Reporting your Airbnb income in 2019: what are the conditions?

Income generated from your short-term rental activity must be reported to the tax authorities in 2019. What is the threshold for tax exemption? What happens if I own a primary residence? Which tax regime applies based on my total income from booking platforms? How do I report non-professional furnished rental income?Welkeys, your Airbnb concierge service, sheds light on reporting your Airbnb income in 2019.

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Your income reported to the tax authorities in 2019

Starting in 2019, as part of the fight against tax evasion, the government is requiring collaborative economy players like Airbnb to provide greater transparency regarding the income they generate. Consequently, Airbnb must now report to tax authorities the amount earned by each host using its platform, along with their status and banking information. In other words, all income received from a booking platform like Airbnb will be reported directly to the tax authorities. Therefore, as a property owner renting an apartment via a booking platform, your earnings will be automatically reported and entered by the tax administration onto your pre-filled tax returns. The platforms have no choice, and neither does the user! The tax auditor will simply need to verify that the rent received (which they are already aware of) has been correctly entered in box 5ND.

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What is the threshold for tax exemption?

Beyond a certain amount, owners renting out their apartments via Airbnb are subject to taxes. While there is a 50% allowance on rental income, it is subject to a minimum of €305 (regardless of whether it is a primary residence or not). Nevertheless, the owner is still required to report the rent received.

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What happens if I own a primary residence?

Furnished rental of your primary residence is tax-exempt if your annual rent does not exceed 760 euros. If you exceed the 760-euro threshold, a 50% allowance is applied to your rent, and the total income is subject to income tax and social security contributions.

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When your rental income is less than 70,000 euros

All income from the furnished rental of a property falls under the industrial and commercial profits (BIC) regime. If your rental income is less than 32,900 euros, the tax will be calculated under the Micro-BIC regime. By definition, the Micro-BIC regime is a tax system for sole proprietorship income. It defines the tax rules applicable to micro-businesses, including your short-term rental. If your income from Airbnb exceeded €70,900 in 2018, the Micro-BIC regime is no longer available, and you must report under the actual earnings regime.

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What are the procedures for the Micro-BIC regime?

1) Take the total amount of rent received: €x,000. 2) 50% allowance on rent: €x,000 * 50% = €x,000. 3) On this €x,000, the tax authorities will apply social security contributions (17.2%) and the income tax bracket. The tax bracket can be 0%, 14%, 30%, 41%, or 45%, depending on your total accumulated income.

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How do I report it?

Income is reported via the "impots.gouv" website. Select step 3, "Income and Expenses," then "Non-professional furnished rental income." Be sure to enter the total rent; the tax authorities will automatically apply the 50% allowance. Similarly, if your rent is €305 or less, you can enter the total amount in box 5ND and you will not be taxed. This box is found on the supplementary income tax return (2042C).

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Find your taxable Airbnb income.

To find the exact amount of income you have received, simply log in to your Airbnb account and check the transaction history section.