Tax on short-term rentals in France

Short-term rental taxation has a direct bearing on the net return of an exceptional property. The choice between the micro-BIC (flat-rate allowance regime) and the actual-expenses regime, the rating of the property, non-professional or professional furnished landlord status, para-hotel VAT, the tourist tax, the CFE business property contribution and the IFI wealth tax all add up, and weigh differently depending on whether you live in France or abroad. The guides in this section explain each mechanism on the basis of the rules in force, so that you can speak on equal terms with your accountant and then entrust the management of your villa, chalet or apartment with full knowledge of the facts.

Short-term rental taxation: micro-BIC or actual-expenses regime

Income from a meublé de tourisme (furnished tourist let) falls under industrial and commercial profits (BIC), not property income: this is the starting point of all short-term rental taxation in France. Two regimes coexist. The micro-BIC applies a flat-rate allowance to receipts ; the régime réel (actual-expenses regime) taxes actual profit, after expenses and depreciation. Since the law of 19 November 2024, known as the loi Le Meur, the gap between rated and unrated properties has widened considerably, which makes the choice of tax regime more strategic than before. For a high-end property, with high upkeep and furnishing costs, both regimes deserve to be compared again every year. The rules set out here are general information, up to date as of October 2026, to be confirmed with a chartered accountant or a tax lawyer.

The micro-BIC and its two ceilings

For 2026 income, a rated furnished tourist let benefits from a 50% allowance up to €83,600 of receipts, compared with €77,700 for 2025 income (service-public.fr). An unrated property now receives only a 30% flat-rate allowance, capped at €15,000 of receipts, for both 2025 and 2026 income. 2024 income still benefited from 71% up to €188,700 for rated properties (impots.gouv LMNP FAQ, March 2026). The ceiling applies to all of the household’s furnished lettings taken together, not property by property. Undivided co-ownership (indivision) is excluded from the micro-BIC, and a rural gîte only obtains the advantages of rated properties if it is itself rated. Given the rates charged at the top end of the market, the €15,000 ceiling can be reached within a few weeks of letting.

The actual-expenses regime and depreciation

Under the actual-expenses regime, you deduct your real costs: works, loan interest, insurance, property tax, management fees including the concierge commission, and above all the depreciation of the property and its furniture (impots.gouv FAQ). The result is declared on form 2031, usually prepared by a chartered accountant. This regime is compulsory above the micro-BIC ceilings and optional below them. For a prestige residence, depreciation often reduces taxable profit sharply for several years. This lever is at the heart of the debate: the 2027 finance bill plans to cap it for furnished tourist lets, and the National Assembly’s finance committee voted on 8 October 2026 to abolish it for properties acquired from 1 January 2027. Nothing has been adopted to date.

Switching from one regime to the other

Moving from the micro-BIC to the actual-expenses regime is not automatic the first time the ceiling is exceeded: the tax authorities only switch you over after two consecutive years of receipts above the ceiling (impots.gouv FAQ). Conversely, the actual-expenses option remains open below the threshold, which appeals to owners with heavy costs or who have just bought and furnished their property. Rating also changes the equation: an unrated property whose receipts consistently exceed €15,000 leaves the micro-BIC, whereas a rated property stays within it up to €83,600. Before deciding, simulate taxable income under each regime over two or three years, factoring in seasonality, planned works and management fees. Detailed reporting from a high-end concierge service provides the basis for this simulation.

Furnished tourist let taxes: rating, LMNP or LMP status

Beyond the regime, two decisions shape the taxes on a furnished tourist let: whether or not to apply for furnished tourist accommodation rating, and whether you are a loueur en meublé non professionnel (non-professional furnished landlord, LMNP) or a loueur en meublé professionnel (professional furnished landlord, LMP). The first is voluntary and entirely at your initiative; the second follows mechanically from your receipts and your household income. Their effects combine: applicable allowance, treatment of losses, capital gains on resale, social contributions, and even liability to the IFI. At the top end of the market, where the receipts from a single property can exceed the legal thresholds, a threshold may be crossed without having been anticipated. Reviewing the position every year, before filing your return, avoids unpleasant surprises.

