What is the tax regime for incomes generated by the rental of real estate properties?

It is essential to distinguish the land from the industrial and commercial income. Indeed, even though both correspond to earnings generated by the rental of real estate properties, empty or bare rental incomes are land incomes whereas furnished rental incomes are industrial and commercial profits (BIC). It is important to note the difference since there are different tax regimes.

Rental income : report it under micro or actual tax regime?

Whether it is with regards to land income or industrial and commercial profits (BIC), each of those categories propose two different tax regimes to chose for the reporting of your rental incomes : the micro and the actual.

Under the micro land income there is a lump-sum allowance of 30 % ; under the micro BIC it is of 50 % (71 % when the property is classified furnished for tourism).

Under the actual tax regime, not only the charges induced by the property are deductible at the land income regime, but also allows at the actual BIC regime to amortize the property (approximately 3 % of its value per year) and also amortize the acquisition of the property (notary expenses, etc.) under certain circumstances. This does importantly reduce the taxation on rental incomes.

As a result it is necessary to chose your tax regime wisely to report your rental income because this will have a tremendous impact on the income taxation.

A découvrir : Infographie Lodgis : Rentabilité location meublée versus location vide
L’infographie créée par Lodgis pour illustrer de manière chiffrée et visuelle l’imposition des revenus de la location d’un appartement et le bénéfice net dégagé en fonction du régime fiscal choisi.

 

 

 

 

 

 

 

 

 

 

A lire également :

  • Les revenus tirés de la location meublée constituent des bénéfices industriels et commerciaux (BIC)
  • Les revenus générés par la location vide constituent des revenus fonciers

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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

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