Short-term rental LMNP simulator: discover how to choose the best tax scheme

You entrust us with your property, and we support you at every step of renting out your furnished tourist accommodation. But one question often comes up: how is short-term rental income taxed?

With our short-term rental LMNP simulator, easily discover which tax regime is most beneficial for your situation.

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Which tax regime for a furnished rental?

Income from a furnished rental is considered BIC (industrial and commercial profits) rather than property income (which is reserved for unfurnished rentals).

This income is added to your household's other income on your annual tax return and is subject to the progressive income tax scale as well as 17.2% in social security contributions.

Two tax regimes are possible:

• the micro-BIC regime, and the simplified real LMNP (non-professional furnished lessor) regime.

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The micro-BIC regime

The micro-BIC regime is the easiest to manage. You simply declare the total annual income generated by your short-term rental without having to keep detailed accounts.

The tax authorities then apply a flat-rate deduction intended to cover your expenses (fees, maintenance, furniture, etc.). But be careful: the rules have changed as of 2025.

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New thresholds and deductions as of 2025

Since the Le Meur Law of November 19, 2024, new ceilings and deductions apply to income received starting January 1, 2025.

• For standard furnished rentals (long-term): the threshold remains set at €77,700, with a 50% deduction. For non-classified tourist accommodations, the threshold is now €15,000 (down from €77,700) and the deduction is reduced to 30% (instead of 50%). For classified tourist accommodations and bed and breakfasts, the threshold is reduced to €77,700 (instead of €188,700) with a 50% deduction (down from 71%).

These new rates apply starting this year and significantly change the landscape for non-classified tourist rentals, which are much less tax-advantaged than before.

The taxable amount after the deduction is added to your total income. It could therefore push you into a higher tax bracket. Furthermore, even if you are not liable for income tax, your rental income remains subject to social security contributions.

In short, the micro-BIC remains attractive for its simplicity, but it is becoming less advantageous than before for many landlords.

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The simplified real LMNP regime

The real LMNP regime is attracting more and more investors because it allows you to deduct the actual expenses related to the rental.

This includes:

• maintenance and management fees, property tax, loan interest, insurance, and, most importantly, the depreciation of the property (excluding land).

This ability to depreciate the property allows you to significantly reduce taxable income, or even bring it to zero for several years.
This is what makes the real regime so powerful for rental investors.

Each year, however, you must file a complete tax return detailing your expenses and depreciation, which is why it is beneficial to hire a chartered accountant specializing in LMNP.

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Important 2025 change: Reintegration of depreciation into capital gains

Since the 2025 Finance Act, the depreciation deducted during the rental period is now added back into the capital gains calculation when the property is sold.

In practical terms, if you have depreciated your property by €50,000 over several years, this €50,000 will increase the taxable capital gain at the time of sale.

However, this measure has a limited impact:

• if you hold the property for more than 22 years, you benefit from progressive capital gains tax allowances,
• after 30 years, you are exempt from capital gains tax,
• and serviced residences (student housing, senior living, nursing homes) are exempt from this reintegration.

The real regime therefore remains highly advantageous, because the tax savings achieved during the rental period are very often greater than the additional tax due upon resale.

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New obligations for furnished tourist rentals in 2025

The reforms introduced by the Le Meur Law of November 2024 have also brought several new regulatory obligations for owners of furnished tourist rentals.

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Mandatory registration

All furnished tourist rentals must be registered with the town hall via a national online service, no later than May 20, 2026.
This registration will provide you with a 13-character registration number, which must be displayed on all your listings.

• Fine of €10,000 for failure to register
• Fine of €20,000 for false declaration

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Limitation on rental duration

Municipalities now have the option to reduce the maximum duration for renting primary residences to 90 days per year (instead of 120 days).

• Fine of €15,000 for exceeding the limit

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Energy performance (DPE)

The DPE (Energy Performance Certificate) is now mandatory for furnished tourist rentals located in high-demand areas:

• between 2025 and 2033, the property must reach at least class E,
• starting in 2034, class D will be required.
• Fine of €5,000 if the DPE is not submitted to the town hall.

These new rules aim to regulate the seasonal rental market and promote access to housing in areas with high real estate pressure.

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How do you choose the best tax regime?

To determine which tax scheme is best suited to your situation, the LMNP simulator is an essential tool.

In just a few minutes, you can compare your tax liability under the micro-BIC scheme or the real scheme, using simple data:

• the purchase price of your property,
• the amount of your rent and expenses,
• your loan interest,
• your marginal tax rate (TMI).

The simulator automatically calculates the amount of tax due under each scheme to help you optimize your net rental income.

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Key Takeaways

The micro-BIC scheme remains simple but is becoming less attractive with the new 2025 thresholds.
The LMNP real scheme, while more technical, still allows you to maximize the profitability of your furnished rental, especially in the long term.

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