It is worth knowing that the French make the distinction between:

• receiving rent only, and
  
  
• receiving rent, but also receiving money for providing additional services such as for laundry, cleaning, breakfast, telephone, other meals, cycle rentals, and so on.

The distinction might not seem relevant, but it is very important.

Why? Well, because receiving rental income alone does not necessitate registering the business activity and paying all the relevant business activity charges on the resultant income. Yes, the income will be taxed, and the income will suffer the 11% social charges, but nothing more.

On the other hand, where the income is not only that of the rent for the property, but is additionally income for other activities, then the person does have to register with the “Chambre de Commerce”. As a result, they will be given an activity number and have to contribute to the various organisations for retirement, death, family allowances, invalidity, incapacity and so on … all adding quite substantial costs to outgoings.

However, there is another issue arising from this distinction which may not affect most people but is to do with the means of tax assessment. Furnished rental income in general is assessed under the ‘Micro-Bic’ system, but there are pecuniary limits that apply in order to be entitled to be assessed under the system, these being:

• up to 76 300 € of income from property rentals alone, and
  
  
• up to 23 000€ of income from property rentals and other allied sources of income

Extreme care also has to be taken with the amount of income actually received, as if the rental income is the main source of income for the household, or is more than 50% of the household’s income, then the activity will be classed as a professional activity, necessitating registration with the “Chambre de Commerce” … and all that this will then entail ...

So, if in doubt, or you wish more details, please contact The Annett Consultancy 
on 04 90 38 66 01.