Furnished Tourist Rentals: The New Tax Rules Decrypted

IN BRIEF

Tightening of the tax regime for furnished tourist rentals in 2025.
Alignment of the taxation of classified furnished rentals with that of other furnished rentals.
Activity threshold for the micro-BIC regime set at €77,700.
Deduction reduced from 71% to 50% for classified furnished rentals and guest rooms.
Specific conditions for non-classified furnished rentals with a threshold of €15,000 and a deduction of 30%.
Regulations aimed at strengthening the regulation of tourist furnished rentals at the local level.
Possible impact on the taxation of short-term seasonal rentals.

With the entry into force of the new tax legislation in 2025, the tax modalities of furnished tourist rentals are profoundly modified. These changes, accelerated by the application of the law of November 19, 2024, aim to strengthen regulations at the local level and bring significant adjustments concerning revenue thresholds and tax deductions. This article analyzes the implications of these new provisions and their impact on property owners.

New Thresholds and Deductions #

The micro-BIC regime is intended for small businesses, allowing for simplified calculation of fiscal results. Until now, owners of classified furnished tourist rentals benefited from a revenue threshold of €188,700, while those of non-classified rentals enjoyed a threshold of €15,000. The latter has drawn significant criticism due to its inapplicability on the ground. In the year 2025, the threshold for non-classified rentals was aligned with that of other furnished rentals, which is €77,700.

Regarding deductions, the figures are also adjusted. Previously, classified tourist rentals enjoyed a deduction of 71%. Now, this deduction is reduced to 50% for all types of furnished rentals. Non-classified furnished rentals, however, present an exception with a deduction of 30% if the revenue is below €15,000.

The Impacts of the New Legislation #

This revision of thresholds and deductions falls within a fiscal authority’s desire to better regulate the sector of furnished tourist rentals. These measures aim to eliminate certain abuses and ensure fairer competition among the various market players. Furthermore, the adjustments made by the law of November 19, 2024, are part of a range of measures intended to curb real estate speculation in tight markets and to strengthen the long-term housing supply.

Owners of tourist furnished rentals, especially those who have yet to incorporate these changes, must now adapt to these new rules. This could mean an increase in their taxation, which may impact the profitability of their properties. It is therefore essential for them to evaluate the profitability of their rental projects in light of these new tax provisions.

Consequences for Property Owners #

Stakeholders in the real estate market must be aware of the direct implications of this fiscal tightening. Firstly, property owners are encouraged to audit their rental income to determine which deductions they may qualify for. For non-classified tourist rentals, the possibility of operating under the micro-BIC regime becomes increasingly restricted, leading to potential concerns for those generating revenue below €15,000.

Moreover, the question of local permits and regulations is intensifying. Municipalities can now impose stricter limits on tourist furnished rentals to encourage long-term renting. This may involve restrictions on the number of rental days allowed for a primary residence, with major implications for investors.

Preparing for the Future: Towards a New Strategy #

In light of these legislative changes, it is crucial that property owners reassess their rental management strategies. Fiscal adaptations require consideration of not only the new tax thresholds but also the local legislative framework, which can evolve rapidly. By taking the time to analyze these elements, it is possible to find viable options that ensure sufficient profitability despite the tightening of tax rules.

It is recommended to consult tax experts or real estate advisors to navigate these modifications effectively. Evaluating options with a long-term strategy in mind allows property owners to make the most of their real estate investment while complying with new legislative requirements.