You want to rent or sublet a furnished room to obtain additional income, a question arises, is it necessary to declare this income to taxes.
Your children have left, you have a room that is no longer occupied, you have a room that is available in your main residence, you decide to rent this room for the year or for 9 months as part of a student lease . If you do not exceed a certain ceiling, you will not be taxable on this additional income.
Requirements
The income tax exemption only applies under certain conditions:
- The rental must be contracted with a residential lease. Online rental lease template PDF / Word ALUR and ELAN compliant.
- you are rentingroom must be part of your principal residence
- The room must have a minimum space of 20 cubic meters equivalent to an area of 9 m² and a height of 2.20 meters.
- The room must be rented furnished.
- The tenant must have access to water, electricity, heating, sanitary facilities, a kitchen, etc.
- The rented room must be the principal residence of the tenant , this is the case for a student who rents by the school year.
Taxation and ceiling for the year 2022
To be able to benefit from this tax exemption in Ile-de-France, the annual rent must not exceed 191 euros per m². For other regions, the maximum annual rent is capped at 141 euros per m². Namely that the charges are not to be taken into account in the calculation (water, electricity, gas, etc.), it is up to you to think about your rent.
A room for rent of 14 m² in the Paris region allows you to earn 2,674 euros net per year (191 euros x 14 m²). Another example outside of Ile-de-France, a room for rent in Lyon allows you to obtain an income of 1974 euros net (141 euros x 14 m²).
Remember that this rental income must be declared as industrial and commercial profits (BIC). The ceiling increases every year, so we can remain optimistic. If in doubt, do not hesitate to contact the tax office in your area.
In the event that the lessor rents above this ceiling, the income from the rent must be declared annually in the industrial and commercial profits (BIC) part of your tax sheet. The owner of the accommodation can benefit from an automatic abatement of 50% if his annual rental income does not exceed 32,900 euros.
When the lessor’s rental income exceeds the ceiling of 32,900 euros, the tax system automatically switches to actual. The real regime requires the keeping of accounts, but entitles you to a deduction of charges related to the rental activity, such as the rental management of the property, the costs related to maintenance work or the acquisition of the accommodation.
Local taxes such as housing tax must be paid by the tenant because it is a main residence rental, regardless of the status of the tenant.
