Taxation of furnished rental income

Many of you have been asking us questions about the legislation regarding furnished rentals. Indeed, many points differ from standard unfurnished rentals. That is why, in partnership with jedeclaremonmeuble.com, your Airbnb concierge service has decided to explain how taxation works in a simple and clear way.

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Explanation of tax regimes for furnished rentals

Furnished rental, even when non-professional (LMNP), is a commercial activity that is declared differently from standard unfurnished rental income. The resulting profits are considered Industrial and Commercial Profits (BIC) and can be declared in two different ways:
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- Either under the micro-BIC regime: this regime is very simple to set up. For standard furnished rentals (long-term), it allows you to benefit from a flat-rate deduction of 50% of your gross income (including charges), with a revenue ceiling of €77,700.

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Attention - Major 2025 changes for tourist rentals: Since January 1, 2025, following the adoption of the Le Meur Law (November 2024), the rules have been tightened for short-term furnished rentals (such as Airbnb, Abritel, etc.):

• Non-classified tourist furnished rentals: the deduction has been reduced to 30% (compared to 50% previously) and the revenue ceiling lowered to €15,000 (compared to €77,700 previously)
• Classified tourist furnished rentals and bed and breakfasts: the deduction has been reduced to 50% (compared to 71% previously) and the revenue ceiling lowered to €77,700 (compared to €188,700 previously)

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These changes aim to better regulate short-term rentals and encourage owners to opt for the real regime, which is more transparent and allows for better tax traceability.
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- Or under the simplified real regime : its declaration and accounting formalities are more complex, but it allows you to deduct your expenses and depreciate your property and furniture. This regime is much more advantageous in most cases.

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Understanding the Le Meur Law and its impact on your taxes

The Le Meur Law, adopted in November 2024 and effective as of January 1, 2025, marks a turning point in the taxation of furnished tourist rentals. This reform, often referred to as the "anti-Airbnb law," aims to regulate the short-term rental market, particularly in tourist areas and large metropolitan cities.

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The objectives of this reform:

• Combat housing shortages in high-demand areas by limiting tax incentives for tourist rentals
• Promote tax transparency by encouraging a shift to the real regime
• Restore power to local authorities to regulate short-term rentals

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In practical terms, what does this change for you?

If you rent your property as a standard rental (minimum 12-month lease), nothing changes: you retain the 50% deduction under the micro-BIC regime up to €77,700 in revenue.

If you rent as a seasonal or short-term rental, you are directly affected:

• Switching to the real regime becomes virtually mandatory for owners exceeding €15,000 in annual revenue from non-classified furnished rentals
• The tax advantage of the micro-BIC becomes much less attractive with only a 30% deduction for non-classified furnished rentals
• Classifying your tourist furnished rental remains worthwhile but now offers fewer tax benefits than before

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Our advice: If you rent on a short-term basis, the real regime is now the most advantageous solution in the vast majority of cases, allowing you to deduct your actual expenses and depreciate your property.

Choosing your tax regime

Most often, furnished rental owners opt for the micro-BIC regime, out of simplicity or a lack of knowledge about the simplified real regime and its procedures. But did you know that in more than 85% of cases, the real regime allows for significant tax savings?
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2025 Comparison Table: Micro-BIC vs. Real Tax Regime

Here is a summary of the thresholds and allowances applicable in 2025 based on the type of rental:

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A concrete example to help you understand:

Situation 1 - Long-term rental: You receive €20,000 in annual rent for a standard furnished rental.

• Micro-BIC: taxable base = €10,000 (after a 50% allowance) Real tax regime: if your expenses + depreciation = €12,000, your taxable income = €8,000 (or even €0 if depreciation is significant) ➡️ The real tax regime is more advantageous

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Situation 2 - Non-classified furnished tourist accommodation: You receive €18,000 in annual rent via Airbnb for a non-classified apartment.

• Micro-BIC: IMPOSSIBLE (ceiling exceeded at €15,000) → mandatory switch to the real tax regime Real tax regime: you deduct your actual expenses (concierge services, cleaning, utilities, property tax, depreciation) and optimize your taxes

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Situation 3 - Classified furnished tourist accommodation: You receive €35,000 in annual rent for a studio classified as furnished tourist accommodation.

• Micro-BIC: taxable base = €17,500 (after a 50% allowance) Real tax regime: with concierge, cleaning, and depreciation expenses, your taxable income can be significantly reduced, or even zero ➡️ The real tax regime is far more advantageous

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Why is the real tax regime becoming essential in 2025?

With the 2025 reform, the real tax regime stands out as the optimal choice for the majority of furnished rental owners, especially for short-term rentals. Here is why:

• Deduction of actual expenses: unlike the flat-rate allowance of the Micro-BIC (which is now only 30% for non-classified furnished rentals), the real tax regime allows you to deduct all your actual expenses: Welkeys concierge services, cleaning fees, co-ownership charges, property tax, loan interest, insurance, etc. Depreciation of property and furniture: the real tax regime offers a major tax advantage through depreciation. You can depreciate your property as well as the furniture, which allows you to drastically reduce your taxable income, or even reach a zero balance for several years. Maximum tax optimization: in more than 85% of cases, our clients achieve significant tax savings by opting for the real tax regime. On average, our users save more than €10,000 in taxes over 5 years thanks to this regime.

