problem: Within this budget is a text that aligns all tax regimes for furnished rentals (short and long term) with vacant rentals. For furnished rentals, tax reductions on rental income can rise to 50% or even 71% in the case of so-called “classified” accommodation (rural lodges, guest rooms or even “star” apartments) up to a limit of 77,700 euros. Rental income. On the contraryThe tax regime for vacant rentals, which the government plans to normalize, is much less favorable: a 30% reduction, up to a €15,000 rental income limit for owners who have opted for a flat-rate regime (as opposed to a real-price regime).
Enough for owners who earn more than 15,000 euros per year and who could be big losers from this reform. “If the reduction is reduced to 30%, the owner, who earned 15,000 euros in 2023, will have to pay 1,416 euros more in tax in 2024 compared to a 50% reduction. In the case of an owner earning 50,000 euros, the additional tax should be more than 4,700 euros (if we take the average income tax rate of 30%).», underlines Aurelie Sultan, lawyer specialist in wealth taxation at Demeuzoy Avocats. This unprecedented situation is enough to create confusion in the minds of owners who had to make a crucial choice while declaring their income from April. So, which tax regime should you choose and what strategy should you adopt?
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