Blog | The Simplifie Reel regime: Frequently asked questions

The Simplifie Reel regime: Frequently asked questions

Questions and answers regarding the "régime réel simplifié"

Since the "régime réel simplifié" is not so simple as it looks like, we have raised underneath the frequents asked questions related to it.

.Questions

Answers

Does the “Simplifié Réel” regime become less beneficial when I have done paying back my loan interests or works to undertake ?

No: in most cases the “Simplifié Réel” allows to save a lot from taxe with the amortization mechanism in particular.

Therefore even though you do not have building work to undertake or loan interests to pay back it still can 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 exeeds €72600?

No: if your rental income is below €72600, you are basically registered to the micro-BIC regime with a 50% lump sum abatement. However you can opt for the “Simplifié Réel” regime by a simple mail.

If I register to the “Réel Simplifié” regime and that my revenue exeeds €72600, do I become a Profesional Furnished Renter?

No: For that your rental revenue need to represent the majority of your global income in order to be considered as a Professional Furnished Renter.

If I start a non-professional furnished rental activity in the “Réel Simplifié” regime, I am engaged for a minimum of 3 years?

In the Furnished rental business, you can start an activity and sell or retake your property at your will. A tax regime only engages you for the year of registration if you quit the option before the first of February of the concerned year.

If I amortize my property using the “Réel Simplifié” regime, does it impact the resale price?

No: In case of resale when as a non-professional furnished renter, amortization has no impact neither on the resale price nor on the value-added calculation.

I bought my property several years ago and do not rent it anymore. How I do I evaluate my property?

The important figure is the actual value of the property not the acquisition cost. To calculate this actual value, we suggest that you seek advice from a real estate expert.

I bought my property this year: what value should I use? can I deduct the acquisition cost?

 

The value to use for an acquisition that took place during the ongoing year is the acquisition cost.

For the deduction there are two possibilities:

  • You can augment the acquisition cost with the notary fees and management costs and amortize them as you do with the property itself.

  • You can keep the acquisition cost as it is and add these fees as charges for the activity

I did build work in my property I was living in it. Now I am renting it. What value should I use to calculate the amortization ?

To calculate the amount of amortizations you will have to take into account the added-value generated by these works.

Warning: you cannot sum the acquisition cost with the invoices for the works.

I bought a property this year, did restoration work and equipped it before renting it. How do I calculate the value of my property?

You have to use the acquisition cost. The expenses engaged can be added to the amortizable expenditure.

 

How can calculate the amortization of my property?


 

 

The calculation for the amortization consists in braking down the details of the cost: (land cost, building works, equipment ...) and determine an, amortization period for each of them.

A property is amortized on a period of 25 to 50 years, depending on your choice.

Without the assistance of and accountant amortization can appear to be hard to calculate. We are here to help you trough

Can I amortize a property bought 20 years ago?

You can amortize your property even if you bought it long ago. For that you need to declare the actual value. More precisely the estimated value of your property at the rental date.

I have equipment for which I have no invoices. Can I amortize them anyway?

 

On that concern the rule is that an invoice in necessary. Yet you can evaluate this equipment with regard to their market value, and then amortize them.

Note that you can only do this ONCE when starting your renting activity.

I intend to rent a furnished property under the “Réel Simplifié” what would be the consequence on the resale price taking into account the fact that I will amortize it?

The amortization of the property will have no impact on the its resale price. The added-value at resale is calculated on the acquisition cost and therefore does not take into account the amortization.


 

 

Is it possible to register as charges expenses linked to the management of my property such as: travel expenses, telephone subscription, laptop …)?

A charge should be feasible, likely and justified. As soon as the charge is useful to the exploitation of the property, and that you have the related invoices, you can amortize them. Most of non-professional furnished renter have only one property to manage. A permanent use of a laptop is therefore not justified. You can count the telephone invoices for the months spent seek clients but not the whole invoices

I did the building works by myself in my appartement, are deduct this as charges?

You can deduct the bought material but not your time spent working.

 

Can I register as charges the cost of your accounting assistance?

Yes, you can register them as accounting charges.

 

Want to know more ?

Contact us

Contact us and we’ll get back to you as soon as possible.

Our recent posts

“Empty rental” versus “furnished rental”: overview of these two investments
“Empty rental” versus “furnished rental”: overview of these two investments
21/07/2021 - French taxes

Comparison of the two options: The choice of the type of rental is one of the key elements for the success of your i ...

Read more
“Empty rental” versus “furnished rental” : comparaison of these two options from a fiscal point of view
“Empty rental” versus “furnished rental” : comparaison of these two options from a fiscal point of view
21/07/2021 - French taxes

As the choice of the type of rental is one of the key elements for the success of your investment, we offer you in the b ...

Read more
Selling a French property : what did the Brexit change ?
Selling a French property : what did the Brexit change ?
23/03/2021 - French taxes

Brexit brought lots of changes in many areas and of course your French property won't escape it. British people a ...

Read more
Top