A friend moving in with you after a separation, an elderly parent leaving their home for a few months, an adult child who hasn’t signed their first lease yet: in each case, the administration considers it free accommodation. And in each case, specific steps must be taken, both by the host and the guest, to avoid a tax reassessment or a reminder from the CAF.
CAF Housing Allowance: The Trap of Late Declaration
The first priority when welcoming someone for free is not the contract or the certificate. It’s the declaration to the CAF, from both sides.
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The hosted person must report their situation in their personal space as soon as the first month of occupancy begins. If they receive RSA, the activity bonus, or APL, the CAF applies a housing allowance that reduces the amount of these aids. This allowance is automatically deducted, whether the guest pays a contribution towards expenses or not.
The host must also update their declaration, especially if they receive housing assistance. Welcoming an additional occupant changes the declared household composition, and thus the calculation of rights.
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In recent years, the CAF has strengthened its checks on late-declared free accommodations. Regularizations sometimes cover several months, with recovery of overpayments on APL, RSA, and the activity bonus. Precisely dating the start of the accommodation in the declaration limits these reminders. It is advised to note the actual arrival date and to update online in the days that follow, even before writing anything on paper.
Before starting the administrative procedures, one can declare free accommodation by following a guide that details each step for both the host and the guest.
Certificate of Free Accommodation: Content and Legal Value
The sworn certificate of free accommodation is the basic document. It serves to justify the residence of the hosted person with most organizations (CAF, taxes, Pôle emploi, prefecture for a residence permit).
What the certificate must contain
- The full identity of the host (name, first name, date and place of birth, address of the accommodation).
- The identity of the hosted person, with the same information.
- A clear mention that the accommodation is free of charge, without financial compensation.
- The start date of the accommodation (not just the date of writing the document).
- The signature of the host, accompanied by a copy of their ID and proof of residence in their name.
This document does not need to be notarized. A simple letter, dated and signed, is sufficient. Templates can be found on the Service-Public.fr website.
When an Occupancy Contract Becomes Necessary
When the hosted person occupies a separate dwelling alone (secondary residence, vacant studio), a simple note is no longer sufficient. We then talk about a loan for use, also called commodat. This written contract specifies the expected duration, the conditions for maintaining the property, and the terms of restitution.
Without this document, the guest has no rights to the accommodation, but the host also has no formal proof of the agreement. In case of conflict, the absence of a contract complicates the process of recovering the property within a reasonable timeframe.
Tax Declaration: Primary Residence and Secondary Residence
From a tax perspective, the declaration of free accommodation involves two distinct aspects.
Host’s Income Declaration
If the host welcomes someone into their primary residence and does not receive any rent, there is nothing to declare in rental income. No rent means no taxable income. However, the host must mention the number of occupants of the accommodation during the annual occupancy declaration.
Secondary Residence Occupied for Free by a Relative
This is the case that generates the most confusion. Since the removal of the housing tax on primary residences, the tax administration requires a precise declaration of occupancy for each property. A secondary residence lent for free to a relative must be reported as such in the “Manage my real estate” section on impots.gouv.fr.
If this declaration is not made, the property risks being classified as vacant housing, which leads to the tax on vacant housing in tight areas. Conversely, a property declared as a secondary residence while occupied for free by a third party may generate an undue housing tax in the name of the host.
The hosted person, if they occupy this accommodation as their primary residence, may be liable for the housing tax on secondary residences depending on the circumstances. Returns on this point vary according to local situations and interpretations by tax services.
Hosted Person’s Home Insurance: A Common Gray Area
When hosting someone in their own home, the host’s multi-risk home insurance generally covers damages caused by an occupant, under civil liability. But this coverage has limits.
The hosted person’s personal belongings (computer, clothes, furniture) are not covered by the host’s contract. To be protected, the hosted person must take out their own home insurance or, at a minimum, a liability insurance.
In the case of a property made available in its entirety (secondary residence, vacant apartment), the hosted person should take out home insurance in their name. Without this, in the event of a claim (water damage, fire), neither the host nor the guest would be compensated for damages to the contents, and liability towards neighbors would remain poorly covered.
Notifying their insurer of the presence of an additional occupant or a housing loan helps avoid a claim being contested due to inaccurate risk declaration. A simple call or a message via the client area is sufficient in most cases.
The key point to remember about all these procedures: the declaration of free accommodation is not limited to a signed paper between two people. It involves distinct tax, social, and insurance obligations. Each week of delay in updating with the CAF or the tax authorities increases the risk of regularization. It is better to address the three aspects (CAF, taxes, insurance) in the same week as the actual arrival of the hosted person.