French Holiday Let? How Getting Your Property Classified Could Cut Your Tax Bill Significantly (2026)

• The 2026 budget cut the Micro-BIC allowance on unclassified furnished holiday lets from 50% to 30% — and slashed the ceiling from €77,700 to €15,000
• Getting your French property officially classified by an accredited body restores the 50% allowance and €77,700 ceiling
• Classification is voluntary, costs relatively little, and the application process is straightforward — but most holiday let owners don't know it exists
• This only applies to French properties — UK holiday lets cannot be classified under the French system and always use the lower 30%/€15,000 treatment

If you let a furnished property in France as a holiday let, your tax bill just got higher — unless you do something about it.

The 2026 budget changed the rules for unclassified furnished holiday lets. The flat allowance dropped from 50% to 30%, and the ceiling for using the simplified regime fell from €77,700 to €15,000 of gross receipts. Most Airbnb-type lets are unclassified. Most owners don't know classification exists.

One administrative step restores the better treatment. Here's what it is and whether it's worth doing.

For context on how the French rental tax system works more broadly, see our guide to UK Rental Income: How to Declare It as a French Resident.

What Changed in 2026 — and What It Costs You

Under the simplified Micro-BIC regime, France applies a flat allowance to your gross rental receipts. You pay tax on the remainder.

Previously, furnished holiday lets benefited from a generous 50% allowance — meaning you only paid tax on half your gross receipts. From 2025 income (declared in spring 2026), unclassified holiday lets now receive only a 30% allowance.

Here's what that means in real money.

Say you receive €20,000 in gross holiday let receipts in a year:

The higher your income tax band, the bigger the hit. And if your gross receipts exceeded €15,000, you cannot use Micro-BIC at all under the new rules — you must use Régime Réel (declaring actual income and expenses).

The Solution — Official Classification

France has a system for officially rating furnished holiday let properties, from 1 to 5 stars. Properties that achieve an official classification are treated completely differently under the tax rules:

• 50% allowance — the old rate, fully restored
• €77,700 ceiling — the old ceiling, fully restored

Classification is awarded by accredited bodies — the main ones are Gîtes de France, Clévacances, and Atout France. Each uses an inspector who visits the property and assesses it against a set of criteria covering comfort, equipment, and presentation.

What Classification Actually Involves

The inspection: An inspector visits and scores the property against a published checklist. The criteria cover things like bed sizes, linen quality, kitchen equipment, heating, internet access, and outdoor space. The checklist is published — you can check in advance whether your property is likely to qualify and at what level.

The cost: Inspection fees vary by accrediting body and region, typically ranging from around €150 to €350. For a property generating €20,000 a year, even the tax saving at the 11% band (€440) recovers the inspection cost in the first year.

The timeline: From application to receiving your classification certificate typically takes 4 to 8 weeks depending on the body and your region.

The renewal: Classification certificates are valid for 5 years. You then need a new inspection to maintain classified status.

The star level: You do not need a high star rating to qualify for the better tax treatment — any official classification from 1 star upwards qualifies. A 1-star or 2-star rating that your property comfortably achieves is all that's needed from a tax perspective.

How to Apply

1. Choose an accrediting body. The three main ones are:

   • Gîtes de France — well established, particularly for rural and agricultural properties
   • Clévacances — covers a wide range of property types
   • Atout France — the national tourism development agency, which also accredits other bodies

2. Review the checklist. Each body publishes its classification criteria. Download the checklist for the star level you are targeting and assess your property against it before applying.

3. Book the inspection. Contact your chosen body directly — most have regional offices. Pay the inspection fee and arrange a visit date.

4. Receive your certificate. Once classified, you receive an official certificate confirming your rating. Keep this — you will need to reference it on your tax return and it may be requested if the tax office queries your Micro-BIC rate.

5. Declare correctly on your return. On Form 2042-C PRO, under Revenus des locations meublées non professionnelles (LMNP income), use the boxes for meublé de tourisme classé — not the standard furnished let boxes:

• Box 5NG — Declarant 1 (classified gîte / meublé de tourisme classé)
• Box 5OG — Declarant 2
• Box 5PG — Dependant

Standard unclassified lets use Boxes 5ND/5OD/5PD. Using the wrong boxes means the wrong allowance is applied — 30% instead of 50%.

