Question to an expert
How will I be taxed if I rent out my second home when I’m not using it?
If you count renting your second home when you are not using it, you must make a declaration to the municipality and, sometimes, obtain prior authorization for a change of use. And declare the activity to a business formalities center.
The tax implications will be multiple. In terms of local taxes, the property will remain subject to property and housing taxes but may in addition generate the property contribution of companies and the tourist tax.
As this will be a furnished rental, the rents collected will be submitted income tax on industrial and commercial profits (BIC). You will generally have the choice between two tax regimes: the “micro-BIC”, which provides a standard deduction of charges of 50% or 71%, and the “real BIC”, which allows you to deduct real charges, in particular those of depreciation of the property.
Fictitious rents
And depending on the situation, social security contributions or social contributions will be applied.
If you receive less than 23,000 euros in annual rents or if these rents are lower than your other professional income, you will be considered as a “non-professional furnished rental company” (LMNP), otherwise, you will have the status of “professional furnished rental company “ – a qualification far from neutral.
Please note, if you deduct depreciation in LMNP, you will have to integrate “fictitious rents” into your taxable rents, that is to say the rents for the periods during which you can enjoy your residence (the periods not rented). A preliminary calculation is necessary.