Last updated:
Key takeaways
- Unfurnished rental income is taxed as revenus fonciers; furnished rental income is taxed as Bénéfices Industriels et Commerciaux (BIC).
- The micro-foncier regime (unfurnished, income under 15,000 EUR/year) gives an automatic 30% deduction — no receipts needed.
- The micro-BIC regime (furnished, income under 77,700 EUR/year) gives an automatic 50% deduction (71% for meublés de tourisme classés).
- Under the régime réel, landlords deduct actual expenses: mortgage interest, property management, insurance, repairs, and depreciation (for BIC only).
- Social charges (prélèvements sociaux) of 17.2% apply on top of income tax for French residents.
- Non-resident landlords pay a minimum 20% income tax rate plus 17.2% social charges (or a flat 30% PFU on some income).
The two tax regimes
French rental income taxation splits into two tracks depending on whether the property is let furnished or unfurnished.
Unfurnished: income is classified as revenus fonciers and declared on Form 2044 or Form 2042. This is the standard track for long-term, unfurnished lets.
Furnished: income is classified as BIC (Bénéfices Industriels et Commerciaux) and declared on Form 2031 or Form 2042-C-PRO. This applies to furnished apartments, whether let long-term or as short-stay accommodation.
This distinction has significant practical consequences. Not just the rate, but the deductible expenses, the depreciation rules, and the social charges treatment differ between the two tracks.
This guide covers private landlords (Loueurs en Meublé Non Professionnels, LMNP, and revenus fonciers). Professional furnished landlords (LMP) face different rules. Consult a tax adviser if your furnished rental income exceeds 23,000 EUR/year or represents more than 50% of your household income.
Unfurnished rentals: revenus fonciers
Landlords letting unfurnished properties choose between two sub-regimes, or are assigned one automatically based on their annual gross income.
Micro-foncier (automatic 30% deduction)
Available if gross unfurnished rental income does not exceed 15,000 EUR/year. A flat 30% deduction (abattement) is applied automatically to gross rental receipts — no itemised expenses are required. The remaining 70% is added to your other taxable income and taxed at your marginal rate.
This regime is simple and low-admin. It works best when actual deductible expenses are less than 30% of gross income — for example, if you own an unencumbered property with minimal maintenance costs.
Régime réel (actual deductions)
Mandatory when gross unfurnished rental income exceeds 15,000 EUR/year. Optional below that threshold — you can elect the régime réel if your actual expenses are higher than the 30% flat deduction would provide.
Deductible expenses under the régime réel include:
- Mortgage interest (not capital repayment)
- Property management fees
- Insurance (non-occupant owner insurance, PNO)
- Maintenance and repair costs (not capital improvements)
- Property tax (taxe foncière)
- Co-ownership charges (charges de copropriété)
- Depreciation of certain fixtures
Losses under the régime réel can be offset against other income up to 10,700 EUR/year. Excess losses carry forward for up to 10 years.
| Feature | Micro-foncier | Régime réel |
|---|---|---|
| Income threshold | Up to 15,000 EUR/year | No limit |
| Deduction | 30% flat | Actual expenses |
| Admin burden | Very low | Moderate to high |
| Best for | Low expenses | High expenses (mortgage, major works) |
| Losses deductible | No | Yes (up to 10,700 EUR) |
Furnished rentals: BIC (LMNP)
For most private landlords with furnished rental income, the relevant status is Loueur en Meublé Non Professionnel (LMNP). Income is classified as BIC and two sub-regimes apply.
Micro-BIC
Available when gross furnished rental income does not exceed 77,700 EUR/year (2025 threshold). An automatic 50% deduction applies to gross receipts. The remaining 50% is added to other taxable income at the marginal rate.
If the furnished property is classified as a meublé de tourisme classé (a rated holiday let, registered with the mairie), the deduction rises to 71% for qualifying income. See the warning below regarding recent legislative changes to this rate.
