More and more people in France are choosing to live together, not just because it’s cheaper and easier to share living costs, but also because of the tax benefits. One example of this is when different generations live together or swap homes for services, like the ToitChezMoi.com platform. Let’s take a closer look at these benefits.
The tax benefits of cohabitation
If you live with someone, whether they’re a friend, roommate, or family member, there are some tax benefits to consider.
For example, if you are over 60 and you have someone under 30 stay with you, you can get a tax reduction. If you’re over 60 and you host someone under 30 without charging them, you can get a tax reduction. This is to encourage people of different ages to live together, which can help build stronger social relationships and support.
You might also not have to pay housing tax. In some cases, people living together may not have to pay this tax. Whether or not you can get this exemption depends on how much money you earn and what your living arrangement is.
You can also deduct your housing expenses. You can get some of the money you spend on living together back if you meet the right conditions. This can reduce the amount of tax you have to pay and save you a lot of money.
Find out more about cohabitation through ToitChezMoi.com
The ToitChezMoi.com platform offers a new way for people to swap housing for services. This means that people of all ages and backgrounds can live together and exchange services like help with household chores or having someone to talk to. Here is an example to show the advantages of this type of living arrangement :
Marie-Jeanne, a 70-year-old retired host, welcomes Julie, a 22-year-old student, in exchange for a few hours of help per week. Marie-Jeanne has signed an intergenerational solidarity cohabitation contract with Julie, where she lets her room for 9 months in Paris. The room is 12 square metres, and Marie-Jeanne is paying 320 euros a month.
Which types of housing can get tax benefits ?
Which types of housing can get tax benefits ?
- the housing is where the host lives.
- it is also the main home of anyone under 31 who lives with them.
- the amount that can be charged is decided each year by the tax authorities. In 2021, the maximum amount was €190 per square metre in Île-de-France and €140 in other regions.
So, Marie-Jeanne’s annual contribution amount is €2,980 (9 months x €320).
This means she doesn’t have to pay taxes on €2,850 (15 square metres x €190) and just has to declare €130 of BIC (business income) (€2,980 – €2,850).
Please note : If the yearly amount of the financial contribution is more than the tax exemption threshold, the extra amount will be declared as industrial and commercial profit (BIC), according to Article 35 bis of the General Tax Code. Finally, if the small financial contribution does not exceed €190 per year per square metre rented to the person living with you, you do not need to declare it.
This means that the host, Marie-Jeanne, doesn’t have to pay housing tax, and Julie, her cohabiting traveller, can find affordable accommodation.
According to feedback from ToitChezMoi.com users, many participants report improved quality of life through this form of cohabitation. Additionally, a significant proportion of senior participants benefit from tax exemptions, representing a notable savings of €500 each year.
Conditions to benefit from tax advantages
To get the tax benefits for living together, there are some conditions to meet :
- First, you need to write a contract to formalise the cohabitation. This contract should include the terms of the service exchange and the obligations of each person.
- Declaration of Income : The money received for services must be declared to the tax authorities. However, you might not have to do this if the income is below a certain limit, especially if you are a senior citizen hosting a young person.
- You must also follow the income limits. Tax benefits are often dependent on income limits. So, it is important to check the limits for each type of exemption.
So, living together can be good for your taxes, especially if you use a website like ToitChezMoi.com to organise it. As well as helping you make friends and get support, it can save you a lot of money by not having to pay tax. To make the most of these benefits, it is important to meet the necessary conditions and know about the available support.
Ready to earn some extra income ?
Yes, you heard correctly. Hosting a Voyageur lets you make new friends and get great services, all while saving money. So, don’t wait any longer ! Join ToitChezMoi for free and start benefiting from the extra income offered by the tax advantages.
