Short-term rental tax in France has changed shape: since 2025 income, the gap between a rated and an unrated meublé de tourisme (furnished tourist accommodation) has become decisive, and the choice between micro-BIC and the actual-expenses regime weighs heavily on a villa’s net income. Added to this are para-hotel VAT, the tourist tax, the CFE and, for investors, the clawback of depreciation on resale. This is general information, up to date as of October 2026, to be confirmed with your accountant before any decision.
Short-term rental tax in France: commercial income, not property income
Letting a furnished property to transient guests is a commercial activity for tax purposes: the rent received is taxed as industrial and commercial profits (BIC), not as the property income that applies to unfurnished lettings. This classification governs the whole of holiday rental taxation: the choice between micro-BIC (the simplified flat-rate regime) and the actual-expenses regime, non-professional (LMNP) or professional (LMP) furnished landlord status, possible liability to the CFE (business property tax) and, in some cases, to VAT. It applies whether the dwelling is your main residence let for a few weeks a year or a second home dedicated entirely to letting. Understanding these thresholds before the first booking avoids costly adjustments.
Rated or unrated furnished tourist accommodation: the dividing line
The most structuring distinction in furnished tourist rental taxation in 2026 is the dwelling’s official star rating, from one to five stars. A rated property benefits from a 50% flat-rate allowance under micro-BIC, within a much higher income ceiling, whereas an unrated property is limited to a 30% allowance and €15,000 of annual income (LMNP FAQ, impots.gouv, March 2026). Rating is a voluntary process, carried out by an accredited or approved body, and valid for five years. The gîte rural (rural holiday cottage) is no exception: it only enjoys the advantages of a rated property if it is itself rated as furnished tourist accommodation. This is the first decision to make.
Main residence, second home or investment: one framework
Tax law does not fundamentally distinguish according to how the dwelling is used: a main residence let during your absences, a second home and a flat bought for letting all produce BIC income. The differences lie mainly in the regulations: the résidence principale (main residence) remains limited to 120 days a year of tourist letting, or even 90 days in municipalities that have so decided (law of 19 November 2024, known as the loi Le Meur, Le Meur law), and a second home may be subject to changement d’usage (change of use). For tax purposes, letting your own home as furnished tourist accommodation is in principle exempt from CFE, unless the municipality decides otherwise (impots.gouv). The micro-BIC ceiling, however, is assessed across all the household’s furnished lettings: a main residence let in summer and a buy-to-let flat are added together.
Declaring all income received via platforms
The income to declare covers all sums received for stays, whether from Airbnb, Booking, Abritel or direct bookings. Platforms are subject to reporting and data transmission obligations, and the State has set up a dedicated tool, API Meublés, which passes platform activity data to municipalities (decrees no. 2026-196 and 2026-197 of 19 March 2026). You should therefore assume that the activity is visible and declare every euro received from it. In practice, an annual statement per platform, reconciled with the transfers received, is the safest basis for completing your income tax return or the 2031 tax return under the actual-expenses regime.
Micro-BIC for furnished tourist rentals: 2026 allowances and ceilings
Micro-BIC remains the simplest regime: you declare your gross income, the tax authority applies a flat-rate allowance meant to represent your expenses, and only the balance is taxed at the income tax scale, plus social charges. Since the reform applying to 2025 income, its simplicity comes at a price: the allowance no longer always reflects the real expenses of a luxury property. To benefit from the most favourable terms, a furnished tourist accommodation rating becomes practically a prerequisite. The comparison with the actual-expenses regime must be made with figures in hand, over a full year.
Unrated property: 30% allowance and €15,000 of income
For unrated furnished tourist accommodation, micro-BIC is only available if annual income does not exceed €15,000, with a 30% allowance for 2025 and 2026 income alike (LMNP FAQ, impots.gouv; service-public.fr). By comparison, 2024 income still enjoyed a ceiling of €77,700 and a 50% allowance. In concrete terms, on €15,000 of income, €10,500 remains taxable before social charges. Unrated status is therefore rarely the most relevant set-up for a prestige property intended for regular letting.