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Adaptation to new rules: faced with the reduction of Micro-BIC benefits for seasonal rentals, the real tax regime is becoming the only truly profitable option to optimize your furnished tourist rental business.

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Here is a non-exhaustive list of deductible expenses under the real tax regime:

• Acquisition costs: notary fees, real estate agency fees, brokerage fees Rental management fees: Welkeys fees (concierge), management fees, platform commissions (Airbnb, Abritel) Operating expenses: co-ownership fees, property tax, insurance Financial costs: loan interest, bank processing fees Maintenance and repairs: maintenance work, cleaning fees, laundry Short-term rental specific charges: supplies for tenants (welcome kits, consumables), Wi-Fi, subscriptions Depreciation: depreciation of the property, furniture, equipment, and renovations

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Good to know: For short-term rentals, deductible expenses are generally higher (concierge, frequent cleaning, supplies, platform commissions), which makes the real tax regime even more advantageous compared to the Micro-BIC and its flat-rate allowance limited to 30%.‍

To help you choose the most advantageous tax setup for your situation, we provide a free simulator that allows you to compare your tax amount for each of the two regimes in 2 minutes.

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Presentation of support services

If the real tax regime is also the most beneficial for you, you will need to prepare and electronically file a tax return (Cerfa forms 2031-2033) with the tax authorities every year.

2025 deadlines to remember:

• May 20, 2025: Deadline for electronic filing of the tax return (form 2031) for the actual tax regime
• May 5, 2025: Deadline if you are filing a paper return (an increasingly rare option)
• May 22 to June 5, 2025: Deadlines for the income tax return (form 2042-C-PRO) depending on your department

Electronic filing has been mandatory since 2015 for all LMNP (non-professional furnished rental) owners under the actual tax regime, ensuring fast and secure processing of your return.

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To help with this, jedeclaremonmeuble.com offers two support packages:
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- The Full-Service Package - For complete, hands-off support

Our accountant, specializing in furnished rentals, prepares your tax return and assists you with all LMNP requirements.

2025 Price: €599 incl. tax for the first property + €120 incl. tax for each additional property

Actual cost after tax deduction: Approximately €316 incl. tax for the first property* (these service fees are fully deductible from your rental income)

Services included:

• Entry and classification of your income and expenses by the accountant
• Calculation of depreciation using the component method
• Preparation, review, and certification of your tax return
• Secure electronic filing with tax authorities
• Personalized support and tax advice

To sign up, simply contact us by email or phone.

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- The Essential Package - For more autonomy

We provide you with intuitive software specifically developed for reporting rental income under the simplified actual tax regime. You enter your data, and the software automatically generates your tax return, ready for electronic filing.

2025 Price: €289 incl. tax regardless of the number of properties

Actual cost after tax deduction: Approximately €153 incl. tax* (these software fees are fully deductible from your rental income)

Services included:

• Unlimited access to the online software
• Automatic generation of your tax return
• Secure electronic filing with tax authorities
• Technical support via phone and email
• Automatic consistency checks (over 80 verification points)

*Remaining cost after tax deduction for a taxpayer with a marginal tax rate (TMI) of 30% and social contributions of 17.2%. The actual cost varies based on your TMI.

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Frequently asked questions about LMNP taxation in 2025

Q: I rent out my apartment on Airbnb a few weeks a year. Does the Le Meur law apply to me?
A: Yes, if you rent on a short-term basis (seasonal rental), you are affected by the reform. If your revenue exceeds €15,000 for an unclassified furnished property, switching to the actual tax regime becomes mandatory. Even below this threshold, the actual regime is generally more advantageous, as the micro-BIC allowance is limited to 30%.

Q: Can I combine long-term and short-term rentals?
A: Yes, that is entirely possible. You will need to report all your rental income, distinguishing between revenue from standard rentals and revenue from tourist rentals. The actual tax regime will greatly simplify this management.

Q: How do I know if my rental property needs to be "classified"?
A: Classifying a vacation rental (from 1 to 5 stars) is a voluntary process handled by an accredited organization. Although the tax benefit decreased in 2025 (a 50% allowance instead of 71%), classification offers other advantages: better visibility, increased tenant trust, and in some municipalities, an exemption from the CFE (local business tax).

Q: Are concierge services like Welkeys tax-deductible?
A: Yes, absolutely! Concierge fees are fully deductible under the actual expense regime (régime réel). This is one of the most significant expenses for short-term rentals and a major argument for choosing the actual regime over the micro-BIC system.

Q: What happens if I exceed the income thresholds during the year?A: If you exceed the micro-BIC thresholds (€15,000 for non-classified vacation rentals, €77,700 for others), you are granted a two-year grace period before the switch to the actual regime becomes mandatory. However, you can (and it is recommended) voluntarily opt for the actual regime as early as the first year you exceed the limit.