Furnished vs Unfurnished Rental in France: Which Tax Regime Applies? (2026)

Whether your French rental is furnished or unfurnished decides which entire tax regime applies — not just which allowance you get

Unfurnished rental is taxed as revenus fonciers (property income) under Micro-Foncier or Régime Réel. Furnished rental is taxed as BIC (business income) under Micro-BIC or Régime Réel — a different category with its own thresholds

For ordinary long-term furnished letting, the Micro-BIC threshold is €77,700 for 2025 income (the return you're filing now) with a 50% allowance — a completely different figure from the much lower thresholds that apply to short-term holiday lets specifically. This rises to €83,600 for 2026 income, filed in 2027

You become a professional landlord (LMP) only if your furnished rental receipts exceed both €23,000 and your other household income — not either one alone

Furnishing a room or a flat before you let it out feels like a small, practical decision — a bed, a table, some basic kitchen equipment, so the tenant doesn't have to buy everything from scratch. For French tax purposes, it isn't small at all. It moves the income into an entirely different tax category, with its own thresholds, its own allowance, and its own declaration forms.

This article covers French property let by a French resident. If you own rental property in the UK instead, the mechanics are different — see UK Rental Income on Your French Tax Return. If you're specifically letting a French property as a classified or unclassified holiday let (a gîte, an Airbnb-style short-term let), see Getting Your French Holiday Let Classified instead — the thresholds work differently from ordinary long-term furnished letting, which is what this article covers.

For the wider picture of how French tax works for UK expats generally, see How the French Tax System Works.

Two Different Tax Categories, Not Just Two Allowances

Furnished and unfurnished rental in France aren't two flavours of the same tax treatment. They're genuinely separate categories.

Unfurnished rental is taxed as revenus fonciers — property income, the same category as owning land or an empty building. You use Micro-Foncier (a flat 30% allowance, if gross receipts stay under €15,000) or Régime Réel (deduct actual costs).

Furnished rental is taxed as BIC — bénéfices industriels et commerciaux, business income. France treats providing a furnished let as a service, not just shelter, because you're supplying beds, tables, chairs, and the basics needed to live there — not simply handing over an empty space. That reclassification is what pulls it out of the property-income rules entirely and into the business-income ones, with a different regime, different thresholds, and a different allowance rate.

The Threshold That's Easy to Miss: €77,700

For an ordinary long-term furnished let — not a classified or unclassified holiday let, just a normal furnished tenancy — the relevant regime is Micro-BIC, with a 50% allowance on receipts up to €77,700 for 2025 income (the return being filed in 2026). That ceiling rises to €83,600 for 2026 income, which won't be declared until 2027 — worth knowing now if you're close to the line, but not the figure to use on this year's return.

This is a genuinely different figure from the thresholds that apply to short-term tourist accommodation specifically: an unclassified holiday let (most Airbnb-style short lets) is capped at €15,000 with only a 30% allowance, while a classified holiday let (officially rated by a body like Gîtes de France) shares the same threshold and 50% allowance as ordinary furnished letting.

If you've furnished a flat for an ordinary long-term tenant, you're not in either of the holiday-let categories — you're in the general Micro-BIC bracket, at the higher threshold and the higher allowance.

Above the threshold, Micro-BIC no longer applies at all, and you move to Régime Réel, deducting actual costs and depreciation instead of the flat allowance.

LMNP or LMP — Which Are You?

Furnished landlords in France fall into one of two statuses:

LMNP (Loueur en Meublé Non Professionnel) — non-professional furnished landlord. This is the status almost every accidental landlord actually has.
LMP (Loueur en Meublé Professionnel) — professional furnished landlord, with materially different tax and social security consequences.

You remain LMNP as long as at least one of these is true:

Your household's annual furnished rental receipts are under €23,000
Your furnished rental receipts are lower than your household's other income (salary, other business income, etc.)

You only become LMP if both conditions fail at once — receipts exceed €23,000 and they exceed everything else your household earns. Crossing €23,000 alone doesn't make you LMP if it's still less than your other income; and staying under €23,000 keeps you LMNP regardless of how that compares to your other earnings.

