The income induced by furnished rental is part of the industrial and commercial profits (BIC)

During the reporting of land income, it is frequent that the lessors property owners mistakenly report their income induced by furnished rental in the land income category (valid for empty rental), whereas this income are recognized as industrial and commercial profits (BIC), most often more advantageous to the owner. Indeed, may he benefit from micro BIC tax regime with 50 % of lump-sum allowance or from the normal regime , the property lessor of a furnished property usually benefits from it.
Read more

The incomes generated by empty rental are land incomes

The property owners that rent their empty or bare properties, that is not furnished, must report their income in the land income category (in opposition to the furnished rental incomes that belong to the industrial and commercial profits – BIC category).
It is essential to differentiate in the land income category the micro-property tax regime that provides a lump-sum allowance of 30 % from the actual tax regime that allows to deduce charges for their real and justified amount, as well as to know that you can pass from tax regime to another under certain circumstances.

Read more

Rental income: land income or industrial and commercial profits (BIC)?

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).
Read more

About me

Maud Velter
Maud Velter
Legal & practical advice for furnished rentals
Associate Director of Jedeclaremonmeuble.com