For French property, enter your gross receipts and the 50% allowance is applied automatically. For UK property, manually subtract the 50% allowance and enter the taxable profit only.

Keep your classification certificate on file — the tax office may request it if they query the rate applied.

Is It Worth It?

Run the numbers for your property.

If your gross receipts are below €15,000: The ceiling issue doesn't affect you — you can still use Micro-BIC either way. The question is whether the difference between a 30% and 50% allowance justifies the inspection cost.

On €10,000 of gross receipts at 11% income tax:

• Unclassified: taxable income €7,000, tax €770
• Classified: taxable income €5,000, tax €550
• Annual saving: €220

At 30% income tax the saving doubles to €600 a year — the inspection pays for itself in the first year.

If your gross receipts exceed €15,000: Classification is almost certainly worth it. Without it, you cannot use Micro-BIC at all and must use Régime Réel (actual income and expenses). If you don't have significant deductible expenses, Régime Réel will likely produce a higher tax bill than classified Micro-BIC.

The break-even: For most properties at 11% income tax, the inspection fee is recovered within 1–2 years. At 30%, within the first year.

One Important Caveat — UK Properties

This analysis applies only to French properties. A UK furnished holiday let cannot be classified under the French system. UK holiday let income always uses the 30%/€15,000 treatment on a French return, regardless of any UK accreditation or star rating.

If you let both a French and a UK property, the classification strategy applies to the French property only.

What If Régime Réel Is Better for You?

If your French holiday let has significant running costs — mortgage interest, repairs, renovation costs, agent fees, depreciation — Régime Réel may still produce a lower tax bill than even the classified Micro-BIC allowance. Under Régime Réel you deduct actual expenses rather than a flat percentage.

You can switch between Micro-BIC and Régime Réel each year for furnished rental — unlike unfurnished rental where electing Régime Réel locks you in for 3 years. So if classification restores your Micro-BIC eligibility, you can still choose Régime Réel in a year when your costs are particularly high.

Common Mistakes

1. Assuming classification is only for high-end properties. Any official rating from 1 star upwards qualifies for the better Micro-BIC treatment. You do not need a 4- or 5-star property.

2. Thinking an Airbnb "Superhost" badge or similar platform rating counts as classification. It doesn't. Only official French classification from an accredited body qualifies. Platform ratings have no effect on your tax treatment.

3. Not checking the classification criteria before applying. The checklists are published. Review your property against the criteria before paying for an inspection — a simple equipment gap (missing a second saucepan, inadequate bed sizes) can be fixed cheaply before the visit.

4. Forgetting to renew after 5 years. Classification certificates expire. A lapsed certificate means you fall back to unclassified treatment until you renew.

5. Applying the classified rate to a UK property. The 50% allowance and €77,700 ceiling apply to French classified properties only. UK holiday lets always use the 30%/€15,000 treatment.

Frequently Asked Questions

Does my French holiday let need to be classified to use Micro-BIC?

No — but without classification, you are limited to the 30% allowance and €15,000 ceiling. Classification restores the 50% allowance and €77,700 ceiling. If your gross receipts exceed €15,000, classification is the only way to stay on Micro-BIC.

Which accrediting body should I use?

All three main bodies — Gîtes de France, Clévacances, and Atout France — produce classification that qualifies for the better Micro-BIC treatment. The choice between them often comes down to which has a stronger presence in your region and which aligns better with how you market your property.

How long does classification last?

Five years. You then need a new inspection to maintain classified status. Mark the renewal date in your calendar — a lapsed classification means you immediately lose the better tax treatment.

Can I classify my property myself?

No — classification must be awarded by an accredited body following an official inspection. Self-assessment or platform ratings do not qualify.

What if my property fails the inspection?

The inspector will usually flag issues before formally completing the assessment. In practice, most properties that prepare properly will achieve at least a 1-star rating. If specific issues are identified, you can address them and request a new inspection.

Does classification affect anything other than my tax treatment?

Yes — a star rating can improve your property's visibility and credibility with guests, and some booking platforms give higher placement to classified properties. The tax saving is the main financial benefit, but classification has broader marketing value too.