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Income tax - Income from furnished rentals

Verified 08 June 2023 - Legal and Administrative Information Directorate (Prime Minister)

The income you earn from renting furnished premises, as a non-professional furnished renter (LMNP), are subject to the progressive income tax schedule. They must be reported as industrial and commercial profits (BIC).

The rules differ depending on whether it's 2022 revenue or 2023 revenue.

Revenues 2022

Taxation depends on the type of furnished accommodation you rent:

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General case

You have to report the income you earned from renting furnished premises as a non-professional furnished rentals agent (NMPA).

They're industrial and commercial profits (BIC)

You're considered non-professional renter if at least one of them the following 2 conditions are met:

  • The annual revenue from this activity for all members of your tax shelter are less than €23,000
  • Revenues (rents for furniture) are less than the total amount of other income from your tax household (wages, other BIC: titleContent,...).

Occasional rental of a room from your home

Income from occasional furnished rentals is taxable in the category of BIC: titleContent.

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

  • You rent one or more rooms of your main dwelling to people passing through
  • The revenue collected does not exceed €760 TTC per year.

Usual rental of a room from your home

Income from ordinary furnished rentals is taxable in the category of BIC: titleContent.

However, you do not have to report income from renting (or subleasing) part of your principal residence.

The rented room(s) must be the tenant's primary residence.

This can 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 meter of living space, excluding loads):

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

Example :

For a room of 10 m2 in the parisian region, the rent you receive is exempt if it is less than €1,920 for one year. Let a maximum of €160 per month.

Depending on the rental income obtained, you can choose between a plan micro-BIC and the so-called actual profit.

The micro-BIC entitles you to a 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 scheme applies if you do not choose the actual scheme.

Micro-BIC Diet

If your 2022 annual revenue does not exceed €72,600, the scheme micro-BIC (micro-company) is applicable.

The taxable profit shall be equal to the revenue less a flat-rate reduction for expenditure on 50%.

Expenses cannot be deducted.

If your recipes are less than €305You will not pay any taxes.

So-called real profit scheme

If your 2022 annual revenue does not exceed €72,600, you can voluntarily choose the so-called actual profit.

The option was to be exercised before the 2021 tax filing deadline (spring 2022).

It is then tacitly renewed each year, unless you give it up.

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

In practice, you can deduct from the rents of your furnished rentals certain charges that you have actually borne in the interest of your business. You must be able to justify it.

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

If you're seeing a deficit (more expenses than rents), you can deduct it from your furnished rental income non-professional in the same year and the following 10 years.

You can deduct the deficit from your total income only if you are a commercial renter.

Rental income over €72,600

If your annual revenue in 2022 is more than €72,600, the so-called actual profit (which may be the simplified actual procedure or the normal actual procedure) shall apply.

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

In practice, you can deduct from the rents of your furnished rentals certain charges that you have actually borne in the interest of your business. You must be able to justify it.

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

If you're seeing a deficit (more expenses than rents), you can deduct it from your furnished rental income non-professional in the same year and the following 10 years.

You can deduct the deficit from your total income only if you are a commercial renter.

FYI  

If it's 1re or 2e year your annual revenues exceed €72,600, you can benefit from the scheme micro-BIC one more year. The taxable profit shall be equal to the revenue less a flat-rate reduction for expenditure on 50%. Expenses cannot be deducted.

Bed & Breakfast and furnished tourist classified

Rental income not exceeding € 176 200

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

Micro-BIC Diet

If you rent a furnished apartment or a bed and breakfast, and your annual revenue collected in 2022 does not exceed €176,200, the scheme micro-BIC (micro-company) is applicable.

The taxable profit shall be equal to the revenue less a flat-rate reduction for expenditure on 71%. Expenses cannot be deducted.

If your recipes are less than €305You will not pay any taxes.

FYI  

The rental of a country cottage is eligible for the scheme micro-BIC only if it is classified as furnished with tourist furniture.

So-called real profit scheme

If you rent a furnished apartment or a bed and breakfast and your annual revenue collected in 2022 does not exceed €176,200, you can voluntarily choose the so-called actual profit.

The option was to be exercised before the 2021 tax filing deadline (spring 2022).

It is then tacitly renewed each year, unless you give it up.

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

In practice, you can deduct from the rents of your furnished rentals certain charges that you have actually borne in the interest of your business. You must be able to justify it.

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

If you're seeing a deficit (more expenses than rents), you can deduct it from your furnished rental income non-professional in the same year and the following 10 years.

You can deduct the deficit from your total income only if you are a commercial renter.

Rental income exceeding €176,200

If you rent furnished tourism or a bed and breakfast and your annual revenue collected in 2022 exceeds €176,200, the so-called actual profit applies.

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

In practice, you can deduct from the rents of your furnished rentals certain charges that you have actually borne in the interest of your business. You must be able to justify it.

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

If you're seeing a deficit (more expenses than rents), you can deduct it from your furnished rental income non-professional in the same year and the following 10 years.

You can deduct the deficit from your total income only if you are a commercial renter.

FYI  

If it's 1re or 2e If you exceed this limit, you can benefit from this plan for an additional year. The taxable profit shall be equal to the revenue less a flat-rate reduction for expenditure on 71%. Expenses cannot be deducted.

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

Consult the company Tax Office (SIE) of the location where the rented accommodation is located to find out whether or not you will have to pay this tax.

Who shall I contact

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Micro-BIC Diet

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

You must be registered in the Mermaid Directory of theInsee: titleContent. This formality is free of charge.

It must be done online on the company formalities office.

Company Formalities Window

Once you have registered, you will get a SIRET number to be transferred to your supplementary income tax return.

To perform your tax return, see the following:

The check boxes are shown in the practical income tax brochure.