Rated property: 50% allowance up to €83,600
Rated furnished tourist accommodation keeps a 50% allowance under micro-BIC, within a limit of €77,700 of income for 2025 and €83,600 for 2026 (service-public.fr, July 2026). For 2024 income, the regime was much more favourable, with a ceiling of €188,700 and a 71% allowance. Rating costs a few hundred euros every five years depending on the body and the floor area, a modest sum given the difference in allowance. It also brings a fixed tourist tax rate per category, easier for your guests to understand.
Exceeding the ceilings and joint ownership: the limits of micro-BIC
Exceeding a ceiling once does not immediately switch you to the actual-expenses regime: you only leave micro-BIC after two consecutive years above the ceiling (LMNP FAQ, impots.gouv). Property held in indivision (joint ownership) is excluded from micro-BIC and falls directly under the actual-expenses regime, a frequent situation in family inheritances. Bed and breakfasts follow a logic close to rated properties, with a 50% allowance and a €77,700 ceiling for 2025 income, their 2026 ceiling not yet having been confirmed. These threshold rules must be anticipated as soon as income approaches the limits.
| Tax point | What to remember in 2026 |
|---|---|
| Micro-BIC, rated property | 50% allowance, ceiling of €77,700 (2025 income) then €83,600 (2026 income) |
| Micro-BIC, unrated property | 30% allowance, ceiling of €15,000 (2025 and 2026 income) |
| Reminder, 2024 income | 71% up to €188,700 (rated), 50% up to €77,700 (unrated) |
| Leaving micro-BIC | After two consecutive years above the ceiling |
| LMP status | Income above €23,000 including VAT and above the household’s other professional income |
| Para-hotel VAT | At least 3 of the 4 services provided regularly, 10% rate |
| CFE | Exemption if income is €5,000 or less |
LMNP for holiday rentals: actual-expenses regime, depreciation and status
The actual-expenses regime means declaring your income and deducting all expenses actually incurred, on the 2031 tax return: it is mandatory above the micro-BIC ceilings and optional below them (LMNP FAQ, impots.gouv). For a property entrusted to an Airbnb concierge, the management commission is among the deductible expenses. Conciergerie.luxe introduces owners free of charge to luxury concierges, the services being provided by the chosen concierge under the contract signed directly with it: its invoices are then supporting documents to keep. For most well-equipped luxury properties, it remains the route that best reflects real profitability.
Deductible expenses of a luxury furnished tourist rental
Under the actual-expenses regime, the list of deductible expenses is broad: maintenance and repair work, loan interest, insurance premiums (non-occupying owner policy or comprehensive cover suited to short-term letting), management fees including the concierge commission, platform fees and accounting fees. Add to these hotel-standard cleaning, professional linen and pool or garden maintenance. Each expense must be backed by an invoice and linked to the letting activity; for a dwelling you occupy part of the year, the split between personal and rental use should be established with your adviser. A concierge’s commission, commonly between 15% and 30% of rental income according to commercial sources (rate cards published by industry players, 2026), weighs directly on taxable profit.
Depreciation and clawback on resale
The main advantage of LMNP under the actual-expenses regime is depreciation: the value of the building, furniture and works can be deducted gradually, which often neutralises tax on the rent for many years. This mechanism was, however, rebalanced by article 84 of the 2025 Finance Act (law of 14 February 2025): for disposals made since 15 February 2025, depreciation deducted reduces the acquisition price used to calculate the capital gain, which is increased accordingly, including for depreciation prior to 2025 (ministerial answer, Official Journal of 24 March 2026). Certain serviced residences (student, senior, care homes) escape this clawback, but not furnished tourist accommodation. The tax saving during ownership must therefore be weighed against the exit taxation.
The 2027 Finance Bill, under discussion and not adopted as at mid-October 2026, provides in its article 7 for a cap on LMNP depreciation for furnished tourist accommodation (1.5% within a limit of €5,000 a year). On 8 October 2026, the National Assembly’s finance committee voted for a more radical version: abolition of depreciation for furnished tourist accommodation acquired from 1 January 2027 and a return to a 71% allowance for bed and breakfasts (Boursedescredits, October 2026). The text may still change in the plenary session.
