Short-term rental tax, explained simply

Income taxed as BIC

Income from a furnished letting, short-term included, falls under industrial and commercial profits (BIC). Two regimes exist: micro-BIC, with a flat-rate allowance, and the actual-expenses regime (régime réel), where you deduct your real costs and the depreciation of the property.

What the Le Meur law changed

From 2025 income onwards, micro-BIC for an unclassified tourist rental is capped at €15,000 of annual receipts, with a 30% allowance.

A classified tourist rental (one to five stars) benefits from a €77,700 ceiling and a 50% allowance. Classification therefore becomes a genuine tax lever.

The actual-expenses regime, often more advantageous

Under the régime réel, depreciation of the property and furniture sharply reduces taxable income, sometimes to zero for several years. In return, proper accounts must be kept, usually entrusted to a chartered accountant.

Note: since the 2025 Finance Act, the depreciation deducted is added back when calculating the capital gain on resale.

Other points to watch

The business property tax (CFE) generally applies from the year following your first year of activity. Above certain income thresholds, professional furnished landlord status (LMP) triggers specific social security contributions.

Every situation is different: have your choice of regime confirmed by a chartered accountant before you start.