Roche & Cie

Collaborative Economy: individuals renting their property will now pay social contributions

28 Oct 2016

MEPs finally approved this Thursday, October 27, article 10 of the 2017 Social Security Financing Bill which aims to make individuals renting property via collaborative platforms to pay social security contributions beyond a certain income threshold.

Article 10 creates an obligation of affiliation to the independent workers regime for those who put their property for rent with a deductible up to € 23,000, and for those who receive, from that, an annual income greater than € 3,860.

You should know that the day before, Wednesday, October 26, after a long debate, an adjournment and a public ballot, Article 10 of the Social Security Financing Bill for 2017 was suppressed by 18 votes against 14 . Then, after a second discussion, MEPs finally adopted an amendment by the government, restoring the article.

Article 10 clarifies and simplifies social law applicable to the digital economy and takes into account the proposal of the rapporteur to fix in the law itself, the turnover threshold of a leasing business of property to € 7,720 in 2016.

The Government states in the explanatory memorandum of its Amendment No. 1 that:

The debates in public session did not allow the rapporteur to defend its proposal directly fix the threshold to be considered in the legislation, while the Government said it was favorable during the discussion of the article. This amendment proposes to retain this compromise, which will limit the obligations of membership to activities whose income levels show a professional nature.

For furnished rental business, affiliate threshold would remain at € 23,000 in revenue, not to break the existing line with the tax provisions.

Finally, the measure seeks to facilitate administrative processes and social self-employed who use platforms: the possibility will be offered to platforms to support them in their affiliate efforts, declaration and payment of social security contributions.


the threshold to be subject to social charges for furnished by renters is set at € 23,000 in annual revenue. Below, rentals activities are considered unearned income and subject to social levies on capital in the same conditions as the income tax.

Affiliate threshold for goods leasing activities (car, in particular) will meanwhile set at € 7,720 in annual revenue.

Source: fiscal online

Cabinet Roche & CieChartered Accountant in France (Lyon).
Specialist in Real Estate and Non-Residents’ taxation.