Do you need to pay income tax in France if you live in the UK?

Regulations/Tax Issues
1

We live in the UK and rent our French ski apartment through AirBNB.

We declare all income through our annual UK tax return. Our understanding was that this would exempt us from having to declare income tax in France also.

We’ve just received a message from AirBNB that has made us wonder whether this is correct (see excert below).

Anyone else come across this?

All help appreciated.

Thanks
Simon

As a valued member of our host community, we’d like to remind you where to find important information that you may need to file your annual tax return this year.

The reporting of your income is independent from the tax withholding requirements implemented in France from 1 January 2019, and independent from the automatic reporting of users’ earnings by platforms to the Tax administration. This means that you will still need to report the gross income that you earned in 2019 to the French Tax Administration between April and June 2020.

2

You will need to report the income in both countries - but you can deduct the tax already payed in France, in UK

3

Many thanks Bettina

Are you in the same or similar position?

Simon

4

Whoever told you, you only pay tax in one country is sadly misinformed @simonopt

I would suggest you speak to an accountant about this who has experience in British/French tax affairs so you can set this up on the most tax effective way.

Ask for recommendations on one of the French expat forums.

5

Many thanks Helsi. Very helpful. I’m now clear on the situation and can act accordingly.

6

Greetings, we are newbies, uk residents, and have our first three airbnb reservations for our property in the southern French Alps. For the last 10+ years, we have let it our via a local agent, who canl no longer help us. We declare our income (paid into our French account) to the french tax authority only. having been advised that income taxed at source need not be declared in the uk. So I hope I’m right! If your income is paid into your uk account you may be ok.
I have enlisted the services of a local lady who already acts as a concierge for some other airbnb’ers.
I now need your opinion please: I am totally confused over whether airbnb automatically takes security deposits. Do you take a security deposit, if so how much? secondly, do you give guests the option of bringing their own linen and towels?

7

No they do not. Even if you require one and try to claim on it, Airbnb will ask the guest to consent to having their credit card charged for any reason.

8

As UK (tax) residents, then dependent on your income in France, if you become legal (i.e. declare all earnings and utilise the tax agreements between UK and France) then either expect a bill from HMRC, or a refund from HMRC.

All depends on what you earned, what you declare and how you intend to proceed.

By using Airbnb, you are localising your income to the UK and, depending on what side of bed the person who reviews your next return got out of, they may ask for an accounting for the period that you’ve owned the property.

If you need to pay tax, you usually report your foreign income in a Self Assessment tax return. But there’s some foreign income that’s taxed differently.

Good luck…

JF

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9

No that’s not correct. In your situation I would have an accountant check your tax liabilities. @Brian

For FAQs around running your Airbnb do have a look at the Airbnb Help website, it covers issues such as deposits, cancellation policies, extenuating circumstances policies, Airbnb guarantee etc.

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