Rules for owners of a property in France

Welcoming guests to a holiday rental brings with it a number of responsibilities. To ensure that the conditions of their stay are excellent and that your welcome fulfils the necessary obligations, here are our recommendations and tips: 

The following content is provided purely for informative purposes and must not under any circumstances be used as a replacement for the regulations in force.

 

1.Adequate accommodation, smoke detector, home insurance

 

1.1 What provisions do I need to make at the rented property to guarantee the health and safety of guests?

Before renting my property out, I must ensure that it is in good order and that safety regulations are complied with. I carry out any necessary repairs and maintenance before guests arrive.

The following rules are provided for illustrative purposes. Your accommodation may be subject to stricter regulations. Please check the health regulations applicable in the area where your property is located.

 

(A) Maintenance and upkeep of the property

The structure of the accommodation and access to it must be sound and in a good state of repair. It must protect the premises from water run-off and upwelling.

The exterior woodwork and roofing, including their joins and accessories, must protect the accommodation from water ingress.

The nature and the state of maintenance and upkeep of the accommodation's building materials, pipework, flooring, cladding and other coverings must not present any obvious risks to the health and physical integrity of renters.

If my property is located abroad, its upkeep must take into consideration the local weather conditions.

 

(B) Safety of electrical and gas installations

Electricity and gas networks and branches, as well as heating and hot water amenities, must be compliant with the safety standards established by laws and regulations. They must be in good working condition.

 

(C) Safety inside the property

Systems for holding people back within the accommodation and its entrance areas, such as railings on windows, staircases, loggias and balconies, must be in good working condition.

Openings and ventilation systems must allow fresh air to enter in a way that is suitable for the needs of normal occupation of the property and operation of the amenities.

Rooms intended as living space or for sleeping in must benefit from sufficient natural light and an opening that looks out directly onto open air or onto a glazed space looking out onto open air.

The accommodation must have at least one main room that has either a habitable floor space of at least 9 square metres and a height up to the ceiling of at least 2.20 metres, or a habitable volume of at least 20 cubic metres.

 

1.2 What amenities must be present in the property?

My property must include the following amenities as a minimum:

  • An installation providing normal heating, which is equipped with systems for the supply of power and for the extraction of the products of combustion, and which is suitable for the characteristics of the accommodation.
  • An installation providing a supply of drinking water, which ensures its distribution inside the accommodation with a level of pressure and flow rate sufficient for normal use by the renters.
  • Installations for the evacuation of domestic waste water and sewage, which are equipped with U-bends and which prevent the backflow of odours and effluent.
  • A kitchen or kitchen area fitted with a cooking appliance and a sink connected to an installation for the supply of hot and cold water and an installation for the evacuation of waste water.
  • A sanitary installation inside the accommodation that includes a WC separate from the kitchen and separate from the room where meals are eaten, amenities for washing the body, including a bath or shower, which are fitted such that they ensure personal privacy, and supplied with hot and cold water, as well as a system for the evacuation of waste water. The sanitary installation pertaining to accommodation consisting of just one room may be limited to a WC that is outside the accommodation itself as long as this WC is situated within the same building and is easily accessible.
  • An electrical network enabling sufficient lighting for all of the rooms and entrance areas, and operation of the standard household appliances essential for daily life.
  • A smoke detector that bears the CE marking, fulfils the NF EN 14604 standard, and is in good working order when the renters arrive at the premises. The detector must be installed preferably in the corridor or area leading to the bedrooms. More information is available here.

 

1.3 Do I need to take out private insurance to cover renting out my property?

By proceeding to rent your property out on the website, you agree that prior to the first traveller's arrival at your property you will take out (or have already taken out) an insurance policy that is suitable and sufficient to cover any possible damage that could affect the renters and/or your property during their stay. You also agree to maintain adequate insurance cover until the traveller's departure date.

We suggest that you contact your usual insurance company to check the details of cover of your insurance policy.

 

2. How to preserve your neighbours' peace and quiet?

Sometimes, some travellers take liberties when away from home, to the detriment of their temporary neighbours' peace and quiet…

For this reason, it can be useful to provide a reminder of some basic rules of good manners that could preserve your neighbours' peace and quiet during the entirety of your renters' stay.

Further below you will find some standard examples of rules of politeness aimed at your guests, which will be particularly relevant if your holiday rental is located within a shared building.

You can provide this information to your guests in various ways, for example by displaying these rules in your accommodation, or by handing them to your guests when they arrive.

 

(A) What are the specific issues relating to the building my apartment is located in?

