Property taxes: changes for Airbnb rentals from 2024 (likely)

We all know that before the current housing crisis, the government is going to get involved in taxing short-term rentals. The intention is to tackle Airbnb, which is hindering long-term rentals in some major cities. But in what way? The Ministry of Finance has decided to let parliamentarians propose their options before making a final decision. What's in store for us... What the government has announced.

Remember. Bruno Le Maire, Minister of Economy and Finance, told BFM/RMC in June, "I am open to reforming Airbnb's tax policy to be in line with the tax policies of other accommodation providers. We will work and propose our options to the prime minister and the president, but I find it difficult to understand why such a favorable tax policy for Airbnb applies today. We will change that tax policy."

Taxes on rental properties: why the Ministry of Finance is fighting Airbnb's overly favorable tax policy. However, at the end of September, when the draft budget for 2024 was presented, not a single line contained a reference to the tax policy for renting furnished accommodation. Bruno Le Maire and the Deputy Minister of Public Accounts sent the issue to parliamentary debate, while reminding that the 2024 budget would deal with it.

Equalizing tax policy for tourist furnished rentals, ordinary furnished rentals and empty rentals with the same 40% discount. In the latest episode, October 7, in Le Monde, housing minister Patrice Vergriet expressed his intention to equalize the tax policy for tourist furnished rentals, ordinary furnished rentals and empty rentals with the same 40% discount.

What is the current tax policy for accommodation rented through Airbnb (or other platforms such as Abritel, Booking...)?

The lease of long-term unfurnished non-residential premises does not fall into the same tax category as a furnished lease, regardless of the term: it is not real estate income (normal rental payments), but unofficial profit. LMP, LMNP or furnished rental system.

Between 2022 and 2023, hosts can receive a 50% discount on the income generated, regardless of the type of rental (single room, full house in a primary or secondary dwelling), explains the Astrs study in a study commissioned by Airbnb regarding the income of its hosts. The simplified system, micro-BIS, as shown in the table below, is predominant among hosts, Airbnb clarifies.

If you are renting through Airbnb, Abritel, etc.

• If your annual income is below 72600.
• If your annual income exceeds 72600.

Option 1: simplified micro-BIS system.

Advantages: simplicity and an automatic 50% discount. Mandatory use of the real taxation system. Deduction of expenses in exact amounts.

Option 2: a real taxation system (as for large tenants, see above).

A simple table containing the DGFiP practical guide on short-term rental of furnished housing.

But here the government wants to take action; 50% is still much better than renting an empty space (30% discount in the micro-fund for up to 15,000 euros in annual income). The average income from renting through Airbnb is 3,086 net euros.

Hundreds of thousands of French people rent out their properties through Airbnb. In 2022, the average income for hosts from their activities on Airbnb was 3,916 euros gross (which is equivalent to 3,086 euros net after taxes and social contributions), according to a study commissioned by Airbnb France from the Astrs consultancy.

Airbnb hosts: increase in purchasing power above inflation in 2022, Astrs study for Airbnb.

What option has been chosen by the deputies at this moment?

A number of amendments regarding the tax policy for short-term rentals were submitted before the review of the 2024 budget by the finance committee. This committee ultimately chose the Horizons group's option - through amendments presented by Lisa Manier and Christophe Plassard - on Thursday, October 12. Two main principles. The first: a distinction between traditional furnished rentals (usually for several months, especially for students) and unclassified seasonal furnished rentals, including Airbnb and other platforms. Different forfeits are provided for both types of rentals. The second principle: differences in discounts based on three tiers depending on the duration and type of property: a 30% discount on the rental price for short-term furnished property rentals or unclassified or classified properties with less than 3 stars, up to 15,000 euros. A 40% discount for rentals - furnished or not - for more than 9 months, up to 23,000 euros for unfurnished and 46,000 euros for furnished properties. This is better than the current 30% discount for the micro-fund for long-term non-residential rentals. A 60% discount is only for classified furnished tourist properties, rural houses, or guest rooms, up to 100,000 euros. However, let us remind you that Deputy Minister for Public Accounts Thomas Cazenave stated: "Article 49.3 will be used to pass the 2024 budget. If the government wants to reduce everything to 40%, it will have complete freedom of action."

Taxes for 2024: these 5 new measures adopted by the finance committee... that will put pressure on the government.