TLDR: Furnished rental applies to the provision of a furnished accommodation without additional services. As soon as the operator offers at least three services (breakfast, regular cleaning, provision of household linen, or customer reception), the activity shifts to parahotellerie, excluding it from the furnished rental tax regime. Exceptions apply if the services are provided by the tenant or if the rental concerns residential premises without additional services.
Criteria for distinguishing between furnished rental and parahotellerie
Furnished rental involves providing equipped accommodation without the landlord intervening in the management or maintenance of the premises. However, if the operator provides or offers at least three of the following services:
- breakfast,
- regular cleaning of the premises,
- provision of household linen,
- reception (even non-personalized) of customers, the activity is reclassified as parahotellerie and no longer falls under the furnished rental tax regime.
Exceptions related to additional services
If the additional services (breakfast, cleaning, etc.) are provided by the tenant rather than the landlord, the latter can retain the furnished rental regime, provided that:
- the contract is a lease agreement (property rental),
- the landlord is not associated with the tenant's economic results.
Special cases of co-ownership units
Renting to an operator who independently manages a hotel or parahotel activity on co-ownership units remains subject to the furnished rental regime if:
- the premises are for residential use,
- the rental does not include any additional services.
Applicable tax regime
Furnished rental falls under industrial and commercial profits (BIC). In contrast, parahotellerie, due to the nature of the services offered, is subject to a separate tax regime, excluding it from the furnished rental regime.
Practical consequences
Reclassification as parahotellerie entails specific tax obligations, particularly regarding declaration and treatment of income. It is essential to verify the nature of the services offered to determine the applicable regime.
Limits and precautions
The distinguishing criteria are based on the nature of the services and their number. A case-by-case analysis is necessary to avoid unwanted tax reclassification.