It is always useful to inform guests of specific information relating to the building as a whole, for example:

  • giving them the name of the security guard or caretaker they can contact in case of need
  • telling them where the rubbish bins are located
  • asking them to be respectful of common areas and not to make noise in them by, for example, carrying luggage carelessly, slamming doors, running up and down the stairs
  • ask them to obey any instructions and rules displayed within the building
  • and, of course, encourage them to always be respectful towards the neighbours and to maintain the best relations possible with the other residents of the building!

 

(B) What is the ideal behaviour of guests in my apartment?

Peace and quiet for all the neighbours is also ensured through appropriate behaviour inside the apartment itself.



You can therefore ask your guests:

  • to respect the times when neighbours particularly expect to have peace and quiet (such as before 7 a.m. and after 10 p.m.)
  • not to make any noise in the apartment that would disturb the neighbours (such as loud music, slamming doors, talking loudly next to open windows, stamping on the floors, walking about in high heels)

 

3. How to handle the acceptance of pets in my holiday rental?

According to owners who regularly accept pets and pet owners in their holiday rental, this criterion enables them to rent it out for more weeks of the year.

For pet owners, finding someone or somewhere to look after their pet when they go away on holiday can be a real headache, and their pet is part of their family too, so they often want to be able to take their pet with them...

Holiday rentals with a garden are therefore the ideal solution!

However, you might not want your guests to bring their pet with them when they stay at your property. Let's look at the current rules.

 

(A) Do I have the right to prohibit pets from staying?

Yes, you do.

If you have heard that holiday rental owners cannot prohibit pets from their holiday rental, please be advised that this is no longer the case.

With effect from 2012, holiday rental contracts of furnished tourist properties – such as holiday rentals – can prohibit pets.

For an owner, it is understandable that they may wish to restrict access to their property for pets: the risks of damage and nuisance are many and various!

So, if you do not wish to accept pets at your property, you have every right not to.

For more information, click here.

 

(B) A few tips…

  • To avoid any disappointments, don't forget to specify in your rental agreement whether or not you accept pets staying at your property.
  • To provide potential guests with clear information, it is advisable to mention this specifically in the listing itself. This way, travellers will be able to contact you in full knowledge of the facts!
  • If travellers ask you about it, consider explaining the reasons why you don't accept pets staying at your property. Good communication enables everyone to understand each other better!

 

4. How can I make my holiday rental more eco-friendly?

Eco-tourism has become a key factor in holiday rentals.

Travellers increasingly take this issue into consideration when choosing their holiday.

To make your house more eco-friendly, here are a few tips for a holiday rental that is more in harmony with the environment.

 

(A) How to optimise sunlight?

Arrange your holiday rental in such a way that sunlight can easily illuminate the various rooms.

Clear any objects that could reduce the amount of light in the various rooms. For example, put the television in one of the darker areas and the table in one of the lighter areas.

 

(B) How to control the temperature of the house?

Avoid unnecessary heating of rooms that are used less often.

For example, if you have the possibility to programme the thermostat, set it so that the temperature of the bedrooms is reduced in the daytime and increased in the evening.

 

(C) How to use rainwater responsibly?

If you have a garden and you need to water it, try to use rainwater, for example by placing a tank under the guttering. This will enable you to draw water from the earth and save money while respecting the environment.

Also remember that watering the garden in the daytime is wasteful – try to do it in the evening!

 

(D) How to sort the waste?

Try to show you renters how to sort and recycle the household waste in order to reduce the volume of actual rubbish.

Ensure that your holiday rental has separate bins for recycling or bins with separators fitted, and tell your renters how the rubbish and recycling are dealt with in the local area, for example you could leave them a copy of the leaflet giving information about the days and times when rubbish and recycling are collected and how the household waste should be sorted. Remember that this can vary from town to town!

You could also consider installing a composter for dealing with organic waste (fruit and vegetable peelings, coffee grounds, teabags, etc.).

 

(E) How to prevent excessive use of electricity?

Ensure that guests are able to see the plug socket switches for cutting power to electrical goods (hi-fi, household appliances, etc.) when they are not in use. Remember that when these appliances are in standby mode they are still using electricity.

Fitting low-energy light bulbs and/or solar devices at your property is another way to reduce the use of energy.

 

(F) Use organic, eco-friendly and sustainable products

Consider providing your guests with environmentally friendly products like ecological washing-up liquid, organic cotton towels, toys/games made of FSC-certified wood, etc.

 

5. How can I ensure that my guests use the Internet connection appropriately?

Owners know that travellers care about having Internet access at their holiday rental. Guests may want to go green, but an Internet connection will enable them to make their day-to-day arrangements without leaving the house, as well as stay in touch with loved ones.

