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The advantages of non-professional furnished rentals Discover the system of non-professional furnished rentals: advantages and news
Non-professional furnished rental program: –
Maître DAMY, expert in real estate law, sheds light on the non-professional furnished rental regime and its advantages, particularly in terms of VAT recovery. This system is attractive for owners who choose to engage in this specific form of rental management.
To benefit from this advantageous device, the owner must rent his accommodation furnished, the income generated not exceeding 23,000 euros per year or 50% of the owner’s total income. Owners have two tax regime options:
- Real regime: If the owner chooses to amortize his rented property over a period of 20 to 25 years.
- Micro-BIC regime: Applicable when the total rent received is less than 70,000 euros per year, allowing a 50% reduction in property income.
Recent Updates and Changes:-
Another advantageous option is available for owners investing in new properties within serviced residences. In this case, the owners can recover the VAT and benefit from a tax reduction of 11% on the price excluding tax under the Censi-Bouvard system. However, this benefit is capped at an annual investment of 300,000 euros, leading to a reduction cap of 33,000 euros over 9 years.
A recent modification of the threshold took place on January 1, 2020, as part of a three-year update of the scale. The transition threshold between the micro-BIC regime and the simplified real regime is raised from 70,000 euros to 72,600 euros annually.
In addition, the adoption of the finance law for 2020 (article 21) led to the abolition of the tax on micro-housing. This amendment had implications for landlords engaging in micro-furnished rentals, providing them with a more favorable tax environment.
For more detailed information, the finance law for 2020 (article 21) can be consulted at the following link: Link to article 21 of the finance law for 2020 .
As real estate law can be complex and subject to change, seeking the advice of a legal professional specializing in real estate law, such as Maître DAMY, can ensure that owners make informed decisions and maximize the benefits available under the non-professional furnished rental . diagram .
