What taxation applies to nude rentals?

The taxation of bare rental is a major criterion in choosing a real estate investment. It depends on the regime chosen by the landlord and its level of land income.

Land income

Rents collected are taxed in the property income category. Two tax regimes apply:

The micro-real estate:

Accessible if the annual rents do not exceed €15,000.

Standard allowance of 30% on declared income.

Simplicity of management, but less interesting if the landlord has many charges.

The real regime:

Deduction of actual expenses: loan interest, management fees, insurance, works, property tax.

Allows generating a land deficit attributable to the overall income (up to €10,700/year).

More complex but often more fiscally advantageous.

Practical example

A lessor receives €12,000 in rents and €8,000 in expenses (interest + work). Under the real regime, it will only be imposed on €4,000, or even benefit from a land deficit depending on its situation.

Tax benefits

Optimization thanks to renovation work.

Possible integration into a transmission strategy via SCI.

Interesting property deficit to reduce the overall tax.

Conclusion

The taxation of bare rental is flexible according to the investor’s strategy. The real regime is preferred to optimize its profitability and reduce taxes, especially in case of works.