 

(A) How am I affected by how my guests use my Internet connection?

If you have taken out an Internet service for your holiday rental, be aware that you need to ensure that the service is not used for counterfeiting works protected by copyright or similar rights (e.g. music, films, books, photographs). This is because according to the Hadopi law, you are responsible for how your Internet connection is used, even if you did not commit the counterfeiting yourself.

So, to avoid any problems of this nature, it is advisable to protect your Wi-Fi access from being used for purposes of illegal provision or access to protected works on peer-to-peer networks.

 

(B) How to protect my Internet access?

To do this, contact your Internet service provider and ask them for a latest-generation (i.e. WPA2) encryption key.

Remember to change it regularly.

 

(C) How to advise my guests about using my connection responsibly?

You should also make your renters aware about use of this connection.

You will find a message for renters in the sample welcome booklet available to owners. Bear in mind that during the course of their stay in your holiday rental, renters might use the Internet connection provided to them – and they might use it via laptops on which peer-to-peer software (for downloading copyrighted works) might be installed.

 

6. Prior declarations or authorisations

As the owner, you are obliged to carry out the administrative procedures for the registration and/or declaration and/or authorisation applicable to the rental of your property. Our website does not offer any legal advice in this respect.

Below, for illustrative purposes, you will find various procedures that could apply to the rental of your property. More information is available here.

A property may constitute your primary home as long as it is offered for rent for less than four months (120 days) per year. If the period is longer than this, the property is considered your second home.

Registration procedure, where applicable:

Since the publication of the decree relating to Article 51 of the Law for a Digital Republic, town halls have had the option to implement – if so decided by a local council meeting – a registration procedure for any furnished tourist property, as defined here, whether it is categorised or not, and whether it is a primary home or a secondary home.

We suggest that you contact your local hall for information about whether it is implementing such a procedure.

Information to declare at the town hall:

1. The declarant's identity, postal address and email address;


2. The address of the furnished premises, specifying the building, staircase, floor and apartment number if it forms part of a block of apartments.


– If the declarant is offered the option, they can indicate the invariable number identifying the accommodation as appears on their property tax, instead of the information mentioned in the first paragraph of this item 2;


3. Its status as the primary home or not;


4. The number of rooms in the furnished property, the number of beds and, if applicable, the date of the decision of categorisation and the level of categorisation or any other recognition of the quality of the furnished tourist property.

For more details of what information to provide, click here.


 

(A) I am renting out my primary home

With effect from 30 April 2017, the Law for a Digital Republic introduced for town halls the option to implement – if so decided by a local council meeting – a procedure for prior registration.

If the district in which the property is located has chosen to introduce such a procedure and has put in place the necessary IT systems, you will be required, as an Owner, to enter this registration number, which you will have been issued with by the district, in  your listing on our website.

Remember, your primary home can only be rented out for a maximum of 120 days per year.

 

(B) I am renting out my secondary home

  • Declaration prior to registration

With effect from 30 April 2017, the Law for a Digital Republic introduced for town halls the option to implement – if so decided by a local council meeting – a procedure for prior registration. If the district in which the property is located has chosen to introduce such a procedure and has put in place the necessary IT systems, you will be required, as an Owner, to enter this registration number, which you will have been issued with by the district, in your listing on our website.

  • Declaration of furnished tourist properties

Furnished tourist properties (also referred to as holiday rentals) are furnished villas, apartments or studios offered to occasional customers who have a stay there which is characterised by a rental paid by the day, week or month, and who do not take up residence there.

Renting out a furnished tourist property is subject to advance declaration to the mayor of the district in which the furnished property is located. We suggest that you contact the applicable department of the town hall for the district in which your property is located in order to obtain the practical details of this declaration.

More information is available here.

  • Authorisation for change of use

In some cities, particularly in cities with more than 200,000 inhabitants such as Paris, the towns immediately surrounding Paris (Hauts de Seine, Seine Saint Denis, Val de Marne) and some towns with more than 50,000 inhabitants incorporating areas described as strained (where there is a considerable imbalance between supply and demand for accommodation), any change of use of premises intended as accommodation can be subject to prior authorisation. Such authorisation may be issued either on a temporary or permanent basis. We suggest that you contact the town hall for the location of the property to be rented in order to find out whether such authorisation is necessary.

It is your responsibility as the Owner to apply for this authorisation when you begin planning to rent out furnished premises for short durations to occasional customers who will not be taking up residence there.

