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Income Tax - Income from Furnished Rental

Verified 08 avril 2021 - Legal and Administrative Information Directorate (Prime Minister)

The income you get from renting furnished premises, as non-professional furnished rental (NPMA), are subject to the progressive scale of income tax. They must be reported as Industrial and Commercial Benefits (BIC).

2020 income to be reported in 2021

You must report your income from the rental of furnished accommodation as a non-professional furnished rental property (NPMA). They constitute industrial and commercial profits (BIC).

You are considered to be a non-professional rental company if at least one of the following conditions is met:

  • Annual income from this activity by all household members is less than €23,000
  • Revenues are lower than the total amount of other income from the activities of the tax household (salaries, other BICs ...).

  FYI : income from the occasional rental of furniture may also be taxed in the BIC category.

You do not have to report income from renting (or subletting) part of your principal home.

The room(s) rented must be the principal residence of the tenant. This may be his temporary residence if he is a seasonal employee.

You must set the rental price within "reasonable" limits.

The annual rent must not exceed (per square metre of living space, excluding charges):

  • €190 in Ile-de-France
  • €140 in other regions

Depending on the rental income earned, you can choose between a plan micro-BIC and the taxation system real profit.

General case

Rental income not exceeding € 72 600

By default, the micro-BIC regime applies.

Micro BIC

If your annual revenue collected in 2020 does not exceed €72,600, the micro-BIC (micro company) applies.

The taxable benefit shall be equal to the income reduced by a lump sum reduction for 50%. Expense cannot be deducted.

If your recipes are less than €305, you will pay no tax.

Real profit plan

If your annual revenue collected in 2020 does not exceed €72,600, you may voluntarily choose the real profit.

Option must be exercised before 1to February 1re year for which you wish to benefit. The option is valid and is irrevocable for 2 years, unless the activity changes. It is tacitly renewed for 2 years.

You must determine your taxable net income by deducting expenses and expenses from your income.

Rental income exceeding € 72 600

If your annual revenue collected in 2020 is greater than €72,600, the real profit (which may be the actual simplified plan or the actual normal plan) applies.

You must determine your taxable net income by deducting expenses and expenses from your income.

However, if it is 1re or 2e year your annual revenue exceeds €72,600, you can benefit from the micro-BIC one more year. The taxable benefit shall be equal to the income reduced by a lump sum reduction for 50%. Expense cannot be deducted.

Guest rooms and furnished tourist classified

Rental income not exceeding € 176 200

By default, the micro-BIC regime applies.

Micro BIC

If you rent a furnished tourist or a bed and breakfast, and your annual revenue collected in 2020 does not exceed €176,200, the micro-BIC (micro company) applies.

However, if it is 1re or 2e if you exceed that limit, you can take advantage of that plan for an additional year.

The taxable benefit shall be equal to the income reduced by a lump sum reduction for 71%. Expense cannot be deducted.

If your recipes are less than €305, you will pay no tax.

  FYI : if you rent one or more rooms in your main dwelling to people who are passing through (bed and breakfast), you do not have to report the income if it does not exceed €760 VAT per year.

Renting a rural lodging no longer qualifies for the scheme micro-BIC.

Real profit plan

If you rent a furnished flat or a bed and breakfast and your annual income in 2020 does not exceed €176,200, you may voluntarily choose the real profit.

Option must be exercised before 1to February 1re year for which you wish to benefit.

The option is valid and is irrevocable for 2 years, unless the activity changes. It is tacitly renewed for 2 years.

You must determine your taxable net income by deducting expenses and expenses from your income.

Rental income exceeding € 176 200

If you rent a furnished flat or a bed and breakfast and your annual income in 2020 exceeds €176,200, the real profit (which may be the actual simplified plan or the actual normal plan) applies.

You must determine your taxable net income by deducting expenses and expenses from your income.

Depending on your situation (location and personal use of the rented property), you will have to pay the company assessment. Consult the company Tax Service (EIS) of the location where the rented accommodation is located to determine whether or not you will have to pay this tax.

Micro BIC

If you are on the plan micro-BIC (micro company), you must enter the gross amount of your income on your online tax return or with the form n°2042 C-PRO.

You must be registered in the Mermaid directoryInsee. This formality is free.

Contact the Registry of the Commercial Court of the place of the rented dwelling using the declaration form:

Declaration of Commencement of Activity - Self-Employed Individual (P0i)

Cerfa n° 11921*05 - Ministry of Economy
Other number : P0i

Once you register, you get a SIRET number to carry on your supplementary income tax return.

