Furnished rentals: how to declare your rental income?

Are you an owner of a furnished property that you rent out for all or part of the year? Are you wondering how to declare your non-professional furnished rental income?

Here are Lodgis’s tips to easily declare your rental income…

1/ Declaring your non-professional furnished rental income

This is usually done within 15 days of the start of the furnished rental lease, and must be done before your first tax return.

For this, you must send a P0i form to the office of the Commercial Court to which the furnished accommodation is attached.

With this declaration of furnished rental income, you will receive a SIRET number, essential for declaring your rental income, especially using the ‘regime réel’.

Find the address of your property’s Commercial Court office (in French)

2/ Choosing the right tax regime

Income from a furnished rental property falls into the category of industrial and commercial profits.
To declare your income, you have the choice between two tax regimes:

The ‘regime Micro-BIC’: simple and quick to set up, it allows you to benefit from a 50% tax reduction on your rental income.
The ‘regime réel’: more complex and demanding, it allows you to deduct all of your costs and charges, and to amortize your property and furnishings.

Bon à savoir : Good to know: in 80% of cases, the ‘regime réel’ is the best option and allows you to not pay tax on your furnished rental income for an average of ten years...

To learn more about the benefits of each regime, read the article « Furnished rentals: which tax regime to choose to declare income? »

3/ Report your rental income

When declaring your income (vi form 2042), simply attach your 2042C PRO form (additional income) to your tax return, stating your gross annual income, that is to say the amount of rent including charges collected over the year.

Under the ‘régime réel’

For those in their first year of non-professional furnished renting

You must complete your tax return and send it electronically to the business tax centre to which your property belongs (if you have several, use the one that generates the most revenue) before the beginning of May the following year.
Given the accounting complexity of this type of declaration, to complete it, that is, to fill in the necessary tax return (form 2031, CERFA 11085) and its annexes (CERFA 10956), and to send electronically all of the documents to the business tax centre, you can seek the services of a chartered accountant or use one of those offered by our partner jedeclaremonmeuble.com.
They will take care of filling out your tax statement using the ‘régime réel’. You will need only to provide the amount of profits (equal to 0 € if you have a deficit) in the statement of your complementary income.

Find the business tax centre to which your property belongs (in French)

If you reported your income last year under the ‘régime micro-BIC’

If you want to switch from the ‘régime micro-BIC’ to the ‘régime réel’, you need to send an option waiver letter to the tax office to which your property belongs before 1st February of the year for which you want to report your rental income under the ‘régime réel’.
For example, if you want to report your rental income from 2020 under the ‘régime réel’, you must take the necessary steps before 1st February 2020 (for rental income from 2019, it is unfortunately too late, unless you made the request before 1st February 2019).

Find the business tax centre to which your property belongs (in French)

If you reported your income last year under the ‘régime réel’

You do not need to take any specific action. Your choice of tax regime for declaring furnished rental income is valid for one year and renews automatically.
So, just like last year, you will need to complete and electronically transfer your tax return to the business tax centre, then declare the amount of profits (equal to 0 € if you have a deficit) in your statement of your complementary income.