Paris Town Hall has already implemented the system for advance authorisation for cases of change of use across the entire area for which it is responsible. You can find below the documentation provided on the Paris Town Hall website: a practical guide to changes of use as well as a text with information about furnished tourist property rentals.

Throughout Paris, in the case of more than 120 days of rental per year, it is your responsibility as the Owner of the furnished tourist property rental to request authorisation from the town hall for a change of use.

  • Declaration of guesthouse rooms to the town hall

Guesthouse rooms are furnished rooms, located at the property where the owner lives, for the purpose of accommodating tourists for one or more nights, combined with services, notably the provision of meals (breakfast). The guests are welcomed by the owner in person. Guesthouse room rental is limited to 5 rooms per property, with a maximum capacity of 15 guests.

Anyone who offers one or more guesthouse rooms for rent must have declared this in advance to the mayor of the city of the location of the relevant accommodation. We suggest that you contact the applicable department of the town hall for the city in which your property is located in order to obtain the practical details of this declaration.

More information is available here.

 

7. Safety of private swimming pools: how can I let my renters enjoy the use of my pool with peace of mind?

As all owners of holiday rentals know, a swimming pool is a huge plus-value for your property, making it much more attractive to potential guests.

The pleasures of swimming and lazing about at the water's edge are for many people what a good holiday is all about!

However, there are certain safety standards that should be respected.

 

(A) Is my swimming pool affected?

If the property you offer as a holiday rental has a private swimming pool to which all of the following applies:

  • for individual or shared use (family pools, pools reserved for residents, hotel pools, campsite pools, cottage pools, etc.);
  • in which the pool itself is totally or partly buried;

be aware that you need to equip it with safety equipment in order to prevent risks of drowning.

However, if the pool is not buried (e.g. if it is inflatable or can be dismantled), you are not affected by these rules.

(B) What equipment do I need to install?

If you are affected, you need to install at least 1 of the following 4 pieces of equipment:

  • protective barrier
  • safety cover (tarpaulin)
  • shelter (conservatory-type structures covering the entire pool)
  • audible alarm

Caution: this safety equipment never replaces active, continual supervision of children by an adult!

 

(C) Obligations borne by my builder or installer

You are not alone in having obligations.

When the equipment is installed, ensure that your builder or installer provides you, no later than the date on which you sign to accept the pool as completed, a technique note stating:

  • the characteristics and the operating and maintenance conditions of the chosen safety system;
  • recommended general preventive measures to avoid risks of drowning.

Your builder or installer is in fact obliged to provide you with this document.

 

(D) Does my equipment comply with the standards?

The installed equipment must comply with the standards set by Afnor ("Association française de normalisation" – the French association for standards). To check that you are compliant with these requirements, you can visit their website by clicking here.

In addition, if your safety system was installed before 8 June 2004, you can get your installation's compliance certified in several ways:

  • by a manufacturer
  • by a seller/installer of safety equipment
  • by a state-approved technical inspector
  • by yourself, at your own risk, with the help of a regulated template from which you take over the terms.

This certification is not obligatory, but in the event of an accident you could be held liable if you do not have such a document.

 

(E) Special safety requirements for swimming pools at holiday rentals

More restrictive rules have been established for swimming pools at holiday rentals (which are described as being "for shared use").

Due to more frequent usage than private swimming pools, there are more safety risks.

So, be aware that:

  • The surfaces of flooring and walls (including inside the pool) must not be hazardous for users. For example: they must not be slippery or abrasive.
  • Users of the pool must be informed, by means of information on display, about the risks and precautions associated with the use of all of the equipment or materials provided.
  • For each pool, the minimum and maximum depths must be displayed. They must also be legible from the decks and the pools.
  • When the turbidity of the water in all or part of a pool is such that the bottom is no longer visible, that pool must be evacuated immediately.
  • There must be a sufficient quantity of surface skimmers and water outlets. They must be designed such as not to risk sucking up or flattening all or part of users' bodies. The water outlets must also be equipped with gratings and it must not be possible for users to open them.
  • The hydraulic installations (water outlets, chutes, artificial wave generators) must be equipped with a "punch" type of emergency shutdown device. This device must be easily accessible and visible.
  • With regard to water slides, diving boards, wave machines, whirlpools and artificial water currents, there are also specific safety instructions.

 

(F) Penalties

In the event of not complying with the obligation to equip your swimming pool with a safety system, you risk a fine of up to €45,000.

