During the Olympics, the financial appetite of certain owners could lead to significant tax expenditures.
The Olympic Games have led to a real madness in the rental of accommodation in Paris, Île-de-France and in the various cities which host the biggest sporting competition in the world. Owners do not hesitate to take advantage of this global event to skyrocket their bills and ensure comfortable income. Not without arousing strong criticism as the question of housing is flammable in France with the difficulties in finding housing that many people experience.
As the law does not regulate prices, everyone is free to set the amount of their choice. A real goose that lays the golden eggs which, however, requires a good knowledge of the tax rules. Let’s be clear from the outset: with good support on the subject, it is easily possible to limit or even avoid paying taxes on the revenue collected. A 100% legal opportunity that requires the help of an accountant.
However, this does not mean that one can expect to earn hundreds and thousands without paying anything to the State. Being too greedy could result in an additional payment to Urssaf. Thus, one rule must be scrupulously respected so as not to mechanically increase your tax bill: if your rental income is greater than €23,000, it must not be greater than the other income (salaries, etc.) that you you received during the year.
Let’s take two examples to understand clearly. You have received 25,000 euros in rental income over one year: if you earn more than €25,000 net annually before taxes through your work, you will not pay Urssaf contributions on your rental income; if you have earned less than 25,000 euros through your employment, you will have to pay money to Urssaf. The amount is, at least, 1145 euros, but increases very quickly.
So, if you wish to rent your accommodation during the Olympics, a formula must be applied to calculate as accurately as possible the income which will allow you to earn a little money without paying a contribution to Urssaf. This is the total annual pre-tax income divided by the number of nights you wish to rent. By this calculation you obtain the maximum amount for the night.
For example, if you earn 25,000 euros per year net before taxes and you want to rent for a month for the Olympics and Paralympics, you should not exceed 892 euros per night (25,000/28). However, some already easily exceed this price. A little research on a famous peer-to-peer rental site allowed us to find Parisian apartments at much higher prices, most often located in popular, touristy areas close to Olympic sites such as the Invalides or the Champ de Mars. But not everyone has perhaps thought to calculate their income in order to avoid paying Urssaf which could arrive as a nasty post-Olympic surprise when it comes time to file their taxes.
Small subtlety, if your tax return is joint with your partner, this allows the ceiling to be increased. The total amount of your annual income can be estimated using your last tax return (read the line “Salaries, pensions, net annuities) or from the impots.gouv.fr website. In the “Withholding tax” section. source”, then “Consult the history of all your deductions”, you can add up all the tax bases that are displayed. The rents received in 2024 will have to be declared for taxes in spring 2025.