As a business manager (manager, president, general manager) you may need company accommodation as part of your duties and professional travel. Putting company accommodation as part of your company's expenses is authorized by law but is strongly regulated and supervised.

What is a benefit in kind?

A benefit in kind is a good or service granted for personal use, free of charge or in return for a deduction the amount of which is less than the actual value of the good or service provided.

These benefits can take various forms. This may include the provision of a telephone, accommodation, a car, etc.

Objects or services provided and used solely in a professional manner are therefore not considered to be a benefit in kind. A company vehicle will not be considered a benefit in kind if the travel is exclusively of a professional nature.

When there is mixed use, both personal and professional, the value of the personal part of the benefit will be considered as additional salary for the manager/corporate officer. The benefit in kind will then be subject to social security contributions, around 60%, as well as income tax. This salary will then be deductible from your company's results.

The specificity of company housing

Company accommodation is defined as accommodation made available by the company for an employee or manager. The latter will have professional and personal use.

It is possible that your work requires you to travel regularly to another city, which then pushes you to rent company accommodation. The company will then be able to pay the rent for this accommodation, which will allow you to enjoy the property throughout the year. In this case, it will be necessary to calculate a benefit in kind for all the days you make personal use of this property. Notably weekends for which you are not supposed to work or on days when you are in another city. The company will directly cover the share of rent as well as charges intended for days of professional use. The portion relating to the other days will be considered as a personal benefit in kind subject to social security contributions and tax.

We therefore advise you to establish a professional and personal distribution of the use of company accommodation. This means that you personally pay a share and the company will bear the professional share. This will allow you to avoid the cost of social charges and to be in a more comfortable position in the event of a tax or social audit. In addition, make sure that the professional part is not excessive in relation to your professional pace.