Anyone who rents a room or rooms of his residence to tourists or short-term visitors is exempt from tax if the annual rents total does not exceed € 760, and may combine this with the exemption granted if renting part of his principal residence for a “reasonable rent”.
Tax exemption requirements when renting out a B & B
Three conditions must be met to qualify for this exemption:
- the furnished rented room must be part of the owner’s main home;
- the occupier must not be a residential tenant;
- the amount of annual income must not exceed € 760. The revenue to be taken into account must include the total money received on the actual rental and special services provided (breakfast, phone, etc.), and must also include all taxes.
Where the 760 € ceiling is exceeded, taxpayers are taxed on all rents and charges accruing from the furnished rental. These are then regarded as industrial and commercial profits.
Renting a B & B: accumulated exemptions
The B & B exemption can be added on to the exemption available when an owner rents out part of his main home (link). Thus, an owner can rent part of his principal residence to a student or undergraduate during the academic year, and to tourists during the summer.
If the rent charged to a student is set within reasonable limits (that is to say, does not exceed the ceiling set for 2016 at € 184 / m² / year in Ile de France and 135 € / m² / year in other regions), and the annual revenue from tourist rentals does not exceed € 760, the owner will then benefit from both exemptions.