So-called real profit scheme

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

Supplementary declaration of income from self-employed occupations

You must be registered in the Mermaid Directory of theInsee: titleContent. This formality is free of charge.

It must be done online on the company formalities office.

Company Formalities Window

Once you have registered, you will get a SIRET number to be transferred to your supplementary income tax return.

To perform your tax return, see the following:

The check boxes are shown in the practical income tax brochure.

Please note

if you rent a furnished apartment to a clientele who stays for a short time (by the day, by the week or by the month) and who does not want to rent it domicile, you have to pay social security contributions if your annual revenues are greater than €23,000.

Revenues 2023

Taxation depends on the type of furnished accommodation you rent:

Répondez aux questions successives et les réponses s’afficheront automatiquement

General case

You have to report the income you earned from renting furnished premises as a non-professional furnished rentals agent (NMPA). These are industrial and commercial benefits (BICs).

You're considered non-professional renter if at least one of them the following 2 conditions are met:

  • The annual revenue from this activity for all members of your tax shelter are less than €23,000
  • Revenues (rents for furniture) are less than the total amount of other income from your tax household (wages, other BIC: titleContent,...).

Occasional rental of a room from your home

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

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

  • You rent one or more rooms of your main dwelling to people passing through
  • The revenue collected does not exceed €760 VAT per year

Usual rental of a room from your home

Income from ordinary furnished rentals is taxable in the BIC category.

However, you do not have to report income from renting (or subleasing) part of your principal residence. The scheme is open until 15 July 2024.

The rented room(s) must be the tenant's primary residence. This can 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 meter of living space, excluding loads):

  • €199 in Île-de-France
  • €147 in other regions

Example :

For a room of 10 m2 in the parisian region, the rent you receive is exempt if it is less than €1,990 for one year. Let a maximum of €165 per month.

Depending on the rental income obtained, you can choose between a plan micro-BIC and the applicable tax system automatically referred to as actual profit.

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

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General case

Rental income not exceeding € 77 700

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

Micro-BIC Diet

If your annual revenue does not exceed €77,700, the scheme micro-BIC (micro-company) is applicable.

The taxable profit shall be equal to the revenue less a flat-rate reduction for expenditure on 50%. Expenses cannot be deducted.

Please note

if your revenues are less than €305You will not pay any taxes.

So-called real profit scheme

If your annual revenue does not exceed €77,700, you can voluntarily choose the so-called actual profit.

The 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.

Who shall I contact

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

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

In practice, you can deduct from the rents of your furnished rentals certain charges that you have actually borne in the interest of your business. You must be able to justify it.

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

If you're seeing a deficit (more expenses than rents), you can deduct it from your furnished rental income non-professional in the same year and the following 10 years.

You can deduct the deficit from your total income only if you are a commercial renter.

Rental income over €77,700

If your annual revenue is more than €77,700, the so-called actual profit (which may be the simplified actual procedure or the normal actual procedure) shall apply.

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

In practice, you can deduct from the rents of your furnished rentals certain charges that you have actually borne in the interest of your business. You must be able to justify it.

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

If you're seeing a deficit (more expenses than rents), you can deduct it from your furnished rental income non-professional in the same year and the following 10 years.

You can deduct the deficit from your total income only if you are a commercial renter.

FYI  

If it's 1re or 2e year your annual revenues exceed €77,700, you can benefit from the scheme micro-BIC one more year. The taxable profit shall be equal to the revenue less a flat-rate reduction for expenditure on 50%. Expenses cannot be deducted.

Bed & Breakfast and furnished tourist classified

Rental income not exceeding € 188 700
Micro-BIC Diet

If you rent a furnished apartment or a bed and breakfast, and your annual revenue does not exceed €188,700, the scheme micro-BIC (micro-company) is applicable.

The taxable profit shall be equal to the revenue less a flat-rate reduction for expenditure on 71%. Expenses cannot be deducted.

If your recipes are less than €305You will not pay any taxes.

The rental of a country cottage no longer qualifies for the scheme micro-BIC.

So-called real profit scheme

If you rent a furnished apartment or a bed and breakfast and your annual revenue does not exceed €188,700, you can voluntarily choose the so-called actual profit.

The 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.

Who shall I contact

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

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

In practice, you can deduct from the rents of your furnished rentals certain charges that you have actually borne in the interest of your business. You must be able to justify it.

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

If you're seeing a deficit (more expenses than rents), you can deduct it from your furnished rental income non-professional in the same year and the following 10 years.

You can deduct the deficit from your total income only if you are a commercial renter.

Rental income exceeding €188,700

If you rent a furnished apartment or a bed and breakfast and your annual revenue exceeds €188,700, the so-called actual profit applies.

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

In practice, you can deduct from the rents of your furnished rentals certain charges that you have actually borne in the interest of your business. You must be able to justify it.

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

If you're seeing a deficit (more expenses than rents), you can deduct it from your furnished rental income non-professional in the same year and the following 10 years.

You can deduct the deficit from your total income only if you are a commercial renter.

FYI  

If it's 1re or 2e If you exceed this limit, you can benefit from this plan for an additional year. The taxable profit shall be equal to the revenue less a flat-rate reduction for expenditure on 71%. Expenses cannot be deducted.

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

Consult the company Tax Office (SIE) of the location where the rented accommodation is located to find out whether or not you will have to pay this tax.

Who shall I contact

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

Who can help me?

Find who can answer your questions in your region

  • For general information

    Tax Information Service

    By telephone:

    0809 401 401

    Monday to Friday from 8:30 am to 7 pm, excluding public holidays.

    Free service + call price

  • To contact the local service managing your folder

    Department in charge of taxes (treasury, tax department...)

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