LMNP or LMP: the €23,000 income threshold
Professional furnished landlord (LMP) status applies when two conditions are met: income above €23,000 including VAT per year and above the household’s other professional income, the latter meaning, from 2026 income onwards, worldwide professional income (LMNP FAQ, impots.gouv). Otherwise, you remain a non-professional furnished landlord. The difference is significant in the event of a loss: under LMNP, it can only be set against furnished letting income over the following ten years, whereas under LMP it can be set against total income. The social security and estate consequences of professional status go beyond the scope of this guide and warrant a personalised review.
Airbnb tax in France: VAT, tourist tax and CFE
Beyond income tax, seasonal letting exposes you to three separate levies. VAT, first, which only concerns lettings that come with para-hotel services. The tourist tax, next, paid by the guest but whose collection is the host’s responsibility when no platform handles it. And finally the CFE, owed by the furnished landlord for their commercial activity, subject to the exemptions provided.
Para-hotel VAT: the three-out-of-four services rule
Furnished letting is in principle exempt from VAT. It becomes liable, at the 10% rate, when the landlord regularly provides at least three of the four services below: breakfast, regular cleaning of the premises, provision of household linen and reception of guests, even if not personalised (art. 261 D 4° of the French General Tax Code). Registration allows VAT on expenses to be recovered, but requires appropriate returns and invoicing; the basic VAT exemption scheme may apply below certain thresholds, whose 2026 amounts are yet to be confirmed. The scope of the services offered should therefore be defined knowingly, with the concierge and your adviser.
Tourist tax: collection, rates and additional taxes
The taxe de séjour (tourist tax) is paid by the guest, collected by the host or by the platform when it takes the payment, then passed on to the municipality or the intermunicipal authority, under an actual or flat-rate system (LégiFiscal, August 2026). For an unrated property, it is calculated proportionally, between 1% and 5% of the pre-tax cost of the night per person, up to a ceiling; a rated property has a fixed rate per star category. Additional taxes come on top: 10% for the département, and in Île-de-France 200% for Île-de-France Mobilités and 15% for the region, bringing the 2026 Paris ceiling to €15.93 per night per person. For direct bookings, collection is your responsibility, or that of the manager who collects on your behalf, which requires them to hold the appropriate professional licence.
CFE and formalities for furnished landlords
The business property tax (CFE) is owed by furnished landlords, their activity being considered commercial (impots.gouv). An exemption applies where annual income does not exceed €5,000 (art. 1647 D of the General Tax Code), and letting your own home as furnished tourist accommodation is exempt, unless the municipality decides otherwise. The start of the activity must also be declared to the INPI one-stop business portal within fifteen days, a formality often forgotten. It comes in addition to declaring the property to the mairie (town hall), still required pending the opening of the national online registration service, announced for the fourth quarter of 2026 (service-public.fr).
Frequently asked questions about short-term rental tax in France
Must income from a main residence let for a few weeks be declared?
Yes, income from letting your main residence furnished is taxable as BIC, even for a few weeks a year. It is added to your other furnished lettings when assessing the micro-BIC ceilings. CFE is not due in this case, however, unless the municipality decides otherwise.
Is the concierge commission deductible?
Under the actual-expenses regime, yes: it is part of the deductible management fees, as are invoiced cleaning or linen. Under micro-BIC, no expense is deducted individually, the 50% or 30% flat-rate allowance being deemed to cover them. This is often the point that tips the balance towards the actual-expenses regime when management is delegated.
Does a star rating make it possible to stay under micro-BIC?
It does as long as income from all your furnished lettings does not exceed €83,600 for 2026 income, with a 50% allowance. Without a rating, the ceiling falls to €15,000 and the allowance to 30%. Above the ceilings for two consecutive years, the actual-expenses regime applies.
Our guides help owners of high-end properties understand short-term rentals in France: regulations, tax, and choosing and overseeing a concierge company. They are for information only and do not replace advice from a legal or tax professional.