Rental Income Tax in France: Rules, Rates, Regimes Explained

If you own a property in France and rent it out—whether on a long-term or short-term basis, furnished or unfurnished—the rental income must be declared and is subject to French taxation.

The French tax authorities classify these revenues according to several criteria:

Type of rental (long-term, short-term, furnished, or unfurnished),
Tax residency of the owner (resident or non-resident),
Chosen taxation regime.

Each situation carries specific reporting requirements and a tax treatment tailored to the way the property is operated.

Long-Term Unfurnished Rentals (Location Nue)

A long-term unfurnished rental is typically concluded for a three-year term, with automatic renewal at the end of the contract. The landlord can only terminate the lease for a legal reason and must notify the tenant at least six months in advance.

Authorized reasons include:

Sale of the property,
Reclaiming the property for personal use by the owner or a family member,
Serious breaches by the tenant.

The tenant, on the other hand, may terminate the lease at any time, provided they respect a three-month notice period (reduced to one month in cases specified by the ALUR law).

Income from long-term unfurnished rentals falls under the Revenus Fonciers (rental income) category. Two taxation regimes are available:

Micro-Foncier (simplified regime),
Régime Réel (based on actual expenses and charges).

Taxation of Unfurnished Rentals

Micro-Foncier Regime

This regime applies automatically when the annual gross rental income from unfurnished properties does not exceed €15,000 for the entire household.
It provides a flat 30 % allowance on declared income. In practice, tax is calculated only on 70 % of the rent received, with no deduction for actual expenses.
Income must be declared on Form 2042, box 4BE.

Régime Réel (Actual Expenses Regime)

This regime applies when rental income exceeds €15,000 or at the landlord’s option.
It allows deduction of actual expenses, such as: mortgage interest, maintenance and repair costs, insurance, property taxes, and co-ownership charges.
Requires submission of the complementary Form 2044.

Furnished Rentals

Furnished rentals refer to properties that are fully ready for occupancy. This type of rental is particularly popular with students, young families, and tourists, including for short-term or seasonal rentals.

The property must be equipped with mandatory furniture and appliances, including:

A bed with mattress and bedding,
Means to darken the bedroom (blinds, curtains, or shutters),
A fully equipped kitchen,
A table and chairs,
Closets and storage space,
Adequate lighting,
Cleaning equipment.

In France, there are three types of furnished rentals, each with its own tax threshold, allowance, and reporting requirements.

Income generated from furnished rentals falls under the BIC (Bénéfices Industriels et Commerciaux) category.

Classical Furnished Rentals

Type of contract: furnished residential lease

This type of rental is mainly used when the property is rented as the tenant’s primary residence:

Minimum lease term: 1 year (or 9 months for students),
Automatic renewal: if no notice is given, the lease is automatically renewed for an additional year,
Tenants benefit from strong legal protection under the Law of 6 July 1989.

Note: A furnished residential lease can also apply to a secondary residence. In this case:

The lease is governed by the Civil Code, not by the 1989 law,
Duration, conditions, and renewal are freely agreed between the parties,
Automatic renewal is not mandatory and only applies if explicitly stated in the contract.

Taxation of Classical Furnished Rentals

Micro-BIC: applies to rental income up to €77,700 per year.
Flat-rate allowance: 50 % of the income. Tax is therefore calculated on only half of the rent received.
Option for the régime réel: the landlord can choose the régime réel, allowing deduction of actual expenses.
Declaration: must be made using Form 2042-C PRO.

Seasonal Furnished Rental (Non-Classified)

Contract type: seasonal rental agreement

Rental period: from 1 to 90 consecutive days,
No automatic renewal,
The property does not constitute the tenant’s primary residence,
The terms of the contract are freely defined between the parties.

This type of rental is intended for short-term, seasonal stays, often booked through platforms such as Airbnb, Booking.com, or via real estate agencies. It is particularly suitable for tourists and holidaymakers, both in summer and winter.

Taxation of Non-Classified Seasonal Furnished Rentals

Annual income up to €15,000: a 30 % flat-rate allowance applies, meaning tax is calculated on 70 % of the rent received.
Above €15,000: the régime réel becomes mandatory.
Declaration: must be filed using Form 2042-C PRO.
Under the régime réel, landlords must maintain proper bookkeeping of income and expenses (an Excel table and supporting invoices are sufficient). The fiscal documents (liasse fiscale) must be attached to the tax declaration and may be completed by the owner, the agency, an online service, or a certified accountant.

Classified Tourist Furnished Rental (1 to 5 Stars)

Contract type: seasonal rental agreement

Rental duration: from 1 to 90 consecutive days,
No automatic renewal,
The accommodation is not considered the tenant’s primary residence,
Intended for short-term tourist stays.

The property has obtained an official classification (1 to 5 stars) from an accredited organisation. This certification increases guest confidence and significantly enhances visibility on platforms such as Airbnb and Booking.com.

Key advantages:

Enhanced attractiveness and credibility of the property,
Reduced tourist tax rate,
The most advantageous tax allowance among all types of seasonal rentals.