Rating, the first tax lever

Rating, from one to five stars, is a voluntary process: a body accredited by Cofrac or otherwise approved inspects the property and assesses it against a framework of 133 criteria (equipment, services, accessibility, sustainability), for a period of five years (Atout France). Its tax benefit is direct: under the micro-BIC, the allowance rises from 30% to 50% and the ceiling from €15,000 to €83,600 for 2026 income. It also allows a fixed tourist tax rate per star to apply, instead of a percentage of the nightly price. Its cost remains modest: by way of example, Saint-Tropez Tourisme charges from €190 including VAT under 50 m² to €450 including VAT above 200 m². The framework also serves as a checklist to make sure no expected amenity is missing.

LMNP or LMP: two cumulative criteria

You are a professional furnished landlord if two conditions are met: annual receipts above €23,000 including VAT, and higher than the household’s other professional income, meaning worldwide income from 2026 income onwards (impots.gouv FAQ). Otherwise, you remain a non-professional furnished landlord, as would be the case for a company director whose earned income exceeds the rental receipts. It is not a matter of choice: the status applies as soon as the thresholds are crossed. LMP status brings advantages, including the offsetting of losses against overall income, but also social security consequences to review with your adviser. In all cases, the activity must be registered with the INPI single business portal within fifteen days of actually starting, a formality that provides a SIRET number.

Losses, capital gains and the add-back of depreciation

Under LMNP, losses can only be offset against furnished letting income of the following ten years; under LMP, they are offset against overall income (impots.gouv FAQ). Resale has also changed: for disposals made since 15 February 2025 (2025 finance law), depreciation deducted under the actual-expenses regime reduces the acquisition price used to calculate the capital gain, which increases the tax due. A ministerial answer published in the Official Journal of 24 March 2026 confirms that depreciation prior to 2025 is also caught. Only certain serviced residences (students, the elderly, care homes) escape this add-back. For a family asset intended to be sold or passed on, this rule must weigh on the choice between the micro-BIC and the actual-expenses regime from the outset, rather than be discovered at the notaire (notary).

Short-term rental taxation: concierge fees, VAT, tourist tax and CFE

Management fees are an integral part of the taxation of a furnished property entrusted to a professional. A luxury concierge commission commonly ranges from 15% to 30% of rental income (rates published by industry players, 2026), often quoted excluding VAT, with 20% VAT on top. Under the actual-expenses regime, it is deductible, like recharged cleaning, linen or maintenance costs; under the micro-BIC, it is deemed covered by the flat-rate allowance. Also check the basis of calculation, gross rent or rent net of platform fees. Conciergerie.luxe puts you in touch, free of charge, with a high-end concierge service, which carries out the services according to its own offer and the contract signed directly with you: it is that contract which sets the commission and any additional fees.

Para-hotel VAT: the four-service test

Furnished letting is in principle exempt from VAT. It becomes subject to it, at the 10% rate, when the landlord regularly provides at least three of the following four services: breakfast, regular cleaning of the premises, supply of household linen and reception of guests, even if not personalised (art. 261 D 4° of the French Tax Code, CGI). This threshold directly concerns the high end, whose offer often includes cleaning during the stay, hotel-quality linen and a personalised welcome. Para-hotel VAT works both ways: VAT charged to guests, but VAT recoverable on works, equipment and management fees. The VAT small-business exemption, whose 2025 reform was repealed, should be examined case by case with a chartered accountant, according to the level of service sought.

