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Rentals via Airbnb have exploded! It is a very good idea to round off the ends of the month. But this uberisation of the rental did not escape the tax administration. A tax framework for rental income has been in place since July 1, 2016. Individuals must now declare their income from the first euro cashed. If you rent a property on Airbnb, it is wise to read more...

Airbnb Revenues: Regulations since July 2016

Until July 1, 2016, revenues from Airbnb rentals were exempt from tax. But now, the income is to be declared and taxable. The administration acted and responded to the anger of professional hoteliers who denounced unfair competition.

Since the 2016 Finance Act (law 2015-1785 art.87), collaborative platforms such as Airbnb have the obligation to address the summary of the tax situation individuals registered on their site. All individuals will have to declare their rental income. The platforms are now required to send their users a statement of the amounts to be declared to the taxes, so no one will no longer be able to claim to ignore this administrative duty.

How to declare my Airbnb earnings?

We can not advise you too much report all rental income collected. Indeed, collaborative platforms are in the sights of the tax administration. And, the trend is not likely to reverse in time. However, the reporting regime remains simplified provided that the income does not exceed € 32,900 per year. Beyond this threshold, you must subscribe to a professional declaration. But generally, Airbnb rental revenues to report are lower than this amount.

This revenue from Airbnb rentals is to be reported generally in the category industrial and commercial profits (BIC). It is enough to directly post the sums collected on the tax return. The tax authority then calculates the taxable amount after applying a standard abatement (50% for BICs).

A 50% discount

If income does not exceed 32,900 euros a year, the tax authorities apply a 50% flat rate allowance. You will therefore be taxed on only half of the rents collected.

In summary
The platforms must obligatorily transmit to the Net surfers a statement of the rental revenues collected as of July 1st, 2016. This one will be addressed each beginning of year.
Income is to be declared and taxable in the BIC category if the total does not exceed 32,900 euros per year.

Video Instruction: File Airbnb Tax as Passive or Active Income? [Airbnb Entrepreneur Podcast #8 ]