Furnished rental taxation in Paris: the owner's guide

You rent a furnished apartment in Paris — or you are seriously thinking about it. The good news: furnished rentals offer a significantly more favorable tax framework than unfurnished rentals. The not-so-good news: you need to know how to navigate between systems, statuses, and thresholds to make the most of it.

Micro-BIC or real tax regime? LMNP or LMP? Depreciation, social security contributions, CFE — these are all concepts that may seem technical at first glance, but they have a direct impact on your net yield. This guide gives you the keys to understand your situation and make the right decisions, whether you are a novice landlord or an experienced property owner.

Furnished rental, a tax category in its own right

First thing to remember: your rental income from a furnished property does not count as property income. It falls under industrial and commercial profits (BIC), a tax category specific to commercial activities. This category shift is what makes furnished rentals so attractive from a tax perspective — provided you choose the right tax regime.

To qualify under the BIC, your accommodation must be genuinely furnished as defined by law: bedding, living and dining furniture, fully equipped kitchen, household equipment. The tenant must be able to move in without bringing anything. This is a requirement that many owners underestimate, but it determines your entire tax regime.

Micro-BIC or real tax regime: which approach to choose?

The income from your furnished rental is taxable under one of these two regimes. The choice is not trivial: it can make your taxable base vary threefold depending on your profile.

The micro-BIC: simple, but not always optimal

The micro-BIC applies automatically if your annual revenues do not exceed current thresholds. In 2025, this threshold is set at €77,700 for a classic furnished rental (one-year lease or mobility lease), and reduced to €15,000 for unclassified tourist furnished rentals — a direct consequence of the tax tightening on Airbnb-type rentals in recent years.

Its main advantage: no bookkeeping required. You declare your gross income on form 2042 C-PRO, and the tax administration automatically applies a flat-rate allowance of 50% for classic furnished properties or 30% for unclassified tourist furnished properties. You are only taxed on half (or 70%) of your income.

This regime is suitable if your actual expenses are low — typically, if you bought your property cash, renovations are complete, and you have no active mortgage. Otherwise, the real tax regime will almost systematically be more advantageous.

The real tax regime: the tool for owners who optimize seriously

Under the real tax regime, you deduct all your actual expenses: loan interest, property management fees, insurance, maintenance work, property tax, CFE. But the major advantage remains the accounting depreciation of the property and its furniture.

In practice, your apartment is depreciated over 40 to 50 years, and your furniture over 5 to 10 years. This depreciation reduces — sometimes completely offsets — your taxable income, without you having to spend an extra euro. This is a powerful tax-saving mechanism that the micro-BIC cannot replicate.

The downside: more demanding accounting. Balance sheets, income statements, depreciation schedules — it is highly recommended to work with a chartered accountant. Note that their fees are also deductible.

LMNP or LMP: your status changes everything in the end

Beyond the tax regime, the taxation of your furnished rental also depends on your landlord status.

You are a Non-Professional Furnished Landlord (LMNP) if at least one of these two conditions is met: your annual rental income is under €23,000, or it remains lower than the total of other professional income of your household.

If you cross both thresholds simultaneously, you automatically switch to Professional Furnished Landlord (LMP) — with significantly different consequences.

The LMP status allows you to deduct any deficit from the household's total income, without limit. It also opens up an exemption from the IFI (wealth tax) for the properties concerned, and an exemption from capital gains tax after five years of activity if revenues remain under €90,000. In return, you are subject to URSSAF social security contributions.

With LMNP, deficits can only be offset against BIC income of the same nature — which limits the immediate benefit. However, the status is simpler, without social security contributions, and capital gains tax is progressively reduced based on the holding period.

Other levies not to be forgotten

Taxation of furnished rentals is not limited to income tax. Several other contributions are added and should be anticipated in your profitability calculation.

Social security contributions amount to 17.2% (CSG, CRDS, solidarity tax) and apply to your net taxable rental income — whether under the micro-BIC or real tax regime.

The CFE (Corporate Property Tax) is due by every furnished landlord, starting from the first property. Its amount depends on the municipality, the surface area, and the rental value of the accommodation. Exemptions exist for certain classified furnished properties or guest rooms integrated into the primary residence — ask your local tax office (SIE) for details.

VAT is in principle not applicable to residential furnished rentals. It becomes applicable if you offer at least three of the four hotel-like services (breakfast, linen provision, regular cleaning, reception) — a scenario that concerns serviced residences more than the classic landlord.

What many Parisian landlords miss

The taxation of furnished rentals is a powerful — but under-exploited — lever. Many landlords remain on the micro-BIC for convenience or by default, without ever simulating what the real tax regime could save them. Others choose short-term rentals attracted by high gross income, without weighing the tax and regulatory constraints that come with it in Paris — rent control, registration at the city hall, 90-day limit for a primary residence.

The right tax strategy depends on your personal situation: your marginal tax bracket, whether or not you have a mortgage, the type of lease you want to offer, and your medium-term asset goals.

Are you a property owner in Paris and want to delegate the management of your furnished property?

BAUVAUT supports Parisian landlords with a tailor-made approach — from letting to daily management, whether you choose short-term rentals, mobility leases, or long-term furnished rentals. Contact us for a free assessment of your situation.