As a reminder, revenue from renting out furnished properties falls under the industrial and commercial profits category. To declare revenues from renting out properties, private landlords of furnished rentals have a choice between the micro-BIC regime, which is very easy to use, and the standard (or réel) regime, which is more complex on an administrative level.
While the Observatoire Clameur has revealed that rent prices of unfurnished rentals have slightly declined by -0.6%, Lodgis, an estate agency specialised in furnished rentals in Paris, has announced in its latest barometer that there has been a slight increase of +0.6% in the rent prices of furnished rentals in Paris in 2017 (-0.4% for the first eight districts and +1.8% for the 9th to 20th less central districts). Furnished rentals are therefore doing well, and have been for the fifth year in a row (+0.36% between 2012 and 2013, +0.17% from 2013 to 2014, +0.63% in 2015 compared to 2014, +0.4% between 2015 and 2016 and +0.4% in 2017 compared to 2016).
Here we are at the beginning of the year, the perfect time to take stock of how the 2018 finance bill will affect the real estate tax system. What are the changes and how will they impact the real estate market? Read on to find out.
As I explained in my previous article Furnished rentals: the advantages of the Micro-BIC system, revenue from furnished rentals are taxed as Industrial and Commercial Profits (BIC), which is fiscally a lot more advantageous. After having considered the advantages of the Micro BIC system, mainly that it is easier to use, I’d also like to discuss the advantages of the simplified réel system which is often more favorable to non-professional landlords or furnished rentals…
Following the law for a digital republic, from now on the Tourism code stipulates that the town councils of cities with over 200,000 inhabitants can implement registration for short-term furnished rentals for tenants not taking up residence.
Consequently, from the 1st December 2017, the registration number should appear on online advertisements and rental contracts for furnished apartments rented to tourists in Paris. This measure should be applied in Bordeaux from the 1st March 2018.
I’m happy to announce that the 4th edition of the “Guide to Furnished and Seasonal Rentals” comes out today!
Written for a wide audience, this guide is perfect for landlords who would like to rent out a furnished property throughout the year or just for a few weeks a year. It explains all the important legal regulations to know, practical advice to rent out a property (choice of accommodation, the furniture and services to provide, the administrative procedures to carry out, etc.) as well as the tax advantages of a furnished rental.