Good news: tax authorities have delayed the tax deadline by 15 days… Private landlords of furnished rentals now have until 18th May 2018 to declare their income from furnished rentals from 2017 using the simplified standard regime.

As a reminder, in 85% of cases, the standard regime is more beneficial than the micro BIC regime and allows landlords of furnished properties to make significant tax savings.

Why?

Whilst the micro BIC regime offers an allowance of 50% (or 71% in the case that the property is classed as a tourist rental), the standard regime allows you to amortize the property, furniture and works, and deduct all expenses related to the activity. But the sum of these costs and deductible amortisations is often greater than 50% of the annual revenue.

For who?

This year, the people who can declare their income from furnished rentals from 2017 using the standard regime from now until 18th May are:

  • Taxpayers who have already declared their rental income from 2016 using the standard regime, as well as those whose revenue from furnished rentals is more than €70,000 per year.
  • Landlords who began their furnished renting activities in 2017. They have until the filing date of their first declaration of rental income, which is 18th May 2018, to exercise the option of using the standard regime by attaching their tax return, which consists of their declaration to the standard regime, and a necessary letter to exercise this option.

Good to know!

To help landlords to choose the most advantageous tax regime, the jedeclaremonmeuble.com website (only in French) provides users with a free simulator to calculate the tax savings between the two regimes according to the personal situation of the landlord (value of the property, bills, rents).
Jedeclaremonmeuble.com also offers lots of advice as well as 2 services to help landlords declare their rental revenue using the standard regime.

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About me

Maud Velter
Maud Velter
Legal & practical advice for furnished rentals
Associate and Legal Director of Lodgis, furnished rentals and property law specialist