Real estate. Can you be tax-exempt by renting out part of your home?


One of the rooms in your main house is not occupied? You can rent it out while escaping taxation on the rental income received. For this, you must respect the rent ceilings in force.

A provision in force until December 31, 2023

Nothing prevents you from renting a room that is part of your main home. The tenant must make it his main residence or his temporary residence (if he has a seasonal work contract). The rental must be furnished.

Advantage: the rents you receive may be exempt from income tax. This provision, included in article 35 bis of the General Tax Code, is in force until December 31, 2023.

Rent amounts to be respected in 2022

For it to be exempt from tax, the rental price must be set within “reasonable limits” indicates the Official Bulletin of Public Finances (Bofip). Each year, the administration re-evaluates the two rent ceilings (charges not included) to be respected according to the regions.

For 2022, rents must not exceed €192 per m² of living space in Île-de-France and €142 per m² in other regions, i.e. + €1 for these two amounts compared to 2021.

For example, in the provinces, if you rent out an 18 m² room located in your main residence, you cannot rent it for more than €213 per month, excluding charges (18 x 142 = 2,556 ÷ 12 = 213).

And if it is a bed and breakfast?

Until December 31, 2023, if you offer one or more rooms in your main residence for rent as guest rooms, the rents you receive may be exempt from income tax. The condition: these rental income must not exceed €760 per year.

What taxation applies if you exceed the 2022 rent ceilings?

If the rents you charge exceed the ceilings in force in 2022, the rental income related to the rental of part of your main residence will be subject to income tax in the category of industrial and commercial profits (BIC).

Two tax regimes exist, in particular depending on the amount of rent collected: the micro-BIC regime or the real regime.


Source: Le Progrès : info et actu nationale et régionale – Rhône, Loire, Ain, Haute-Loire et Jura | Le Progrès by www.leprogres.fr.

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