Do you own a holiday rental property and wonder how your rental income is taxed?
Don’t panic, you are not alone. Between LMNP, LMP, micro-BIC, the real regime, the Le Meur law, holiday lets and furnished tourist accommodation, it is easy to get lost.
MyGuest Conciergerie helps every owner better understand the tax rules and administrative formalities, so that your furnished holiday let stays both profitable and legally compliant.
LMNP or LMP: what is the difference for your furnished rental?
Before talking about tax, you need to distinguish between two tax statuses specific to holiday letting, which determine the tax regime that applies to your rental income, how you are taxed and your accounting obligations.
LMNP (non-professional furnished landlord)
This is the most common status in France, suitable for most owners who let their second home or a furnished property as a holiday rental.
You fall under LMNP status if:
- Your annual rental takings are below €23,000
- Your rental income is lower than your earned income (salaries, pensions, business profits, etc.)
In short, LMNP suits owners who let occasionally, for short periods, without it becoming their main activity.
LMP (professional furnished landlord)
You become an LMP if your takings exceed €23,000 a year and this rental income is higher than your other earned income.
In that case, furnished letting becomes a professional activity registered with the trade and companies register.
Expenses, accounting, tax rules and tax on profits then follow the industrial and commercial profits (BIC) tax regime.
Tax: the tax regimes for holiday lets
Once your status is determined, you need to choose the tax regime under which your rental income will be taxed.
The micro-BIC regime
Micro-BIC applies automatically if your annual takings do not exceed the €77,700 threshold (or €188,700 for classified furnished tourist accommodation).
- You must declare the total amount of rent received in your income tax return, under “industrial and commercial income”.
- The tax authorities automatically apply a flat-rate allowance of 50% for expenses (or 71% for properties classified as furnished tourist accommodation).
Micro-BIC is perfect for small-scale owners, standard holiday lets or anyone who wants simple management without overly complex accounting.
Note that this regime does not allow you to deduct your actual expenses or depreciate the property.
The real regime
If your takings exceed the micro-BIC threshold, or if you opt for it voluntarily, you fall under the real regime, which is more comprehensive but also more advantageous for active owners who want to optimise their tax.
Under the real regime, you can:
- Deduct all your expenses: upkeep of the property, concierge services, home insurance, loan interest, works, accountancy fees, etc.
- Depreciate your property and furniture, which significantly reduces your tax.
- Declare your actual rental income through suitable accounts and an annual balance sheet.
Changes, reforms and new tax rules
Since the November 2024 reform, some provisions have changed:
- The micro-BIC threshold for non-classified holiday lets is now €77,700.
- Classified furnished tourist accommodation still benefits from a 71% allowance, but only in areas without housing pressure.
- The Le Meur law allows municipalities to limit the letting of a main residence to 120 days a year.
MyGuest Conciergerie encourages you to keep a close eye on these tax rules, as they can affect the amount of tax you pay or your threshold for declarable takings.
Note that platforms such as Airbnb and Booking now automatically report your income to the tax authorities.
Which regime should you choose for your situation?
Choosing the right tax regime for your holiday let depends on your annual rental income, the number of furnished properties you operate and your actual expenses.
Here are three typical profiles to help you make the right choice.
Occasional landlord
If your rental takings are below €23,000 a year and furnished letting remains a secondary activity, the micro-BIC regime is the best option.
It offers an automatic 50% allowance (or 71% for classified furnished tourist accommodation), which makes declaring your income simpler without keeping full accounts.
Ideal for private owners who let their second home or a flat for a few weeks a year during the holidays.
Active or multi-property landlord
If your rental income is between €23,000 and €77,700 a year, or if you own several furnished properties, the simplified real regime becomes particularly advantageous.
It lets you deduct all your expenses (loan interest, maintenance, concierge services, works, home insurance, accountancy fees, etc.) and depreciate your property.
The result: your taxable profits are reduced and the tax on your holiday let is more balanced.
It is the preferred regime of committed owners looking to optimise their profitability.
Professional landlord
Above €77,700 in annual takings, or if furnished letting is your main activity, the real regime becomes compulsory and LMP status applies.
This professional landlord status means letting is treated as a genuine business, with full accounts and taxation under industrial and commercial profits (BIC).
Expenses and depreciation can be deducted in full and, in some cases, profits may be partly exempt depending on the amount of takings or how long the business has been running. In practice, the real regime is often the most advantageous for holiday lets with significant expenses (maintenance, works, management).
How do you declare income from an Airbnb rental?
For furnished lets, rental income must be declared every year on form 2042-C PRO, under BIC (industrial and commercial profits).
Here are the steps to follow:
- Check your status (LMNP or LMP) and your tax regime (micro-BIC or real).
- Create your account on impots.gouv.fr if you have not already done so.
- File your annual return before the deadline, set in May or June depending on where you live.
- If you are under the real regime, attach your accounts and balance sheet, often prepared by a chartered accountant.
Remember to keep your invoices, energy performance certificates (DPE), insurance and concierge fees: they are deductible under the real regime.
Get support to ensure compliance and profitability
MyGuest Conciergerie supports its partner owners with all the necessary formalities:
- Optimising rental management according to your tax regime
- Help with declaring rental income
- Introductions to a partner accountant
- Monitoring local regulations in tourist municipalities
- And, of course, full management of your property: upkeep, concierge services, welcoming guests, inventories, etc.
Our mission: to help you generate regular income, comply with the applicable laws and enjoy your property investment with peace of mind.
Contact us to find out more about holiday rental tax.
