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Income Tax - Income from Furnished Rental

Verified 01 January 2023 - Directorate for Legal and Administrative Information (Prime Minister)

Income tax: 2023 2022 income tax return

Published on 1 January 2023

This page is updated for the 2022 tax return.

However, forms, online services and information documents are not yet available for the 2023 campaign. They will be posted as soon as they are available.

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).

The rules differ for 2022 revenues and 2023 revenues.

Revenue 2022

Taxation depends on the type of furnished accommodation you rent:

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General case

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

These are industrial and commercial benefits (BIC)

You are considered non-professional rental if one of the following 2 conditions is met:

  • Annual revenue from this activity by all members of your tax centre are less than €23,000
  • The income (rents of the furnished) is less than the total amount of other income from your tax household (wages, other BIC: titleContent,...).

Occasional rental of a room in your home

Revenues from the occasional furnished rental are taxable in the BIC: titleContent.

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

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

Usual rental of a room in your home

Income from usual furnished rental is taxable in the BIC: titleContent.

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 of €160 per month.

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

The micro BIC gives you the right to abatement of 50%. The actual plan allows you to deduct your expenses.

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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 2022 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 not pay any tax.

Real profit plan

If your annual revenue collected in 2022 does not exceed €72,600, you may voluntarily choose the real profit.

The election was due before the 2021 tax return deadline (spring 2022).

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.

In practice, you can deduct certain expenses from your furnished rents that you actually incurred in the interest of your business. You have to justify it.

For example, you can deduct depreciation the purchase price of the goods (housing and furniture).

If you see a deficit (more charges than rents), you can deduct it from your income from your furnished rental non-professional of the same year and the following 10 years.

You can deduct the deficit from your total income only if you are a professional furnished rental company.

Rental income exceeding €72,600

If your annual revenue collected in 2022 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.

In practice, you can deduct certain expenses from your furnished rents that you actually incurred in the interest of your business. You have to justify it.

For example, you can deduct depreciation the purchase price of the goods (housing and furniture).

If you see a deficit (more charges than rents), you can deduct it from your income from your furnished rental non-professional of the same year and the following 10 years.

You can deduct the deficit from your total income only if you are a professional furnished rental company.

FYI  

If it's 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 with tourism classified

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 2022 does not exceed €176,200, the micro-BIC (micro company) applies.

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 not pay any tax.

FYI  

Rental of a rural cottage entitles the micro-BIC only if it is classified as furnished with tourism.

Real profit plan

If you rent a furnished flat or a bed and breakfast and your annual income in 2022 does not exceed €176,200, you may voluntarily choose the real profit.

The election was due before the 2021 tax return deadline (spring 2022).

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.

In practice, you can deduct certain expenses from your furnished rents that you actually incurred in the interest of your business. You have to justify it.

For example, you can deduct depreciation the purchase price of the goods (housing and furniture).

If you see a deficit (more charges than rents), you can deduct it from your income from your furnished rental non-professional of the same year and the following 10 years.

You can deduct the deficit from your total income only if you are a professional furnished rental company.

Rental income exceeding €176,200

If you rent a furnished flat or a bed and breakfast and your annual income in 2022 exceeds €176,200, the real profit dialogue box.

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

In practice, you can deduct certain expenses from your furnished rents that you actually incurred in the interest of your business. You have to justify it.

For example, you can deduct depreciation the purchase price of the goods (housing and furniture).

If you see a deficit (more charges than rents), you can deduct it from your income from your furnished rental non-professional of the same year and the following 10 years.

You can deduct the deficit from your total income only if you are a professional furnished rental company.

FYI  

If it's 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.

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.

Who shall I contact

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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 2042 C-PRO.

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

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

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

To income 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

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

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

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

To income 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 there (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.

Revenue 2023

Taxation depends on the type of furnished accommodation you rent:

Répondez aux questions successives et les réponses s’afficheront automatiquement

General case

You are required to 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 non-professional rental if one of the following 2 conditions is met:

  • Annual revenue from this activity by all members of your tax centre are less than €23,000
  • The income (rents of the furnished) is less than the total amount of other income from your tax household (wages, other BIC: titleContent,...).

Occasional 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 dwelling 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. This device is open until 31 December 2025.

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 (amount 2022) in Ile-de-France
  • €142 (amount 2022) 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 of €160 per month.

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

The micro BIC gives you the right to abatement of 50%. The actual plan allows you to deduct your expenses.

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General case

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

Rental income not exceeding € 77 700
Micro BIC

If your annual revenue does not exceed €77,700, 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 not pay any tax.

Real profit plan

If your annual revenue does not exceed €77,700, you may voluntarily choose the real profit.

Option must be exercised before the deadline for filing the 2023 return 2022 revenues (spring 2023).

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.

In practice, you can deduct certain expenses from your furnished rents that you actually incurred in the interest of your business. You have to justify it.

For example, you can deduct depreciation the purchase price of the goods (housing and furniture).

If you see a deficit (more charges than rents), you can deduct it from your income from your furnished rental non-professional of the same year and the following 10 years.

You can deduct the deficit from your total income only if you are a professional furnished rental company.

Rental income exceeding € 77 700

If your annual revenue exceeds €77,700, 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.

In practice, you can deduct certain expenses from your furnished rents that you actually incurred in the interest of your business. You have to justify it.

For example, you can deduct depreciation the purchase price of the goods (housing and furniture).

If you see a deficit (more charges than rents), you can deduct it from your income from your furnished rental non-professional of the same year and the following 10 years.

You can deduct the deficit from your total income only if you are a professional furnished rental company.

FYI  

If it's 1re or 2e year your annual revenue exceeds €77,700, 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 with tourism classified

Rental income not exceeding € 188 700
Micro BIC

If you rent a furnished tourist or a bed and breakfast, and your annual income does not exceed €188,700, the micro-BIC (micro company) applies.

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 not pay any tax.

Rental of 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 €188,700, you may voluntarily choose the real profit.

Option must be exercised before the deadline for filing the 2023 return 2022 revenues (spring 2023).

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.

In practice, you can deduct certain expenses from your furnished rents that you actually incurred in the interest of your business. You have to justify it.

For example, you can deduct depreciation the purchase price of the goods (housing and furniture).

If you see a deficit (more charges than rents), you can deduct it from your income from your furnished rental non-professional of the same year and the following 10 years.

You can deduct the deficit from your total income only if you are a professional furnished rental company.

Rental income exceeding €188,700

If you rent a furnished tourist or a bed and breakfast and your annual income exceeds €188,700, the real profit dialogue box.

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

In practice, you can deduct certain expenses from your furnished rents that you actually incurred in the interest of your business. You have to justify it.

For example, you can deduct depreciation the purchase price of the goods (housing and furniture).

If you see a deficit (more charges than rents), you can deduct it from your income from your furnished rental non-professional of the same year and the following 10 years.

You can deduct the deficit from your total income only if you are a professional furnished rental company.

FYI  

If it's 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.

Depending on your situation (location and personal use of the rented property), you will have to pay the company property 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.

Who shall I contact

The income you receive in 2023 will be due in April 2024.

Who can help me?

Find who can answer your questions in your region