Tougher taxation
According to the government, an amendment increasing the tax burden on seasonal lettings was adopted by "mistake" in the Finance Act for 2024. Under the micro-BIC scheme, the allowance on rental income received by landlords has been reduced from 50% (for unclassified furnished tourist accommodation) and 71% (for classified accommodation and bed and breakfast) to a single allowance of 30%. And the maximum threshold for benefiting from this scheme has been lowered to €15,000 (excluding tax), compared with the previous threshold of €77,000 for unclassified furnished accommodation and €188,700 for classified accommodation and bed and breakfast. An additional allowance of 21% has been introduced for classified furnished tourist accommodation in rural areas. As these new rules are due to apply from this year, the government has indicated that taxpayers will be able to use the previous rules for their 2023 income to be declared in May.
Translated with DeepL.com (free version)
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