Régime réel LMNP
Under the régime réel, LMNP landlords can deduct all the expenses available under the unfurnished régime réel, plus:
- Accounting fees
- Depreciation of the property itself (amortissement du bien immobilier) — typically 2–3% per year of the property value, excluding land
- Depreciation of furniture and fittings — typically over 5 to 10 years
Depreciation is the key advantage of the LMNP régime réel over revenus fonciers. It can reduce taxable rental income to near zero for many years, particularly for recently acquired or mortgaged properties. However, it requires a professional accountant (expert-comptable) and the filing of Form 2031.
The micro-BIC 71% abattement for meublés de tourisme classés was significantly restricted by the Loi de Finances 2024. From 2024, the threshold drops to 15,000 EUR for non-classified meublés de tourisme in certain zones. Verify the current applicable threshold with a tax adviser before relying on this regime.
| Feature | Micro-BIC | Régime réel LMNP |
|---|---|---|
| Income threshold | Up to 77,700 EUR/year | No limit |
| Deduction | 50% (71% for classified holiday lets) | Actual expenses + depreciation |
| Depreciation | No | Yes |
| Best for | Low expenses | High asset value or mortgage |
| Admin | Very low | High (accountant recommended) |
Non-resident landlords
Non-residents receiving French-source rental income must file a French tax return (Form 2042 NR). The French tax authorities treat this income as arising in France regardless of the landlord's country of residence.
Key rules for non-resident landlords:
- Minimum income tax rate: 20% for income up to 28,797 EUR (2025 bracket); 30% above that threshold. These rates apply if the effective marginal rate calculated on worldwide income would be lower.
- Social charges: 17.2% applies in most cases. EU/EEA nationals covered by another member state's social security system may benefit from the reduced 7.5% solidarity levy instead.
- Tax treaties: France has double taxation conventions with most countries. The treaty may reduce the French withholding rate or provide a credit against tax due in the landlord's country of residence. The applicable treaty must be checked on a case-by-case basis.
- Filing deadline: Varies by country of residence — typically June to August each year. Specific deadlines are published annually by DGFIP.
Non-residents who do not file a French return risk late penalties of 10–40% plus monthly interest of 0.20%. DGFIP cross-checks rental income against platform data (Airbnb, Booking.com), landlord declarations, and bank records. Do not assume that income earned abroad on a French property falls outside French jurisdiction.
Filing your declaration
Unfurnished landlords
Add revenus fonciers to your annual income tax return (déclaration de revenus). Use Form 2044 for the régime réel; the micro-foncier is declared directly on Form 2042. The filing deadline is typically late May or early June for online filers — the exact date is set each year and varies by département.
Furnished landlords (LMNP)
Before letting a furnished property for the first time, register with the Centre de Formalités des Entreprises (CFE) at the Greffe du Tribunal de Commerce. This registration provides a SIRET number, which is required for all LMNP declarations.
File Form 2042-C-PRO for the micro-BIC regime, or Form 2031 for the régime réel. Form 2031 has an earlier deadline than the standard income tax return — typically mid-May for online filers.
Register for LMNP status before your first rental income arrives. Retroactive registration is possible but creates administrative complications and may delay or limit your ability to claim depreciation from the start of the letting period.
Frequently asked questions
Sources
- impots.gouv.fr — Direction Générale des Finances Publiques (DGFIP)
- legifrance.gouv.fr — Code Général des Impôts (CGI)
- service-public.fr — Official guidance on LMNP status and furnished lets
- bofip.impots.gouv.fr — Bulletin Officiel des Finances Publiques (administrative tax doctrine)
- anil.org — Agence Nationale pour l'Information sur le Logement
Social charges (prélèvements sociaux)
French residents pay prélèvements sociaux at a rate of 17.2% on rental income, in addition to income tax. This applies to both revenus fonciers and BIC rental income.
The 17.2% rate is made up of three components:
Social charges apply to net rental income after deductions. They are calculated and collected via the annual income tax return, not separately.
EU/EEA nationals resident in France and covered by another member state's social security system may be partially exempt — typically paying only the 7.5% solidarity levy rather than the full 17.2%. This is a complex area and professional advice is recommended.