Taxation of Classified Tourist Rentals

Annual income up to €188,700: eligible for the micro-BIC regime with a 71 % flat-rate allowance, meaning income tax is calculated on only 29 % of rental income.
Owners may choose the régime réel when actual expenses (depreciation, renovation costs, loan interest, etc.) exceed the allowance.
Declaration: must be filed using Form 2042-C PRO.
Under the régime réel, landlords must maintain a clear record of income and expenses (a simple Excel table and invoices are sufficient). The liasse fiscale must be attached to the tax return and may be completed by the owner, by a real estate agency, through an online service, or by a certified accountant.

Deductible Expenses Under the Régime Réel

Under the régime réel, the owner may deduct all actual costs and expenses related to the rental property from their taxable rental income, including:

Depreciation of the building, furniture, and equipment,
Repair and maintenance works,
Loan interest,
Insurance policies (home insurance, unpaid rent insurance, etc.),
Co-ownership charges and public utility costs,
Management fees and real estate agency commissions,
Platform commissions (Airbnb, Booking, etc.) and agency service fees,
Property tax (taxe foncière),
Advertising and administrative expenses,
Transport costs, when necessary for the management of the property.

Payment of Tax for Residents and Non-Residents in France

French Tax Residents

Rental income is added to all other taxable income and taxed according to the progressive income tax scale (from 11 % to 45 %), plus social contributions.
It must be declared using Form 2042 and the relevant annexes.

Non-Residents

Taxed only on income earned from French sources.
Minimum income tax rate: 20 %.
If annual income exceeds approximately €27,519 (amount adjusted each year), the tax rate increases to 30 %.

Social Contributions (Prélèvements sociaux)

17.2 % in most cases,
7.5 % if the non-resident is covered by an EU/EEA social security system (upon presentation of an S1 certificate).

The taxable base depends on the chosen tax regime: micro-foncier, régime réel, micro-BIC, or régime réel BIC.

Declarations and Administrative Procedures

Unfurnished rentals (micro-foncier): declared on Form 2042, box 4BE.
Unfurnished rentals (régime réel): declared using Form 2044.
Furnished rentals (micro-BIC): declared on Form 2042-C PRO.
Furnished rentals (régime réel): requires full bookkeeping and the preparation of a liasse fiscale (tax accounting package).
Platforms such as Airbnb and Booking automatically report income to the French tax authorities, making accurate tracking of revenue and expenses essential.

Calculation Examples

Example 1 – French Resident, Unfurnished Rental (Location Nue)

Rental income: € 14,000
Tax regime: micro-foncier
Allowance: 30 % → taxable base = € 9,800
Hypothetical income tax rate: 20 % → income tax ≈ € 1,960
Social contributions (paid by resident): 17.2 % on the taxable base of € 9,800 → ≈ € 1,686

The exact amount depends on the taxpayer’s family situation and other income.

Example 2 – Non-Resident, Unfurnished Rental (Location Nue)

Rental income: € 12,000
Tax regime: micro-foncier
Allowance: 30 % → taxable base = € 8,400
Applicable income tax rate for non-residents: 20 % → income tax ≈ € 1,680
Social contributions (paid by non-resident):
Standard rate 17.2 % → ≈ € 1,445
If the non-resident is an EU/EEA citizen with an S1 certificate → reduced rate of 7.5 %

Example 3 – Non-Resident, Classical Furnished Rental (Long-Term)

Rental income: € 20,000
Tax regime: micro-BIC (income < € 77,700)
Allowance: 50 % → taxable base = € 10,000
Applicable income tax rate for non-residents: 20 % → income tax = € 2,000
Social contributions (non-resident):
Standard rate: 17.2 % × € 10,000 = € 1,720
If the non-resident is an EU/EEA citizen with an S1 certificate → 7.5 % × € 10,000 = € 750

Example 4 – Non-Resident, Non-Classified Tourist Rental

Rental income: € 18,000
Micro-BIC 2025 threshold: € 15,000
Since the income exceeds the threshold, the régime réel applies.

Under the régime réel:
Assume expenses of € 6,000 → taxable base = € 18,000 – € 6,000 = € 12,000
Applicable income tax rate for non-residents: 20 % → income tax = € 2,400
Social contributions (non-resident):
Standard rate 17.2 % × € 12,000 = € 2,064
If the non-resident is an EU/EEA citizen with an S1 certificate → 7.5 % × € 12,000 = € 900

Practical Tips

Stay up to date with tax changes: thresholds and rules have been significantly modified since 2025.
Régime réel can be advantageous: if your expenses are substantial (depreciation, repairs, mortgage), this regime is often more beneficial.
Maintain accurate records: keep detailed tracking of income and expenses (e.g., Excel) along with all invoices, contracts, reports, and property-related documents.
Non-residents: consider the fixed income tax rates (20–30 %) and social contributions (17.2 % or 7.5 % for EU/EEA residents with an S1 certificate).
Seasonal rentals: some municipalities require registration at the town hall, a registration number, and compliance with local rules (e.g., a 120-day limit for primary residences).

Online platforms: income automatically reported by Airbnb, Booking, etc., must match your own records.
Classified tourist rentals: the classification is valid for 5 years and must be renewed thereafter.
Régime réel: the liasse fiscale (tax accounting package) must be attached to the tax return and can be prepared by the owner, an agency, or an online service.

This article is provided for informational purposes only. The agency does not provide personalized tax calculations for individuals, except for clients of Property Service Azur.