New Law Regarding Vacation Rentals in Paris
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New Law Regarding Vacation Rentals in Paris
Today's Le Parisien reported that yesterday, deputies in Paris passed a new amendment to the laws concerning short-term vacation rentals.
The new law requires AirBnB and other online portals to provide an automatic declaration of the revenue charged by the people who list apartments using these websites.
People who earn in excess of 23,000 EU per year will be responsible for paying taxes.
This will be troublesome for many people who accept the majority of rental fees in cash. Banks only allow a certain amount in cash deposits per week, to combat money-laundering.
The new law requires AirBnB and other online portals to provide an automatic declaration of the revenue charged by the people who list apartments using these websites.
People who earn in excess of 23,000 EU per year will be responsible for paying taxes.
This will be troublesome for many people who accept the majority of rental fees in cash. Banks only allow a certain amount in cash deposits per week, to combat money-laundering.
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This is a recommendation to be forwarded to the Assemblée National for their confirmation, expected by later this month. If ultimately approved, which is anticipated, the measures will not go into effect until 2019. The initial idea is to capture revenues which otherwise go unreported and untaxed. However, this data will also help authorities track those renting apartments illegally.
The impact will probably most acutely be felt by those operating multiple illegal, short term apartments. It will probably have a lesser effect on those renting their vacation or secondary apartments on a part time basis.
The new law should have little to no effect on legal rentals; those registered and approved by the city or principal residences offered on a part time basis by an owner/occupant.
The impact will probably most acutely be felt by those operating multiple illegal, short term apartments. It will probably have a lesser effect on those renting their vacation or secondary apartments on a part time basis.
The new law should have little to no effect on legal rentals; those registered and approved by the city or principal residences offered on a part time basis by an owner/occupant.
#3
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He.
Been saying for years the real issue is tax evasion.
Hidalgo needs money, Hollande needs money, Fillipn will need money. Where best to get it than from (unscrupulous) (foreign) rich investors ?
Who is going to complain (except Adrian Leeds who could not understand the law) ?
Answer : nobody who votes.
Better than Pareto !
Been saying for years the real issue is tax evasion.
Hidalgo needs money, Hollande needs money, Fillipn will need money. Where best to get it than from (unscrupulous) (foreign) rich investors ?
Who is going to complain (except Adrian Leeds who could not understand the law) ?
Answer : nobody who votes.
Better than Pareto !
#4
Are we to believe there are no unscrupulous French rich investors??
But it would be an interesting analysis to see if there are more foreign or French investors in short term rental investments.
Money usually talks and it doesn't matter where one comes from. NO? or YES?
But it would be an interesting analysis to see if there are more foreign or French investors in short term rental investments.
Money usually talks and it doesn't matter where one comes from. NO? or YES?
#5
If the main issue is collection of taxes I would happily pay tax in addition to the current rental price of apartments I have rented from individuals in Paris if that would allow me to continue renting apartments rather than resorting to hotels.
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No, there are several main issues, but following the revenue stream seems to be, right now, the most effective way of going after the owners of apartments rented illegally. 2019 is a long way off making Paris pretty slow to follow up compared to Barcelona, Berlin, New York City, Miami Beach even London
https://www.theguardian.com/technolo...r-london-hosts
Could the reduction in tourism have anything to do with this?
And of course, if's always those "furinerz" who are guilty of these infractions.
https://www.theguardian.com/technolo...r-london-hosts
Could the reduction in tourism have anything to do with this?
And of course, if's always those "furinerz" who are guilty of these infractions.
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The main issue is not just collection of the daily taxe de sejour, far from it. I am having a little trouble understanding the OP's first message or the purpose of it. It sounds like it ios saying that Airbnb etc must list the annual income of the owners of some place for rent. They couldn't know that as they would have to know their income tax return. I think perhaps it means they must post the revenue from that particular website/company gained from listings on that website. But it isn't clear at all what that means. Because perhaps Paris is different, but in the US, you have to pay taxes based on your total income (although some parts may be taxed differently, like capital gains), not just based on income from one source. That implies there is a law that you only have to pay income taxes if you earn at least 23,000 euros from such rentals, which I find an unusual system if that is true. What if you already earned 100K euros a year, you can earn another 22K without paying any income tax on it?
