The Council of Compulsory Levies (CPO) recommends reducing the difference in abatement rates, on rents, between furnished and unfurnished rentals. (© DR)
Renting furnished accommodation is more tax-efficient than renting it empty. But voices are being raised to put an end to this French specificity.
The rents of furnished rentals are taxable as industrial and commercial profits (BIC), those of empty rentals as property income. This distinction results in granting tax benefits to furnished rental companies, which significantly boost the profitability of their rentals.
Benefits that might disappear because, for some, they are unjustified economically and they are expensive for the state coffers.
The abatement of the micro-BIC diet
Your rents are subject to a simplified tax regime when they do not exceed a certain ceiling: micro-BIC regime in the case of furnished rentals and micro-property regime in the event of empty rentals. In the first case, you benefit from a 50% reduction on your taxable rents, increased to 71% in the case of the rental of furnished tourist accommodation or guest rooms. In the second case, you benefit from a reduction of 30%.
A report by the Conseil des Prélèvements Obligatoires (CPO) recommends reducing this rate difference, which creates a market distortion between furnished and unfurnished apartments. It proposes subjecting furnished renters to the micro-property regime, while raising the rate of the abatement to 40% in order to take account of their furnishing expenses.
130 million euros.
The difference in rates between micro-BIC and micro-foncier generates a loss of income tax and