To tax return, see the following documents:

Real profit plan

You must complete form 2031-SD and return the amounts on your tax return #2042 C-PRO.

Supplementary declaration of income of self-employed professionals

Cerfa n° 11222 - Ministry of Finance
Other number : 2042-C-PRO

You must be registered in the Mermaid directoryInsee. This formality is free.

Contact the Registry of the Commercial Court of the place of the rented accommodation using the form:

Declaration of Commencement of Activity - Self-Employed Individual (P0i)

Cerfa n° 11921*05 - Ministry of Economy
Other number : P0i

Once you register, you get a SIRET number to carry on your supplementary income tax return.

To tax return, see the following documents:

  Please note : if you rent a furnished property to a clientele who make a short stay (day, week or month) and who do not live there, you have to pay payroll taxes if your annual revenue exceeds €23,000.

2021 income

In 2022, you will be required to report your 2021 income from renting furnished accommodation as a non-professional furnished rental (NPMA). They constitute industrial and commercial profits (BIC).

You are considered to be a non-professional rental company if at least one of the following conditions is met:

  • Annual income from this activity by all household members is less than €23,000
  • Revenues are lower than the total amount of other income from the activities of the tax household (salaries, other BICs ...).

  FYI : income from the occasional rental of furniture may also be taxed in the BIC category.

You do not have to report income from renting (or subletting) part of your principal home.

The room(s) rented must be the principal residence of the tenant. This may be his temporary residence if he is a seasonal employee.

You must set the rental price within certain limits.

The annual rent must not exceed (per square metre of living space, excluding charges):

  • €191 in Ile-de-France
  • €141 in other regions

Depending on the rental income earned, you can choose between a plan micro-BIC and the taxation regime applicable as of right real profit.

General case

Rental income not exceeding € 72 600

Micro BIC

If your annual revenue does not exceed €72,600, the micro-BIC (micro company) applies.

The taxable benefit shall be equal to the income reduced by a lump sum reduction for 50%. Expense cannot be deducted.

  Please note : if your recipes are less than €305, you will pay no tax.

Real profit plan

If your annual revenue does not exceed €72,600, you may voluntarily choose the real profit.

Option must be exercised before 1to February 1re year for which you wish to benefit. The option is valid and is irrevocable for 2 years, unless the activity changes. It is tacitly renewed for 2 years.

You must determine your taxable net income by deducting expenses and expenses from your income.

Rental income exceeding € 72 600

If your annual revenue exceeds €72,600, the real profit (which may be the actual simplified plan or the actual normal plan) applies.

You must determine your taxable net income by deducting expenses and expenses from your income.

However, if it is 1re or 2e year your annual revenue exceeds €72,600, you can benefit from the micro-BIC one more year. The taxable benefit shall be equal to the income reduced by a lump sum reduction for 50%. Expense cannot be deducted.

Guest rooms and furnished tourist classified

Rental income not exceeding € 176 200

Micro BIC

If you rent a furnished tourist or a bed and breakfast, and your annual income does not exceed €176,200, the micro-BIC (micro company) applies.

However, if it is 1re or 2e if you exceed that limit, you can take advantage of that plan for an additional year.

The taxable benefit shall be equal to the income reduced by a lump sum reduction for 71%. Expense cannot be deducted.

If your recipes are less than €305, you will pay no tax.

  FYI : if you rent one or more rooms in your main dwelling to people who are passing through (bed and breakfast), you do not have to report the income if it does not exceed €760 VAT per year.

Renting a rural lodging no longer qualifies for the scheme micro-BIC.

Real profit plan

If you rent a furnished tourist or a bed and breakfast and your annual income does not exceed €176,200, you may voluntarily choose the real profit.

Option must be exercised before 1to February 1re year for which you wish to benefit.

The option is valid and is irrevocable for 2 years, unless the activity changes. It is tacitly renewed for 2 years.

You must determine your taxable net income by deducting expenses and expenses from your income.

Rental income exceeding € 176 200

If you rent a furnished tourist or a bed and breakfast and your annual income exceeds €176,200, the real profit (which may be the actual simplified plan or the actual normal plan) applies.

You must determine your taxable net income by deducting expenses and expenses from your income.

Depending on your situation (location and personal use of the rented property), you will have to pay the company assessment. Consult the company Tax Service (EIS) of the location where the rented accommodation is located to determine whether or not you will have to pay this tax.

The income you receive in 2021 will be due in April 2022.