How Airbnb pays less tax through LMNP？
Renting via Airbnb is compatible with the LMNP status and can offer tax advantages.
The Airbnb platform is designed for landlords who want to offer their furnished property for short-term or long-term rentals. Is this activity compatible with the status of Non-Professional Furnished Rental (LMNP)?
In this article, we will explore this question and explain how to declare rental income from Airbnb as an LMNP.
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Table of Contents
- Compatibility with LMNP
- Types of Properties That Can Be Listed on Airbnb
- Difference Between Airbnb Rentals and Tourist Residences
- Declaring Rental Income
- Example of Tax Calculation
1. Compatibility with LMNP
To operate as a non-professional furnished landlord, you can indeed use the Airbnb platform. For tax purposes, you can choose either the micro-BIC regime or the simplified real regime. Your rental income must be declared under the category of industrial and commercial profits (BIC).
2. Types of Properties That Can Be Listed on Airbnb
Renting Out Your Secondary Residence on Airbnb
To list your property as an LMNP rental on the Airbnb platform, the property must meet the list of mandatory furniture requirements. It must also be rented out in its entirety and cannot serve as the tenant's primary residence. Furthermore, the maximum rental period cannot exceed 90 consecutive days.
Property in a Co-ownership
If your furnished property is part of a co-ownership, you can list it on Airbnb for short-term rentals unless otherwise specified in the co-ownership regulations.
3. Difference Between Airbnb Rentals and Tourist Residences
While LMNP rentals via Airbnb are popular, tourist residences have their own advantages. LMNP rentals focus on location, whereas tourist residences offer additional services such as reception and activity bookings, providing a more comprehensive vacation experience.
4. Declaring Rental Income
Micro-BIC Regime
You benefit from a standard deduction of 50% for regular rentals and 71% for seasonal rentals.
Simplified Real Regime
All actual expenses can be deducted, which can be advantageous for landlords with significant expenses.
5. Example of Tax Calculation
Assumptions:
- Purchase of a secondary residence in Nice for 342,000 euros.
- Cost of furnishings: 5,000 euros.
- Renovations: 4,000 euros.
- Loan of 250,000 euros over 15 years at an interest rate of 2.3%.
- Annual expenses: loan interest, co-ownership charges, management fees, insurance, property tax, miscellaneous expenses, and accounting depreciation.
Micro-BIC Regime
- Taxable income after deduction: 2,958 euros.
- Tax payable: 1,396 euros.
Simplified Real Regime
- Taxable income after expense deductions: loss of 7,282 euros.
- Tax payable: 0 euros (carry forwardable).
Renting via Airbnb is compatible with the LMNP status and can offer tax advantages. Choosing the appropriate tax regime is essential to optimize your rental income. Ensure you comply with legal obligations and correctly declare your income to avoid any tax audits.
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