Roche & Cie

Classification of a furnished tourist accommodation in France: tax advantage and procedure

25 Mar 2019

You rent your second home and think you already know about the different rights and obligations related to it. However, many people do not know that it is possible to request the classification of their accommodation in order to benefit from tax advantages.

If you are still hesitating to take the plunge, be aware that the “furnished tourist accommodation (meublé de tourisme)” classification gives you the right to a flat-rate allowance of 71%!

This article describes the procedure for obtaining the classification of your furnished tourist accommodation.

What is a furnished tourist accommodation?

A furnished apartment is a residential property of the villa, apartment, studio, gîte type for the exclusive use of a temporary

The rental of tourist accommodation is seasonal, the tenant must reside there for a short period of time. The maximum duration is 90 days or 12 consecutive weeks.

To be qualified as furnished, the accommodation must include in particular:
– living furniture: table, chairs, etc…
– a bedding including a duvet or blanket,
– a cooking plate,
– a refrigerator,
– kitchen utensils…

By clicking on the link below, you will find the complete list, established by decree, of the elements that a dwelling must include to qualify as furnished. : https://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000030967884

If you are a homeowner and you want to rent furnished accommodation, remember to check that the condominium regulations do not prohibit rental.

 

What is the furnished tourist accommodation classification?

This request is optional.

The classification of a tourist apartment indicates a level of comfort and equipment to the customer.

Tourist accommodation is divided into one of the categories expressed by the number of stars rising according to their comfort, set by decree” (Code du Tourisme-Art D324-2).

There are 5 categories ranging from 1 to 5 stars.

The classification is valid for 5 years.

Your accommodation will be “judged” according to a classification grid containing 112 criteria divided into 3 main chapters:

  • equipment and facilities,
  • customer service,
  • accessibility and sustainable development.

 

Why ask for the classification of a furnished tourist accommodation?

There are several advantages to applying for a classification of a tourist apartment:

  • a guarantee of quality and transparency on the proposed accommodation service that facilitates the rental of the property;
  • the possibility for the owner to join the National Agency for Holiday Cheques (ANCV), thus allowing the landlord to offer this means of payment.
  • The income generated by the furnished rental activity is in principle taxed in the category of industrial and commercial profits (BIC).

These revenues can be taxed under the “micro” regime if they do not exceed a threshold of €70,000 per year. This threshold is raised to 170,000 € (per year) when the furnished property is classified.

The classification also provides a significant tax advantage since the income, if it does not exceed the above-mentioned threshold, gives rise to a flat-rate allowance of 71%, compared to only 50% in traditionally furnished rental.

 

How do I apply for a classification of a tourist accommodation?

To obtain your classification, you must have your property visited by an accredited organization.

Within one month of the visit, the organization must provide you with a report and a control grid as well as a proposal for a classification decision.

Upon receipt of the certificate, you have 15 days to contest the proposed classification.

In the absence of a response after this deadline, the classification will be considered as accepted.

You can request the classification of your furnished accommodation from the accredited or approved organization of your choice.

You can download, at the following address, the table of organizations accredited by the French Accreditation Committee:

https://www.classement.atout-france.fr/les-organismes-accredites

It is still preferable to choose an accredited organization in the locality where the housing to be classified is located.

IMPORTANT:

Whether your accommodation is classified or not, you must declare your furnished accommodation to the town hall.

Depending on the city, you must also obtain a change of use authorization.

You can consult our specific articles on this point.


Cabinet Roche & Cie, English speaking accountant in Lyon, France.
Specialist in Real-Estate and Non-resident taxation.