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.
However, in 85% of cases, the standard regime is more beneficial to landlords with furnished properties, with significant tax savings!
If your income from 2017 is less than 70,000€ (32,000€ before the Finance Act of 2018), you will be subject by default to the micro BIC regime.
But you can still opt for the standard regime. For this, all you have to do is inform the tax authorities by sending them a letter to exercise this option.
There are two options:
- 1/ You began renting out your furnished property in 2017: you can attach your letter to exercise this option with your tax returns (accounting documents are necessary to declare to the standard regime) before 3rd May 2018.
- 2/ You began renting out your furnished property before 2017 and you made your last rental revenue declaration to the micro BIC regime: you have until 1st February to exercise this option which will allow you to declare your revenue from 2018 to the standard regime. (It is unfortunately too late for your revenue from 2017, which you’ll have to declare using the micro-BIC regime.
Either way, the letter to exercise this option must be sent to the business tax office which the property is attached to. To be safe, you can send it by post with acknowledgement of receipt.
Note: this option is valid for a year and is tacitly renewable for the same period.
Would you like to know the most advantageous tax regime for declaring you rental income?
Would you like to know more about the standard regime?
I would encourage you to go to Jedeclaremonmeuble.com (in French): there you will find a free simulator where you can compare the two regimes as well as lots of advice for easily declaring your rental revenues.