Tourist tax: collected for the municipality

Payable by the guest, the taxe de séjour (tourist tax) is collected by the host, or by the platform when it takes the payment, then paid over to the municipality or intercommunal authority, on an actual or flat-rate basis according to the local resolution (LégiFiscal, August 2026). For an unrated property, it amounts to 1% to 5% of the price per night per person excluding tax, subject to a ceiling; for a rated property, a fixed rate per star. Additional surcharges apply on top: 10% for the département, and regional increases in Île-de-France and PACA (34%). It is not income for the landlord and is not part of taxable receipts. When you let directly, collecting it falls to you, or to a manager holding the carte G (property management licence), the only party authorised to handle these funds on your behalf.

CFE: the furnished landlord’s business property contribution

As a commercial activity, furnished letting makes the landlord liable for the cotisation foncière des entreprises (CFE, business property contribution), including under LMNP status (impots.gouv). An exemption applies if annual receipts do not exceed €5,000 (art. 1647 D CGI), a threshold a high-end property quickly crosses. Letting your own personal home as a furnished tourist let is exempt, unless the municipality has resolved otherwise. Calculated on the rental value of the property and the locally voted rate, the CFE varies widely from one municipality to another. It is declared in the year the activity starts, then paid every year by 15 December at the latest via the online professional account. Under the actual-expenses regime, it is deductible, like property tax.

LMNP, IFI and non-residents: the wealth side of furnished tourist let taxation

The taxation of a furnished tourist let does not stop at income tax. Three further subjects arise for an owner of exceptional properties: the impôt sur la fortune immobilière (real estate wealth tax, IFI), the position of owners who live outside France, and the transparency imposed on platforms, which report the income they pay out to the tax authorities. All three require accurate and mutually consistent returns, as the authorities hold cross-checked data. They also bear on the passing on of wealth, since the status adopted during the letting phase affects the taxable value and the tax cost of a sale. A rigorous annual statement of receipts and expenses makes the work of your accountant and your notary easier.

IFI: the furnished tourist let as taxable wealth

The IFI applies to households whose net taxable property assets exceed €1.3 million on 1 January, with a progressive scale from 0.5% to 1.5%; the 2026 finance law changed neither this threshold nor this scale. A furnished tourist let under LMNP status is included in the tax base at its market value, like any property held privately. LMP status may give entitlement to an exemption for business assets, under strict and cumulative conditions (art. 975 CGI), relating in particular to the weight of rental income in the household’s income. Furniture remains outside the scope of the IFI, and debts relating to the property, such as the acquisition loan, are deductible within the legal limits. With several let residences, the annual valuation of the properties deserves particular care.

Non-resident owners: taxation in France

An owner whose tax domicile is outside France remains taxable in France on income from a furnished property located in France, subject to tax treaties. The progressive scale applies with a minimum tax rate of 20% up to €29,579 of net taxable income and 30% above, for 2025 income (impots.gouv, non-residents factsheet, March 2026). Opting for the average rate, calculated on the household’s worldwide income, sets this minimum aside when it is more favourable, provided that this income is declared and evidenced. Social charges are reduced for people covered by the social security scheme of another European Economic Area state or Switzerland. Registration, tax return, tourist tax and CFE remain due as for a resident: structured on-site management then becomes invaluable.

• Reconcile each platform’s annual statement with your own accounts.
• Have the property rated before choosing the micro-BIC.
• Require reporting that separates receipts, tourist tax and recharged costs.
• Check the LMP, CFE and para-hotel VAT thresholds every year.
• Register the activity with the INPI within fifteen days.

Platforms: your income reported to the tax authorities

For transactions carried out since 1 January 2023, platforms such as Airbnb, Booking or Abritel report the income received by their users to the tax authorities every year, under the European directive known as DAC7 (art. 1649 ter A to 1649 ter E CGI, impots.gouv). This data is exchanged between European tax authorities by the last day of February of the following year at the latest, and the platform sends the landlord an annual statement of their transactions. The authorities therefore know your receipts even before you file: any discrepancy may trigger a request for explanation. These amounts ignore your expenses and your concierge’s commission: establishing taxable profit is up to you. Municipalities also receive activity data through the API Meublés platform.

Frequently asked questions about short-term rental taxation