 

(G) For a more in-depth look…

You can also refer to:

the regulatory provisions relating to the safety of swimming pools:


http://www.economie.gouv.fr/dgccrf/Securite-des-piscines


https://www.service-public.fr/particuliers/vosdroits/F1722

risks in and around the home on the Inpes website:


http://www.prevention-maison.fr/accidents/#/piscine

 

8. Tax and social security provisions applicable to holiday rentals

(A) What are the provisions for taxation of income derived from furnished rentals and what are the obligations relating to declarations?

With regard to the applicable tax provisions, we suggest that you refer to the following page of information: https://www.impots.gouv.fr/portail/node/10841

The below tax information does not constitute personalised advice tailored to your situation but rather general information about the provisions in force as at the date of writing these FAQs, and is subject to subsequent changes. We suggest that you contact a specialist advisor for more precise details of the tax provisions that apply to your situation.

a. The professional or non-professional status of a lessor of furnished property

Renting out furnished rooms, houses or apartments on a regular basis, by anyone, is a business activity. In terms of income tax, it comes under the category of industrial and business profits ("BIC"), rather than that of income from property. This activity may be carried out by companies in the form of partnerships (family-owned EURL or SARL that is optionally not subject to corporate tax) as well as by companies subject to corporate tax (common law SA, SARL, etc.). The tenant must benefit from furniture and a layout that reflect normal use for living in.

Income derived from furnished rentals is taxable under the category of industrial and business profits ("BIC") and is subject to the progressive income tax scale with a maximum rate of 45%, regardless of whether or not the lessor is categorised as a professional.

Some aspects of the tax provisions for lessors of furnished properties vary depending on whether their status is professional or non-professional.

The activity of a lessor of furnished property is professional in nature, according to the provisions of Article 155, IV, 2. of the General Tax Code, when the following three cumulative conditions apply:

- one of the members of the taxable household is registered for this purpose with the RCS (Register of Trade and Companies);


- the annual revenue derived from this activity by all of the members of the taxable household amounts to more than 23,000 euros;


- this revenue exceeds the taxable household's professional income that is subject to income tax.

The main differences, when the lessor can be categorised as professional according to the criteria defined above, relates to the attribution of any shortfall derived from the activity of furnished rental (the professional lessor of furnished property can attribute their shortfall to their overall income without any time limitation; in contrast, the non-professional lessor of furnished property can only attribute it to profits of the same kind made during the same year or the following ten years) and the taxation of capital gains (the capital gains of professional lessors of furnished property benefit, as long as the activity has been carried out for at least five (5) years, from total or partial exemption from income tax under certain conditions).

Above all, non-professional lessors of furnished property can benefit from exemption from income tax when they rent out their primary home, which is not the case for professional lessors of furnished property.

Indeed, in accordance with the provisions of paragraph I of Article 35 bis of the General Tax Code, people who rent or sublet one or more furnished rooms in their primary home (or temporary home in the case of holiday rentals) may be exempt from tax on the income derived from this rent as long as the price of the rent remains within "reasonable limits". For 2016, the administration specified indicatively that a price of 184 euros per habitable square metre for Ile-de-France and a price of 135 euros for other regions should meet this criterion. These thresholds are reassessed each year.

In accordance to the provisions of paragraph II of Article 35 bis of the General Tax Code, people who regularly publicly offer one or more rooms from their primary home are exempt from tax on income derived from the rent as long as it does not exceed 760 euros per year. This limit includes any taxes included and applies to the total revenue derived from the rental and the provision of associated services.

We suggest that you contact a specialist advisor for an analysis tailored to your personal situation.

 

b. The different tax regimes

The tax regimes apply equally whether the lessor of furnished property is categorised as professional or non-professional (subject to the details in paragraph a. above).

Below you will find information about the main applicable regimes. We recommend that you contact a tax advisor with regard to which regime is the most suitable one for your personal situation.

  • The micro-BIC regime

You can benefit from the micro-BIC regime as long as your annual turnover does not exceed 32,900 euros excluding tax (Article 50-0 of the General Tax Code). The taxable profit or result is equal to the gross annual revenue (rent and any associated revenue) reduced by a standardised deduction for costs, which is deemed to cover all costs and amounts, to 50%.

Due to this deduction, this regime can be advantageous, particularly if the total value of the costs and amortisations is actually less than 50% of the total annual revenue excluding tax. This regime does not allow you to deduct any cost for its actual amount. Once your costs exceed 50% of the gross revenue (for example, loan interest associated with the purchase of the accommodation), it is preferable to opt for the actual tax regime.

Special case

Please note that in the case of furnished tourist rentals within the meaning of Article L.324-1 of the Tourism Code (i.e. categorised) and guesthouse rooms within the meaning of Article L.324-3 of the same code (i.e. rural cottages, furnished tourist rentals and guesthouse rooms), for the purpose of the micro-BIC regime, such activity is subject to the threshold applicable to sales, which is 82,200 euros, and benefits from a standardised deduction for costs which is set at 71%.