Why This Matters More Than It Looks

The furnished/unfurnished decision isn't just about which allowance percentage you get. It changes:

The declaration form and category itself — property income (revenus fonciers) versus business income (BIC), reported differently on your return
Which threshold applies to you — €15,000 for Micro-Foncier, versus €77,700 for ordinary furnished Micro-BIC on this year's return (rising to €83,600 for next year's income), versus the much lower €15,000/30% bracket that applies specifically to unclassified holiday lets
Whether you could end up LMP — a status that doesn't exist at all on the unfurnished side

None of this depends on your intent. Whether you furnished the property to make it more attractive to tenants, or because you were planning to move back in eventually, or simply because it came furnished when you bought it — the tax treatment follows the fact of furnishing, not the reason behind it.

Common Mistakes

Assuming furnished vs unfurnished just changes the allowance percentage. It changes the entire tax category — property income versus business income — with separate forms, separate thresholds, and separate rules.
Applying holiday-let thresholds to an ordinary long-term furnished letting. The €15,000/30% (unclassified) figure applies specifically to short-term tourist accommodation. Ordinary long-term furnished letting uses the same threshold and allowance as a classified holiday let (€77,700/50% for this year's return), not the lower unclassified holiday-let figure.
Thinking crossing €23,000 alone makes you a professional landlord. LMP status requires both conditions — receipts above €23,000 and above your other household income. One alone isn't enough.
Not realising furnishing a rental was a tax decision at all. Many people furnish a property for entirely practical reasons — convenience for the tenant, an easier let — without registering that it moved them into a different tax regime.
Assuming the choice is permanent. Whether you're on Micro-Foncier/Micro-BIC or Régime Réel can generally be revisited, though switching regimes has its own rules and timing — check the specific conditions before assuming you're locked in either way.

Frequently Asked Questions

Does furnishing a rental property really change how it's taxed?

Yes, completely. Unfurnished rental is taxed as property income (revenus fonciers). Furnished rental is taxed as business income (BIC) — a different category with its own regime, thresholds, and allowance.

What's the Micro-BIC threshold for an ordinary furnished let in France?

€77,700 for 2025 income — the return being filed in 2026 — with a 50% flat allowance on receipts. This threshold rises to €83,600 for 2026 income, filed in 2027. This applies to ordinary long-term furnished letting — the figures are different for short-term unclassified holiday lets specifically.

Is a furnished holiday let taxed the same as an ordinary furnished letting?

Not always. An unclassified holiday let (most short-term/Airbnb-style lets) has a lower threshold of €15,000 with only a 30% allowance. A classified holiday let (officially rated) shares the same threshold and 50% allowance as ordinary furnished letting.

When do I become a professional landlord (LMP) instead of LMNP?

Only when both conditions are met at once: your furnished rental receipts exceed €23,000, and they exceed your household's other income. Meeting only one of these keeps you LMNP.

If my furnished rental income goes above the Micro-BIC threshold, what happens?

Micro-BIC no longer applies. You move to Régime Réel, where you deduct actual costs and depreciation instead of the flat 50% allowance.

Can I choose to be taxed as unfurnished even though the property is furnished?

No. The tax treatment follows whether the property is genuinely furnished, not a choice you make separately — if it's let furnished, it falls under the BIC/furnished rules regardless of preference.

Sources: Service-public.gouv.fr — Impôt sur le revenu, revenus d'une location meublée (confirms the €77,700 Micro-BIC threshold for 2025 income, rising to €83,600 for 2026 income, both at a 50% allowance for ordinary furnished letting; the separate €15,000/30% unclassified holiday-let bracket; and the exact "at least one of two conditions" LMNP/LMP test, quoted directly: "Vous êtes considéré comme loueur non professionnel si au moins l'une des 2 conditions suivantes est remplie") · uk-rental-income-french-tax-return.md (this project's own verified figures for the equivalent UK-property mechanics, referenced for contrast without re-deriving)