Taxation

RENTAL REVENUES: WHAT REGIME TO ADOPT? (2/2)


  1. INDUSTRIAL AND COMMERCIAL PROFITS (BIC: bénéfices industriels et commerciaux)

Furnished rentals are subject to this regime

 

II.1 TWO POSSIBLE STATUS

  1. LMNP: if the total rental income is lower 23000 €
  2. LMP: If the total rental income is higher than 23000€ and represents over 50% of the household’s professional income => in this case, possible to remove properties from the IFI (wealth property tax)

II.2 TWO WAYS OF DECLARING

II.2.1 MICRO BIC

Possible if the revenues do not exceed 70000€ (prior to 2018: 33200€) for non-classified* furnished rental => 50% deduction on gross revenues and 170000€ (prior to 2018: 828000€) for classified* furnished rentals => 71% deduction on gross revenues

Declaration on form 2042C box 5ND

 

II.2.2 REGIME REEL (actual cost regime)

Compulsory for income above 70000€ (non-classified furnished rentals) or 170000€ (classified furnished rentals)

* you can use the services of a recognised organisation that will classify your furnished rental property and assign the said property a certain rank (stars)



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