Q&A – The automatic reporting of income to French Tax Authorities

As part of the amended budget law for 2016 and the “Fraud Act” of October 2018, the French parliament voted new obligations for platforms operating in France. Every digital platform that operates in France is required to report information including income earned and the number of transactions made to tax authorities. This reporting will take place on a yearly basis, beginning in January 2020 for income generated in 2019. This measure is not retroactive and does not concern your income generated in 2018. The data transmitted to the tax authorities is strictly confidential and will not be shared with third parties.

Below we will explain your tax obligations as a Homes or Experiences host, and recommend that you seek advice from a tax specialist in case of any specific questions.

If, after reading these items, you still have questions, we suggest you seek advice from a tax specialist. To this end, we partnered with PriceWaterhouseCoopers (PwC)  to provide you with a tax guideYou can find more information here

General questions

As a host on Airbnb, do I have to file for taxes on my income?

Yes, one must declare any income from the 1st euro earned. When you rent out a short-term rental, including on platforms, the income you earn is taxable and must be reported to tax authorities as part of your annual income tax declaration.

This also applies to income earned by Airbnb “Experience” hosts (more information here).

Where can I find information about the amount of my earnings on Airbnb?

You can access at any time the summary of your transactions in the “progress” tab on your Airbnb account. At the beginning of each year, Airbnb also sends you an email to remind you that your income is to be declared.

What is the tax regime applicable to income generated from short-term rentals?

For short-term rentals, you can benefit from the “Micro-BIC” regime if your income is less than 70,000 €. This Micro-bic scheme allows you to obtain a 50% tax deduction on your annual income (or 71% for furnished apartments with “rankings”).

See the summary table made by the Ministry of Finance on tax rules for short term rentals for individual or professional hosts. You can also visit the website of our our partner Legalplace for more information.

You will find relevant information on:
– Tax obligations: here
– Social obligations (if you earn more than 23,000€ per year): here

Please note that if you rent one or more rooms in your primary residence, you are exempt from income tax on the proceeds of these rentals if it does not exceed € 760 including tax per year.

Example: I rent my apartment 30 days and earn 2000€ per year. How much will I pay in taxes?

I declare according to the “micro-BIC” regime (I benefit from an automatic 50% tax deduction)

  • For an income of 2000 euros in one year, I pay taxes on 50% of my annual income, at the rate determined by my tax bracket.
  • If my tax rate is 15%, this equates to: 2000 x 50% = 1000 x 15% = 150 € of income taxes.
  • Added to this amount a fixed rate of 17.2% of CSG tax (social charges), ie 2000 x 50% = 1000 x 17.2% = 172 € of CSG tax
  • The total of the tax is therefore 150 +172 = 322€

I declare according to the “real scheme”: I can deduct charges from my revenues.

More information on the website of the Ministry of Economy and Finance.

What is the automatic transmission of income?

What is the automatic income transmission by platforms?

In January 2020, all platforms operating in France, including Airbnb, will be required to provide the French tax authorities with a certain amount of information pertaining to you for the previous year, including the earnings per user.

This transmission will occur every year.

Are all platforms concerned?

Yes, all platforms operating in France are concerned, whatever their field of activity (transport, short-term rentals, car rentals, DIY, etc.). There are some exceptions, but that don’t apply to short-term rentals.

What information will be transmitted by all platforms?

All platforms operating in France will be required to share the following information with the tax administration.

For all users:

  • Income generated on the platform for the previous year (between January 1st and December 31st).
  • Number of transactions made on the platform
  • Bank details (IBAN)

For individuals:

  • Name, Surname, Date of birth, email, telephone number, home address
  • For users who have earned more than 1000€ per year, all platforms will have to request a verification of identity, by one of the following means: copy of identity card or passport OR Tax ID number (available on your tax forms or on your personal account on www.impots.gouv.fr)

For professionals: 

  • Business name
  • Address of establishment on January 1st of the year of transmission
  • VAT number or, if there is none, identity numbers as defined in Article R. 123-221 of the Commercial Code or, for a non-resident company, its registration number with the tax administration of the country of residence.

What periods are concerned?

All platforms including Airbnb will have the obligation to transmit in January 2020 all the information for the year 2019. Then in January 2021 for the year 2020, etc.

Attention: this obligation is not retroactive. This means that the transactions you made in 2018 are not affected by this automatic transmission.

Does the automatic transmission of information change the tax rules applied to my income generated on Airbnb?

No, whether professional or private, automatic transmission does not change the tax regime associated with your income. More information on this page or on this summary made by the Minister of Economy and Finance, as well as here for information on social charges.

Is there a link with the withholding tax (“Prélèvement à la source”) ?

There is no withholding on the part of the platforms. Income generated by users will be treated according to the same rules as those applicable to all revenues without third-party collectors.

With the reform of the withholding tax, starting in 2019, a deposit will be calculated from the information known to the tax authorities on your 2017 income (especially from the non-professional furnished rental) and taken from your bank account. Its amount will be adapted to 1 September 2019, when your 2018 earnings will be known by the administration. You can manage your monthly deposit by deleting it or by modifying it on your account on impots.gouv.fr.

For more information on the withholding tax and its impact on non-employee income, log on to your private area on impots.gouv.fr or contact 0 809 401 401 (not surcharged, from January 2019) .

I am co-host, does this law affect me?

Yes, all users who earned income on Airbnb are concerned, hosts and co-hosts.

Will the data sent to the tax authorities be shared with local authorities or other third parties?

No, data transmitted to the tax authorities is strictly confidential and will not be shared with third parties.

Will my tax return be automatically completed?

No, the tax administration will not pre-fill the income tax return sheets. It is each user’s responsibility to fill out their tax slip.

Nevertheless, the administration will send you a document summarizing the income that you have collected on each platform that you will have to report in your tax return.

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