The taxation of rents received by private landlords has taken on the appearance of a soap opera. What will be the amount of rents collected in 2024? “It’s hard to say at this point”Baptiste Bochart, a lawyer at Jedeclaremonmeuble.com, answers: Uncertainty remains particularly in the case of taxation of income from seasonal rentals, and is likely to remain so until the end of the year.
To understand this, you need to re-watch previous episodes. Rental taxation is complex. Different terms apply, depending on the nature of the rental (is the property furnished? rented to tourists? “classified”?), the level of rent received, and the taxpayer’s tax choices. However, one point stands out: until now, landlords have benefited from lower taxes if the property was rented to tourists than if it housed tenants.
A preferential treatment widely criticised given the tensions that have been exacerbated in the rental market and the difficulties in accessing housing. At the start of the 2023 school year, the Government was in favour of introducing a reform in the finance bill for 2024, during its parliamentary examination. In the end, the budget approved at the end of December 2023 by 49.3% did include a reform, but… not the one desired by the executive. An amendment was maintained. by mistake » in the version presented at 49.3, Bercy explained.
Up to 92% reduction
The amendment reduces the tax reduction granted to owners of traditional tourist accommodation from 50% to 30% and significantly reduces the annual rental ceiling that allows them to benefit (if they wish), from €77,700 to €15,000 (beyond this, landlords are “actually” taxed, with the possibility of deducting charges and depreciation).
It has not addressed the even more preferential treatment of “classified” furnished tourist accommodation (the classification guarantees holidaymakers a certain comfort), maintaining its reduction at 71% to 188,700 euros. The most curious thing is that this rate has even been increased to 92% (only 8% of income is taxed) in “non-tense” areas, under certain conditions (if the taxpayer does not receive more than 15,000 euros in rent for all his furnished rentals).
The new features were to be applied from the spring 2024 income tax return for rents received in 2023. To limit the effects of this mess and a “retroactive application”The government, in February, authorized taxpayers to apply the old rules for one more year, therefore for their income declared in 2024, through a comment to Official Gazette of Public Finances. In yet another twist this summer, the Council of State repressed the commentary, but this should not affect taxpayers who benefited from it because it was published after the tax declaration, believe the lawyers interviewed.
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