With no risk of non-payment, little risk of deterioration, and the chance to meet new people and share their experiences, more and more individuals with rental properties or second homes are turning to seasonal rentals to make ends meet. The reason for this popularity? Airbnb, the leading platform for renting vacation homes between private individuals, makes the process much easier. Nevertheless, even as a private individual, there are certain obligations to be met in order to comply with the rules.
When is a separate account mandatory?
Anyone carrying on a business in their own name is required to have an account dedicated to their activity. While auto-entrepreneurs have long been exempt from this obligation, this has no longer been the case since 2017. The only particularity of auto-entrepreneurs is that they are not obliged to open a business account, but can just as easily choose to open a second personal account or opt for a bank's special auto-entrepreneur offer.
What is the purpose of a dedicated account?
First and foremost, a dedicated bank account is designed to limit fraud. In fact, by grouping all transactions linked to an activity in a single account, it is much easier for the tax authorities to carry out their checks.
From the entrepreneur's point of view, a separate account simplifies the accounting process. In the case of property rental, management via a separate account provides an overview of the costs involved in maintaining the property and the income it has generated. This makes it easy to assess the profitability of the operation.
Is it compulsory to have a separate account when renting out a property?
Since we're talking about a one-to-one rental, we'd be tempted to say that a separate account isn't compulsory. In reality, however, it's not quite as simple as that.
Your rental income is less than €23,000 a year
As long as your annual rental income remains below €23,000, you retain your status as a private landlord. You therefore declare your rental income in the "Revenus des locations meublées non professionnels" category on your 2042 tax return.
In this case, you are not required to open a second bank account to manage your Airbnb rental. You can do so to more easily manage the inflow and outflow of money linked to the rental, but it's not a legal obligation.
Your rental income exceeds €23,000
As soon as the annual income generated by your seasonal rental(s) exceeds the €23,000 threshold, you must pay social security contributions, as this goes beyond the scope of taxable asset management. Income must therefore be declared in the Industrial and Commercial Profits (BIC) category of your tax return.
To pay social security contributions, you need to be affiliated with the RSI, and therefore have a professional status. This can be as simple as micro-entrepreneur status, provided your income remains below the €70,000/year threshold. You then benefit from the micro-BIC regime, i.e. you are taxed on your income after a 50% allowance. However, the simple fact of having to opt for a professional status means that you become subject to the obligation of holding an account dedicated to your activity, even if it remains secondary.
If your annual income exceeds €70,000, you can no longer opt for the micro-BIC scheme, and must give up micro-entrepreneur status. This means that your expenses are deducted in full from your income, unlike under the micro-BIC scheme, which involves a flat-rate deduction. From this point on, you are obliged not only to have a dedicated account, but also to ensure that it is a business account.
Why is it worth having a professional status?
As you can see, having a professional status requires you to have a second bank account. However, this has significant advantages over a non-professional rental status.
More overnight stays for more revenue
Since 2017, a non-professional furnished rental operator cannot exceed 120 rental nights per year, i.e. just under a third of the year. By opting for at least a micro-entrepreneur regime, you have the possibility of offering more nights without being in the illegal.
Expenses taken for what they are
If you opt for a professional status other than micro-enterprise, you are subject to the real BIC regime. This means that all your expenses are deducted from your income. This can be advantageous if your expenses exceed 50% of the income you generate. You are then only taxed on your company's profits. This option can be interesting if you pay someone to maintain the property, welcome guests or carry out work on your rental property.
In addition to the requirement for a second account depending on your status, it can be really convenient to open an account dedicated to your holiday rental business. At Anytime, our online payment service, we offer both a personal and a business account. This way, having a separate account doesn't cost you anything extra, and whatever status you wish to adopt, your business account will adapt to any situation. Quick to open and easy to manage from the dedicated application, the Anytime account is the ideal partner for Airbnb rentals.