  • The simplified actual or normal actual regime

The simplified actual regime applies automatically to taxpayers who are excluded from the micro-BIC regime due to the value of their turnover, or due to their legal form, or due to the nature of their activity, and whose annual revenue does not exceed 236,000 euros excluding tax. It is characterised by a reduction in the obligations relating to declarations and account-keeping by comparison with the "normal regime" of taxation, which is obligatory when the annual revenue exceeds 236,000 euros.

The actual regime (both simplified and normal) may be more advantageous than the micro-BIC regime, due to the costs that it allows to be deducted from the rental revenue, and due to the amortisations that it allows to be practised.

  • The "auto-entrepreneur" regime

The status of "auto-entrepreneur" is granted to individual entrepreneurs whose taxable household has funds not exceeding the upper limit of the second bracket of income tax (so for 2017, that is 26,898 euros per unit). This regime gives the right to full discharge set at 1.7% of the turnover for the provision of services.

For a furnished rental business, the auto-entrepreneur regime is probably not the most suitable one. Any works or refurbishment costs in respect of the rentals cannot be deducted from your turnover and there is no standard deduction either.

For more information about the different BIC tax regimes: www.service-public.fr/professionnels-entreprises/vosdroits/F32919.

 

c. Obligations in respect of declarations

Remember that an owner, lessor or any person receiving rent from letting out furnished accommodation in France or abroad (subject to the applicable bilateral tax agreements) is obliged to declare their annual income to the French tax administration.

This income is subject to income tax. It is the responsibility of the owner of the property being let out, whether they are residents of France for tax purposes or not (see paragraph d. regarding the special case for non-residents), to declare the total income generated the previous year (i.e. from 1 January to 31 December).

To this purpose, each year, in order to simplify the management of your holiday rental and your income tax declaration, we send you an email summarising your total gross income generated online via HolidayRentPayment/HomeAway UK, as well as the number of transactions involved, for the period from 1 January to 31 December of the previous year.

Important: The amount appearing in this summary email only covers bookings generated online via HolidayRentPayment/HomeAway UK and may include rent that was subsequently refunded following cancellations. In order to obtain the exact amount to declare, use the amount indicated in this email as a starting point and make sure to:

  • deduct from your declaration the total amount of rent from bookings that were subsequently cancelled, so as not to declare amounts that were not received;
  • add the amount received from bookings made on HomeAway UK via methods other than online bookings;
  • add the amount received from bookings made via other websites or any other booking platform.

To find out more about current legislation on income tax, we suggest that you check the webpage on this topic published by the French tax administration.

Income received must be reported in your annual declaration of income (in accordance with the chosen tax regime), which needs to be submitted in the May/June of the year following the tax year in which the income was received (the exact dates being set each year by the government).

Below, you will find a link to the website of the tax administration through which you can declare your income online:


http://www.impots.gouv.fr/portal/static/part/part.html.

 

d. Case for non-residents

People resident abroad for tax purposes, subject to the applicable bilateral tax agreements, must declare their income of French origin resulting from renting out a property located in France.

The income received must be reported in the declaration of income, which needs to be submitted in the June of the year following the year in which your income was received (the exact dates being set each year by the government).

 

 

(B). What are the social security provisions applicable to income derived from furnished property rentals?

With regard to the applicable social security regulations, we suggest that you refer to the following page of information:


http://www.securite-sociale.fr/Vos-droits-et-demarches-dans-le-cadre-des-activites-economiques-entre-particuliers-Article-87

The below social security information does not constitute personalised advice tailored to your situation but rather general information about the provisions in force as at the date of writing these FAQs, and is subject to subsequent changes. We suggest that you contact a specialist advisor for more precise details of the social security provisions that apply to your situation.

 

a. The professional status of a lessor of furnished property and the rate of social security contributions

From a social security perspective, the categorisation of a lessor of furnished property as professional or non-professional has more impact than it does from a tax perspective. People who fit the definition of a professional lessor of furnished property are liable for social security contributions on rental income at a rate of 45% (being income from business activity), whereas if a rental business is carried out as a non-professional lessor of furnished property, the income is considered to be income from the person's assets and is subject to social security deductions at a rate of 15.5%.

