Renting a secondary residence: what is the tax impact?

Renting a secondary residence: what is the tax impact?
Garden in Eure, France

As it will be a furnished rental, the rents collected will be subject to income tax on industrial and commercial profits (bics). Philippe LISSAC/GODONG / photononstopquestion to an expertHow will I be imposed if I place my secondary residence for rent when I do not use it? If you plan to rent your secondary residence when you do not use it, you must make a statement to the municipality and, sometimes, obtain a prior authorization for change of use.

In respect of local taxes, the property will remain subject to land and housing taxes, but may also generate the corporate land contribution and the residence tax. As it will be a furnished rental, the rents collected will be subject to income tax on industrial and commercial profits (bics). Fictitious rentsand according to situations will be applied social debits or social contributions.

Article reserved for our subscribers also read how to earn a secondary residenceAttention, if you deduce the depreciation in lmnp, you will need to include in your taxable rents “fictive rents”, i.e. The rents of the periods during which you can enjoy your residence (the unleased periods).