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Income Tax - Income from Furnished Rental

Verified 07 avril 2022 - 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).

2021 income to be reported in 2022

General case

You must report your income from the rental of furnished accommodation as a non-professional furnished rental property (NPMA). These are 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 ...).

Casual rental of a room in your home

Income from the occasional furnished rental is taxable in the BIC category.

However, you are exempt if you meet the following 2 conditions:

  • You rent one or more rooms in your main house to people passing through
  • Revenue collected does not exceed €760 VAT per year.

Usual rental of a room in your home

Income from the usual furnished rental is taxable in the BIC category.

However, you do not have to report income from renting (or subletting) a portion 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 shall not exceed (per square metre of living area, excluding loads):

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

Example :

For a 10 m room2 in the parisian region, the rent you receive is exempt if it is less than €1,910 for one year. Maximum €159 per month.

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

The micro BIC entitles you to abasement of 50%. The actual plan allows you to deduct your expenses.

General case

Rental income not exceeding € 72 600

The micro-BIC diet applies if you do not choose the actual diet.

Micro BIC

If your annual revenue collected in 2021 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 2021 does not exceed €72,600, you may voluntarily choose the real profit.

Option was to be exercised before 1to February 2021. It is then tacitly renewed every year, unless you give up.

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

Rental income exceeding € 72 600

If your 2021 annual revenue 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 tourist furniture

Rental income not exceeding € 176 200

The micro-BIC diet applies if you do not choose the actual diet.

Micro BIC

If you rent a furnished tourist or a bed and breakfast, and your annual revenue collected in 2021 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.

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 2021 does not exceed €176,200, you may voluntarily choose the real profit.

Option was to be exercised before 1to February 2021. It is then tacitly renewed every year, unless you give up.

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 2021 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 Property Assessment (CFE).

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*06 - 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:

The check boxes are indicated in the practical brochure on income tax .

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*06 - 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:

The check boxes are indicated in the practical brochure on income tax .

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

2022 income

General case

You must report your income from the rental of furnished accommodation as a non-professional furnished rental property (NPMA). These are 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 ...).

Casual rental of a room in your home

Income from the occasional furnished rental is taxable in the BIC category.

However, you are exempt if you meet the following 2 conditions:

  • You rent one or more rooms in your main house to people passing through
  • Revenue collected does not exceed€760 TTC per year

Usual rental of a room in your home

Income from the usual furnished rental is taxable in the BIC category.

However, you do not have to report income from renting (or subletting) a portion 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 shall not exceed (per square metre of living area, excluding loads):

  • €192 in Ile-de-France
  • €142 in other regions

Example :

For a 10 m room2 in the parisian region, the rent you receive is exempt if it is less than €1,920 for one year. Maximum €160 per month.

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

The micro BIC entitles you to abasement of 50%. The actual plan allows you to deduct your expenses.

General case

The micro-BIC diet applies if you do not choose the actual diet.

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 the deadline for filing the 2022 return 2021 revenue. You must send a letter to your tax department.

The option for the actual plan is then tacitly renewed every year, unless you give up.

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 tourist furniture

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.

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 the deadline for filing the 2022 return 2021 revenue. You must send a letter to your tax department.

The option for the actual plan is then tacitly renewed every year, unless you give up.

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 2022 will be due in April 2023.