2026 Changes to Tax Rules for Furnished Rental Property Owners in France

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The taxation rules for owners of furnished rental properties in France are changing for income earned from 2025 (to be declared in 2026). Here’s what property owners need to know:

1. Unclassified Tourist Furnished Rentals

For owners of unclassified furnished tourist rentals:

  • The turnover threshold for qualifying under the micro-tax regime is reduced from €77,700 to €15,000.

  • The tax deduction rate under this regime decreases from 50% to 30%.

2. Classified Tourist Rentals and Guesthouses

For classified furnished tourist rentals and guesthouses:

  • The turnover threshold for the micro-tax regime is reduced from €188,700 to €77,700.

  • The tax deduction rate under this regime decreases from 71% to 50%.

If your turnover exceeds €15,000 (unclassified) or €77,700 (classified), for two consecutive years (N-2 and N-1), you are now required to adopt the real taxation regime.

If you were previously under the micro-tax regime and are moving to the real taxation regime, you must notify your local Service des Impôts des Entreprises (SIE) via the secure messaging system available in your professional account on impots.gouv.fr to ensure the change is applied.

3. Calculation of Capital Gains for Non-Professional Furnished Rental Sales

Since February 15, 2025, if you sell your furnished rental property, amortization previously applied during the rental period must be deducted from the acquisition price to determine the capital gain. Exceptions apply only in cases specified under Article 150 VB of the French General Tax Code.

How to Contact Your SIE : Tax property

The contact details of your SIE can be found via the “Contact and Appointment” section on the homepage of impots.gouv.fr.

If you do not yet have a professional account, you must create one by navigating to “Connexion à l’espace professionnel” and then “Créer mon espace professionnel” on the impots.gouv.fr website. For guidance, refer to the focus sheet “Créer un espace professionnel simplifié.”

Note: Activation of a new professional account currently requires a one-day processing period. Once active, the account allows you to complete declaration procedures related to the real taxation regime.

Additional Resources: Tax property

For further information, you can consult the documentation available online at impots.gouv.fr or contact your Service des Impôts des Entreprises directly.

ESCEC International thanks you for your attention to these important changes and encourages all property owners to review their tax status carefully to ensure compliance.