Since the “régime réel simplifié” is not so simple as it looks like, we have summarized below the frequently asked questions regarding this subject.
| Does the ‘Simplifié Réel’ regime become less beneficial when I have repaid the interest on my loan or do not have construction works to declare? | No: in most cases the “Simplifié Réel” allows you to save a lot of tax, especially through the depreciation mechanism. So even if you have no construction work to do or interest to pay on loans, it can still be more advantageous compared to the micro-BIC regime. You can test our free simulator here. |
| Can I can benefit from the ‘Simplifié Réel’ regime only if my rental income exceeds €72.600? | No: if your rental income is less than €72.600, you are automatically registered to the micro-BIC regime with a 50% lump-sum abatement. However, you can opt for the “Simplifié Réel” regime by a simply sending an e-mail. |
| If I register to the ‘Réel Simplifié’ regime and my revenue exceeds €72.600, do I become a Professional Furnished Renter? | No: To be considered a Professional Furnished Tenant, your rental income must make up the majority of your total income. |
| If I start a non-professional furnished rental activity in the ‘Réel Simplifié’ regime, am I engaged for a minimum of 3 years? | In the Furnished rental business, you can start an activity and sell or take back your property at will. A tax regime will only apply to you for the year of registration if you stop the option before the first of February of the year in question. Please note that you need to close the rental activity. Selling your property does not automatically end your rental activity. If you need to close it, we can help you. |
| If I amortize my property using the ‘Réel Simplifié’ regime, does it impact the resale price? | No: In the case of resale as a non-professional furnished tenant, depreciation does not affect the resale price, nor the calculation of the value added. |
| I bought my property several years ago and do not rent it out anymore. How I do I evaluate my property? | The most important figure is the actual value of the property, not the purchase cost. To calculate this actual value, we recommend that you seek the advice of a real estate expert. |
| I bought my property this year: what value should I use? Can I deduct the purchase cost? | The value to use for an acquisition made in the current year is the acquisition cost. For the deduction, there are two possibilities: You can increase the acquisition value by the notary fees and management fees and depreciate them as you do with the property itself. You can leave the acquisition value unchanged and add these costs as expenses for the activity. |
| I did construction work in my property when I lived in it. Now I rent it out. What value should I use to calculate the depreciation? | To calculate the amount of depreciation, you must take into account the added-value generated by these works. Warning: you cannot add the acquisition cost to the invoices for construction work. |
| I bought a property this year, restored and furnished it before renting it out. How do I calculate the value of my property? | You have to use the acquisition cost. The expenses incurred can be added to the depreciable expenses. |
| How can I calculate the depreciation of my property? | The calculation of depreciation consists of listing the details of the costs: (land cost, construction works, equipment …) and for each of them determine a depreciation period. A property is depreciated over a period of 25 to 50 years, depending on your choice. Without the help of an accountant, depreciation can seem difficult to calculate. We are here to help you. |
| Can I depreciate a property bought 20 years ago? | You can depreciate your property even if you bought it a long time ago. To do so, you need to declare the actual value. More precisely, the estimated value of your property on the rental date. |
| I have equipment for which I have no invoices. Can I depreciate them? | In this regard, the rule that an invoice is necessary, applies. Nevertheless, you can evaluate this equipment based on their market value, and then depreciate it. Note that you can only do this ONCE at the start of your rental activity. |
| I intend to rent out a furnished property under the ‘Réel Simplifié’. What would be the impact on the resale price, taking into account that I will depreciate it? | The depreciation of the property will not affect the resale price. The added-value at resale is calculated on the acquisition cost and therefore does not take the depreciation into account. |
| Is it possible to enter costs related to the management of my property (travel expenses, phone subscription, laptop, etc.) as expenses? | A charge must be feasible, probable and justified. Once the charges are useful to the operation of the property, and you have the corresponding invoices, you can depreciate them. Most non-professional furnished property landlords have only one property to manage. Thus, permanent use of a laptop is not justified. You can count the phone bills for the months you are looking for clients, but not the entire invoices. |
| I did the construction work by myself in my appartement, can I deduct this as charges? | You can deduct the material purchased, but not the time spent on the work. |
| Can I enter the cost of your accounting assistance as charges? | Yes, you can register them as accounting charges. |