There isn't any way in the world a renter can pay the owner's income tax.
There isn't any way in the world a renter can pay the owner's income tax.
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Not difficult Christina
1. The various rental platforms can easily keep track of bookings/rentals, and therefore income from bookings.
2. Owners who earn more than E23,000 in bookings/rentals will be reported to the tax authority by the respective platforms.
3. The ax falls
Also implied in the original post, because of limits on cash bank deposits, owners will not be able to get around the law easily by taking cash . .. unless it's stored in the mattress for future use.
1. The various rental platforms can easily keep track of bookings/rentals, and therefore income from bookings.
2. Owners who earn more than E23,000 in bookings/rentals will be reported to the tax authority by the respective platforms.
3. The ax falls
Also implied in the original post, because of limits on cash bank deposits, owners will not be able to get around the law easily by taking cash . .. unless it's stored in the mattress for future use.
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That implies there is a law that you only have to pay income taxes if you earn at least 23,000 euros from such rentals, which I find an unusual system if that is true.
Our Airbnb hosts in London (we rented a room) said that this was exactly their case--paying taxes on the rental revenue higher than 5000£ (I might be mistaken as to the exact amount)
Our Airbnb hosts in London (we rented a room) said that this was exactly their case--paying taxes on the rental revenue higher than 5000£ (I might be mistaken as to the exact amount)
#10
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There is a base limit of revenue on which income taxes must be paid in France. If individuals don't have a lot of recourse to deductions, tax shelters, etc, the base limit applies.
Envierges has got it right. The City wants a paper trail to follow, pure and simple. So do the banks.
I doubt that it will take as long as 2019 to make more progress on this, since the hotel lobby is working overtime to push the issue. This will probably all settle down when the decision about the Olympics is resolved, if it doesn't go to Paris.
Nikki - you may continue to rent apartments, as long as they are legal. If you find an individual resident, and he wants to rent during his vacation period, you can rent from him - now that the income will be reported and he has to declare and pay taxes.
Envierges has got it right. The City wants a paper trail to follow, pure and simple. So do the banks.
I doubt that it will take as long as 2019 to make more progress on this, since the hotel lobby is working overtime to push the issue. This will probably all settle down when the decision about the Olympics is resolved, if it doesn't go to Paris.
Nikki - you may continue to rent apartments, as long as they are legal. If you find an individual resident, and he wants to rent during his vacation period, you can rent from him - now that the income will be reported and he has to declare and pay taxes.
#11
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Iris. There are no more rich french investors....
After taxes, ISF, and ... François Hollande.
I am sure it will be better with their new president. Maybe we can rich the ultimate goals where rich investors can pay no taxes, like D Trump.
After taxes, ISF, and ... François Hollande.
I am sure it will be better with their new president. Maybe we can rich the ultimate goals where rich investors can pay no taxes, like D Trump.
#13
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I fail to see the OP's point about cash deposits from Airbnb rentals. All Airbnb payments are paid into the host's account electronically. There is no exchange of cash.
As far as taxes, Airbnb in the States automatically supplies a statement of the host's earnings once a year to the Government and to the host, so the appropriate amount of taxes can be paid. I do not see why Airbnb would not do the same with French rentals.
As far as taxes, Airbnb in the States automatically supplies a statement of the host's earnings once a year to the Government and to the host, so the appropriate amount of taxes can be paid. I do not see why Airbnb would not do the same with French rentals.
#14
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nukesafe - it is not only AirBnB, but all other short-term rental websites which are concerned. HomeAway, TA, VRBO, Arbritel, all of them will be forced to report directly to the tax man - whether they use cash, paypal, credit cards or bitcoin.
#15
I have paid cash to host, paypal to host and paid credit card via VIP in NJ. Last trip we stayed extra nights and just gave host cash. no middle man involved. There are always ways around taxes. Ask our president elect.
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