The criteria for defining who is a professional lessor of furnished property are set out in the tax legislation (the three cumulative conditions listed in paragraph 1) a. above apply, in accordance with the provisions of Article L.613-1 of the Social Security Code). In practice, however, only the condition of registration with the RCS was "applied" by the self-employed social security regime (RSI). Thus, any registration with the RCS as a lessor of furnished property involves an affiliation with the RSI in the "traders" professional group (in accordance with the provisions of Article L.622-4 of the Social Security Code relating to the industrial and commercial professions for which registration with the RCS is a requirement).

However, the law on financing social security for 2017 modifies these criteria and applies a "single" criterion for categorisation as a professional lessor of furnished property, which relates to the amount of income derived from rentals: owners who let out their furnished property must become affiliate with the self-employed social security regime once their annual gross revenue exceeds 23,000 euros.

 b. Obligations in respect of declarations

When the criteria for categorisation as a professional lessor of furnished property are fulfilled, owners must register for the RSI (through procedures to be carried out at Urssaf) and, as we mentioned previously, income derived from rentals is subject to social security contributions at a rate of 45%.

Below, you will find a link to the website of the Urssaf and RSI through which you can declare your income online: UrssafRSI.


In the opposite case, the income received is categorised as income from assets and is subject to social security deductions at a rate of 15.5% and collected by the tax administration at the same time as income tax. We suggest that you contact a specialist advisor for more precise details of which social security regime applies to you.

 

c. Case for non-residents

Due to the principle of unique legislation that applies in Europe, an owner can only be affiliated with one European social security system. We suggest that you contact a specialist advisor in order to obtain more information about this.

 

(C) What do I need to know with regard to VAT?

Owners who might be deemed liable for VAT could in some cases need to pay/collect VAT on transactions carried out within the European Union. In any case where the provision of furnished property rental was to be subject to VAT, it would be the owner's responsibility to fulfil their obligations in respect of declarations and to collect the VAT without the involvement of HomeAway. Associated provisions of services may be subject to VAT if the owner is liable for VAT.

Likewise, depending on their guests' country of residence, "local" VAT may apply, notably on the service fee billed to them. A system of VAT harmonisation is in place within Europe, and this could potentially have an impact on transactions carried out via our platform.

We suggest that you approach a tax advisor to find out your status in respect of VAT and to obtain more precise information. To find out more: http://bofip.impots.gouv.fr/bofip/1-PGP.html.

 

(D) What do I need to know with regard to "stay tax"?

The "stay tax" was implemented in 1910 to enable touristic towns to improve their services without increasing the tax burden for local residents. Since 1995, its collection has been open to all French cities "that carry out activity to promote tourism" or "that carry out activity to protect and manage their natural spaces";

Stay tax is also known variously as occupancy tax, visit tax, tourism tax, tourist tax, accommodation tax, sales tax and hotel tax.

The amounts collected must remain within the city to be reinvested in improving the conditions for welcoming tourists. All cities can decide whether to apply the stay tax and under what conditions. The decision can be made at the level of the city, of a group of cities, or of the department. The scope of stay tax is very wide as it encompasses issues such as environmental protection, waste management and signage.

Collection of the stay tax is governed by the General Code of Local Authorities and the Tourism Code.

Stay tax can be implemented by the town halls in two different ways: actual or flat-rate. The person liable for stay tax varies depending on whether it is "actual" stay tax or "flat-rate" stay tax.

"Actual" stay tax is paid directly, as a supplement to the stay fees, by the person accommodated in the city. The person liable for "actual" stay tax is therefore the traveller. The owner is a mere intermediary between the person accommodated and the local authority, and is responsible for collecting the tax from the traveller/guest and transferring it to the town hall. The cost per person per night is a flat rate and varies from 0.20 euros to 4 euros per person per night, to which any additional departmental tax is added, if applicable, at a rate of 10%. In this case, it is important that the owner informs travellers, prior to the booking, of the exact amount of tax that will be asked of them.

Since 2015, online platforms have the possibility to collect the "actual" stay tax, by agreement with the owners, and to transfer it to the town halls concerned.

"Flat-rate" stay tax, in contrast, is paid and declared by the owner directly to the town hall: the amount is set following the owner's annual declaration to the town hall indicating the capacity of their accommodation and the period they will be open for during the year.

The kinds of tourist establishments affected by "actual" or "flat-rate" stay tax include notably:

- Furnished tourist accommodation

- Cottages

- Campsites

- Holiday villages

- Tourist residences

- Hotels

- Marinas

The period for collection of stay tax (both "actual" and "flat-rate") runs from 1 November to 31 October.

Information about the amount of tax is available from your city town hall or the relevant tourist office. To find out whether a stay tax applies in your city, and what the terms are, please check the official website of the Ministry of Finance and Public Accounts at the following link: http://taxesejour.impots.gouv.fr/.

