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House on a Bridge

Holiday Rental Income in France

The law is changing for people who declare furnished holiday rental income in France.

If rent a Gîte, an apartment, house or Chambres d'hôtes this could affect you.

There is a lot of information and ‘chatter’ regarding the changes, however:

  • there has been some errors made in some government publications

  • some laws are still 'proposals'

  • some aspects have yet to be finalised

There should be more information and decisions made after the Summer Olympics.

The overall aim of the new legislation is:

  • to make more rental property available for local people who need permanent accommodation

  • to level the playing field between hoteliers and property owners who use systems such as Air BNB and other booking sites

  • to protect rural tourist accommodation such as Chambre D’Hotes

There are two main systems for declaring your rental income:




  • you declare your GROSS income

    • do NOT deduct agency, booking, Air BnB fees, etc. The GROSS is before these fees are deducted.

  • a discount is applied for example 30%

  • income tax and social tax will be applied to the remaining 70%


The rate of income tax is applied at your personal or flat rate for non-residents. The social tax is applied at 17.2% unless you have an S1 exemption certificate where you pay 7.5%. An S1 can be granted to people of state retirement age with a state pension originating from an EU/Swiss/UK/EEA country.


The 'Regime Reel' fiscal status is a ‘profit and loss’ system of declaring your rental income.


For this fiscal status you will need to:

  • keep a record, receipts and invoices of all ‘direct operating costs’

  • keep bank statements in account dedicated to your rental property

  • keep a record of all GROSS income

  • pay higher accountancy costs

  • pay costs for property valuations

  • if you OPT for Regime Reel you must remain on this system for at least three years

  • 'Regime Reel' may affect your capital gains calculation when you sell the property


To calculate the PROFIT:

  • you will declare your GROSS income

  • deduct the ‘direct operating costs’

  • deduct the depreciation based on the value of your property and furniture

These costs need to be related to the ‘operation’ of the rental such as:

  • Cleaning/Laundry

  • Maintenance and Repairs

  • Insurance

  • Pool Maintenance

  • Replacing broken items

  • Electricity, gas and water

  • Internet

  • Management, agency, legal and accountancy


Currently, you can add to the list of costs DEPRECIATION on the value of your property.  This is approx. 2% per year of the value of property from the point you started renting your property.  For example, if your property was valued at 340K when you started renting, then, you can claim approximately 6500€ as a depreciation expense.

A word about LMP

23k + in French Rental Income + it is your primary income in France = obligation to be a LMP ( loueur en meublé professionnel)



If you are a non-resident with a property in France you rent for holiday accommodation with income of more than 23K - you must become a LMP Regime Reel.

You will pay a flat rate of 20% income on the profit.  You may receive a bill from URSSAF for social security contributions for 21.3% of the GROSS income not on the profit.  

What can we do?  If you receive the social security contributions:

- then we can try and 'appeal' and they may exonerate you of this charge as you are using the French social security system

- ask them to switch you to the 'social tax' rate of 17.2% or 7.5%

We are hoping for a law change or clarifications however after our recent calls to URSSAF and the CSM - they intend to send bills to people who are LMP. 


If you have holiday rental income of more 23K and it is your main source of income - you must be a LMP Regime Reel.

You will pay income on the profit at your French personal income tax rate and URSSAF social security contributions at 21.3% or 12.3% on the GROSS.  This is not such an issue for residents as you have to pay social security in one way or another for your Carte Vitale but it is a disadvantage for residents who have an S1. 


  • if you expect to receive less than 15K in rental income in 2024 you can remain as a Micro BIC LMNP with the discount rate of 30%

  • if you exceed 15K then you will be obliged to switch to 'Regime Reel'

  • if you exceed 23K and it is your main source of income in France will probably have be under the LMP status

There are many other conditions which may increase your 15K limit to 30K - but these are subject to confirmation.

Chambre d'hôtes

  • if you are a registered Chambre d'hôtes you will remain at the 71% allowance before Income Tax is applied

  • you will pay social security contributions at 12.3% on the gross amount

  • if you have an exemption from social security - after the 71% allowance you will pay either 17.2% or 7.5% in social tax


Until ALL legislation is confirmed we recommend the following:

  • if you expect to receive less than 15K in rental income in 2024 then budget for an allowance of 30% instead of 50%

  • if you think you may go over 15K then start collecting receipts and invoices as highlighted in 'Regime Reel'.  Keep all your invoices and receipts neatly in a lever arch file and list each one on a spreadsheet or word document.  Make sure each RECEIPT is an official valid proof of purchase with:

    • name and address of the supplier​

    • TVA number

    • price 

    • details of the product/service

  • after speaking to various tax offices we understand, that IF you exceed 15K in rental income and you will be automatically switched to 'Regime Reel' – if the following year your income is under 15K you should revert back to 'Micro BIC' HOWEVER but it will be on a case by case basis - this translates as the system is unclear and the local offices don't have a clear policy. 

  • if by deducting your EXPENSES from your GROSS income you make a LOSS - then you can OPT for Regime Reel but by OPTING and not being SWITCHED you have to remain on the Regime Reel system for three years.


All the information on this page is subject to change.

This will depend on the outcome of laws changes enacted by the French Government.

Considering Renting Holiday Accommodation?


If you have any further questions or would like help with your French Rental Income, please contact us 

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