From now on, the owners of furnished rentals earning more than 23 000€ per year from renting out their properties are required to join the RSI regime (Social Regime for Self-employed Persons). Exceptionaly, those people can opt for the general security regime.
The obligation to join the RSI if the short-term furnished rental activity generates more than 23 000€ per year
The article 18 of the Social Security Financing Act for 2017 requires the owners earning more than 23 000€ per year from renting out their furnished property, on a short-term basis, repeatedly, to temporary visitors, to join the RSI regime.
Therefore, from January 1st of 2017 on, beyond 23 000€ annual earnings from short-term furnished rentals, will be considered as activity revenues.
The contribution base corresponds to the net income. If the latter is null, the taxpayer will have to pay the amount of minimum dues (1045€/yearly).
Below this 23 000€ threshold, the rental incomes will still be considered as property incomes subjected to social deductions (CSG/CRDS) at a 15,5% rate.
The possibility to join the general social security system
By way of exception, the landlords (LMNP) can choose to join the general Social Security System, under the condition of not exceeding the duty-free regime limits of the VAT base, that is to say 82 800€ (CGI, art. 293 B, I, 1°, a and b).
If choosing the general scheme for employed persons, the dues and contributions for the Social Security System the landlords owe are calculated accordingly to the contribution base of their incomes reduced by an allowance of 60 %.
For the touristic furnished rentals classified within the meaning of the Tourism Code (art. L 324-1 Tourism Code), there is a 87% allowance.
The option to join the general Social Security Regime isn’t opened to landlords of professional furnished rentals.
To keep the landlords informed about their obligations, the Ministry of Economy posted an educational sheet online about the subject called «Should I pay social contributions for renting out my furnished property?» (in french).