A landlord renting out a furnished studio for the year and another renting their apartment on a short-term platform do not fill out the same boxes on their declaration. Furnished rental income falls under industrial and commercial profits (BIC), not property income, and this distinction changes everything: applicable regime, allowance, deductible charges. For the 2024 income declaration, several announced measures were ultimately not implemented, which created lasting confusion.
Furnished rental income 2024: what hasn’t changed despite announcements
The finance law for 2024 planned to significantly reduce the micro-BIC allowance for unclassified tourist rentals, lowering it to 30% with a reduced revenue cap. Law No. 2024-1039 of November 19, 2024, known as the Le Meur law, ultimately postponed this reform for income received from 2025 onwards.
For the 2024 income declaration, the old micro-BIC regime remained applicable to unclassified tourist rentals. Landlords who anticipated the reduction in allowance in their profitability calculations had a pleasant surprise, but those who did not follow legislative news sometimes opted for the real regime unnecessarily. The detailed tax rates can be found in the Immo Factory guide, which clearly outlines the current thresholds.
This legislative delay has a practical consequence: unclassified tourist rental operators who received income below the old cap were able to continue declaring under micro-BIC with the usual allowance, without switching to the real regime.
Micro-BIC or real regime: concrete choice for a furnished landlord
The choice between micro-BIC and the real regime is not just a matter of administrative simplification. It is determined by a simple calculation: do my actual charges exceed the flat-rate allowance?
When micro-BIC is sufficient
The micro-BIC applies a flat-rate allowance on gross receipts. For a classic furnished rental (tenant’s main residence), this allowance covers charges, maintenance, and insurance. If the property is new, not heavily indebted, with moderate charges, the flat-rate may be suitable.
The conditions to benefit from it require that the annual receipts from the furnished rental activity do not exceed the cap set by law. Beyond that, the real regime applies automatically.
When the real regime becomes profitable
The real regime allows for the deduction of actual charges (loan interest, renovation work, property tax, management fees, insurance) and especially to practice depreciation of the property and furniture. For an apartment purchased on credit with renovation work, the difference is often significant.
Here are the main deductible items under the real regime:
- Loan interest and banking fees related to the acquisition of the furnished property
- Depreciation of the purchase price of the housing (excluding land) and furniture, spread over several years
- Current charges: property tax, non-occupying owner insurance, accounting fees, maintenance
The accounting result can thus be brought down to zero, or even generate a carry-forward deficit. The real regime can sometimes produce zero euros in tax for several years on furnished rental income.
LMNP capital gains reform: the depreciation trap upon resale
This is the point that many non-professional furnished landlords discover too late. Until recently, the depreciations deducted under the real regime did not enter into the calculation of the capital gains upon resale of the property. This mechanism made the LMNP particularly attractive: it reduced taxation during the rental period without penalties upon exit.
Law No. 2025-127 of February 14, 2025, regarding the 2025 finance law, changed the game. Since February 15, 2025, the deducted depreciations are reintegrated into the calculation of the taxable capital gain. This measure does not concern sales made in 2024, but it radically changes the strategy for anyone considering reselling a property acquired under LMNP.
In practice, a landlord who has deducted several tens of thousands of euros in depreciations over ten years will see their taxable capital gain increase accordingly upon sale. The tax advantage obtained during the operation is partially recaptured at the time of sale.
What this changes for the 2024 income declaration
For income received in 2024, nothing changes on this point. Depreciation remains fully deductible, and sales concluded before February 15, 2025, are exempt from reintegration. Feedback varies on the best strategy to adopt for recently acquired properties, as it all depends on the intended holding period.
LMNP declaration 2024: forms and deadlines to know
The declaration of furnished rental income goes through two distinct steps:
- The tax package (form 2031 and annexes) to be submitted to the corporate tax office, no later than May of the following year, for landlords under the real regime
- The personal income declaration (form 2042-C-PRO) where one reports either the amount of gross receipts (micro-BIC) or the net result (real regime)
- Registration with the commercial court registry via the INPI single window, mandatory to obtain a SIRET number before any declaration
Under micro-BIC, the declaration is simplified: annual receipts are reported on the 2042-C-PRO and the administration applies the allowance. Under the real regime, the tax package requires rigorous accounting, often entrusted to an accountant whose fees are also deductible.
Every new furnished landlord must register within fifteen days of starting the activity. Skipping this step exposes one to late penalties and the inability to submit the tax package on time.
The taxation of furnished rental income in 2024 remains generally favorable, especially under the real regime. The real break occurs starting in 2025 with the tightening of micro-BIC for tourist rentals and the reintegration of depreciations into the capital gain. For a property held for a long time, the real regime retains all its interest. For a medium-term resale, every charge item and each year of deducted depreciation must be included in the capital gain simulation before any decision.
