France wants to bring homes back onto the long-term rental market. Tax advantages for furnished holiday lets have therefore been cut step by step in recent years. Because the rules changed several times, here is an overview of how things developed and where they stand now.
Looking back: the back-and-forth since 2024
- Up to 2023 income: under the simplified micro-BIC regime, non-classified holiday lets received a 50% flat allowance on income up to €77,700, classified ones even 71% up to €188,700
- 2024 Finance Act: passed at the end of 2023, it was meant to cut the allowances drastically – even retroactively for 2023. After protests, landlords were allowed to choose the old rule for 2023, and in the end the old figures also applied to 2024 income
- Loi Le Meur (November 2024): made the cuts final, applying from 2025 income
The position for 2025 income (2026 return) and 2026
- Non-classified holiday let: micro-BIC only up to €15,000 income, flat allowance 30%
- Classified holiday let (meublé de tourisme classé) and guest rooms (chambres d'hôtes): flat allowance 50%, with a considerably higher income ceiling
- Above these ceilings the régime réel applies automatically: actual costs and depreciation instead of a flat allowance. This is often more favourable but more work, and usually only worthwhile with an accountant
- Depreciation and sale: since 2025, depreciation claimed under the régime réel is added back to the gain when you sell (see Capital gains on sale)
- Social charges: from 2025 income they rise from 17.2% to 18.6% for furnished lettings. If you are covered by social security in another EU country, you still pay only 7.5%
- The €23,000 income threshold remains important: above it you can become a professional landlord (LMP) with separate social contributions, if rental income also exceeds the household's other income
Is classification worthwhile?
Usually yes. The 1- to 5-star rating is carried out by an accredited inspection body, costs a few hundred euros one-off and is valid for 5 years. In return the flat allowance rises from 30 to 50%, and your listing looks more professional. Fittings, size, condition and service are assessed.
Beyond tax
Registration number, day limits, copropriété rules and energy rating are summarised in Holiday letting, the legal way.
For owners resident abroad
- Rental income is taxed in France (minimum rate for non-residents: 20%)
- You usually have to declare it in your country of residence too, where it typically affects your tax rate
- Because the systems differ, advice from an accountant who knows both countries is worthwhile
All information without guarantee, as of November 2026. It is for general guidance only and does not replace legal or tax advice.
