Income Tax | Impôt sur le revenue
Update May 5th 2025.
With the information below, we inform you of the main points of the latest legal changes regarding the furnished rental of your second home in France. These changes will impact the income for this year (i.e., 2025). For further information we advise to contact your tax consultant or accountant.
Under certain conditions, you can make use of the micro-regime. In that case, you declare the gross rental income received, without deducting any expenses, and the French tax authorities automatically apply a fixed percentage deduction for costs.
The regulations for income in 2025 have changed compared to last year.
| Type of rental (furnished) | French term | % of fixed cost deduction (2024) | % of fixed cost deduction (2025) | Micro-BIC ceiling (2024) | Micro-BIC ceiling (2025) |
|---|---|---|---|---|---|
| Standard tourist rental | Meublés de tourisme non classés | 50% | 30% | €77,700 | €15,000 |
| Classified tourist rental | Meublés de tourisme classés | 71% | 50% | €188,700 | €77,000 |
It is also possible—and in some cases even mandatory—to deduct the actual expenses. In that case, your French accountant will prepare an annual profit and loss statement.
General information
France is authorized to levy all taxes related to real estate located in France. If you earn rental income from renting out your furnished property, you are therefore liable to pay taxes in France. In France, the term for income tax is Impôt sur le revenu.
We distinguish between real estate in private ownership and real estate owned by a company.
1. Private Ownership
Key principles applicable to real estate held in your personal (private) name:
- Filing a tax return is the responsibility of the taxpayer.
- Filing is always done on your own initiative.
- Filing is required annually.
- Tax returns must be filed before June 1 of the following year.
- Tax returns are submitted to the tax office for foreign residents (SIPNR).
The website Le site officiel de l'administration française provides a clear explanation.
In France, there are two options for renting out furnished private property. Depending on the rental income received, you can choose between the micro-BIC regime and the so-called real profit tax regime.
- Regime reël: In principle, all expenses incurred for the operation of a furnished rental activity (service fees from VillaSud, energy, water, maintenance, insurance, property taxes, depreciation, and interest) are proportionally deductible from the gross rental income, including depreciation on the property.
- Micro-BIC Regime (Bénéfices industriels et commerciaux): A fixed percentage of the gross rental income is deductible. If your property is classified, this percentage is higher than if it is not classified.
2. Ownership by a Company
If the property is held in the name of a French or Dutch company, you are required to file an annual corporate tax return in France.
The corporate tax rate depends on the specific situation. If the company distributes its profits as dividends, dividend tax must also be paid on these distributions.
Expert Advice
We recommend submitting your French income tax returns on time (before June 1 of the following year). Given the complexity of the French administrative and tax filing systems, it is wise to seek assistance from an expert accounting firm or tax consultant.
Disclaimer
VillaSud strives to provide accurate and up-to-date information on this website. While this information is compiled with the utmost care, VillaSud does not guarantee the completeness, accuracy, or timeliness of the information. The legal information on this website is general in nature and cannot be considered a substitute for legal advice.
If you notice any errors or ambiguities, please let us know! We will correct them as soon as possible.