For more information please check the official website of the French administration.

  • Stay tax in Paris

The city of Paris requires each owner of a holiday rental situated within the city to collect and pay a stay tax. From 1 January 2018, the stay tax applicable in Paris is €0.88 per night and per person over the age of 18 years. To make it easier to collect the stay tax, HomeAway UK collects it directly from guests and pays it to the city of Paris.

  •  HomeAway UK collects the stay tax in some cities

HomeAway UK collects the stay tax from guests in some cities, only for trips which have been reserved or paid for online. HomeAway UK pays this tax automatically to the relevant city. In 2018, HomeAway UK delivers this service within a growing number of French conurbations and informs the owners concerned and the guests that they do not need to pay the stay tax to the property owner on their arrival.

  • What do I need to do?

Within the cities where HomeAway UK have communicated that they collect the stay tax for trips that have been reserved or paid for online via the platform, the owners of holiday rentals which have not been classified or which are awaiting a classification do not have to do anything with regard to the stay tax. This is because HomeAway UK pays the stay tax directly to the district based on the level currently in force for unclassified holiday rentals. On the other hand, owners of holiday rentals which do have a classification still need to pay the difference in the stay tax to their city.

  • What else do I need to know?

Remember that it is your responsibility to collect and pay the stay tax for bookings made before 1 January 2017 for stays in Paris, before the date that HomeAway UK started to collect in the other conurbations, as well as for any bookings made out of the HomeAway UK checkout, in the event that you rent out for short durations via other online services, specialist agencies or intermediaries, or directly. The city may ask you to provide evidence of whether or not your business is carried out exclusively on the HomeAway UK checkout with regard to collecting and the obligatory formality of declaring the stay tax, or relating to the use of the premises offered for rent.

 

Where the stay tax is not collected or paid by HomeAway UK, in every city which has implemented a stay tax, every year, by the date given by the local council, you must:

1. Send your declaration to the appropriate department at the town hall.


You can download the declaration form and a statement template here.


To fulfil the formality of making your declaration, you just need to fill in and send these two documents to the town hall by post.


Please note that the city of Paris also offers you the option to make your declaration directly online. You can access the electronic service by clicking here.

2. Pay your tax on receipt of the notice requesting payment.

The French administration will send you a notice requesting payment when your tax return has been processed. This notice is generally sent during the December of the same year.

Remember that failure to collect and pay the stay tax within the deadlines set may lead to a compulsory taxation procedure decided by the authorities.

The declaration generally needs to be made in November, but the exact date is decided each year by the town hall. Read all about the stay tax in Paris here.

 

9. Everything you need to know about the registration number for holiday rentals

Some cities in France have implemented a mandatory registration process and a teleservice to obtain the registration number.

(A) How do I know if I am affected?

If you rent out or manage a primary or secondary home, you need to know if the city where the property is located has implemented such a registration procedure. To learn which cities in France have implemented a registration procedure, click here.

(B) How do I register?

Log in to the teleservice of the city and provide the information you are asked for. At the end of the procedure, you will immediately receive your registration number. You must complete this procedure for each property situated in Paris that you list on our website.

(C) Where do I need to add my registration number? 

You need to add your registration number in the field provided for this purpose, which is in your HomeAway UK Owner Dashboard. 


To do this, go to the "Description" section under "Change the listing" and fill in the "Registration number" field as shown in the image below.


You need to complete this procedure for all of your listings.


Once your registration number has been added, the changes made will be published within 24 hours. We advise you to check the changes on our website.

(D) Is this procedure mandatory?

Yes, the registration is mandatory in all cities where the registration process has been implemented, and we invite you to comply with the procedure to get your registration number, and add it in the dedicated field.


in your HomeAway UK Owner Dashboard as soon as possible.

Any questions? Contact us here.

Useful links

(Click on the city's name to request your registration number)

Aix en Provence

Annecy

Argonay

Bordeaux

Cannes

Chavanod

Duingt

Epagny Metz-Tessy

Levallois-Perret

Lyons

Neuilly-sur-Seine

Nîmes

Paris :

Poisy

Roquebrune Cap Martin

Saint-Cannat

Saint-Jorioz

Saint Paul de Vence

Sète

Sevrier

Versailles

Villeneuve-Loubet

 

If you already have a registration number, log in to your HomeAway UK Owner Dashboard and update your ad details.

IMPORTANT: Remember that, in accordance with the Terms and Conditions of the HomeAway UK website for property owners and managers, advertisers are responsible for complying with all laws, rules and regulations that apply to their rental business.