LMNP micro-BIC or réel: how to choose

For a furnished letting in France, you are under micro-BIC by default as long as your receipts do not exceed €83,600 (standard letting, classified tourist let, bed and breakfast) or €15,000 (unclassified tourist let): a flat allowance of 50%, or 30% for an unclassified tourist let, covers your expenses. The réel regime lets you deduct actual expenses and the depreciation of the property and furniture. It almost always wins when you bought recently and are repaying a loan; micro-BIC can do better with few expenses and a low-value property.

The rules below are those in force on 9 November 2026. Amounts are those for 2026 income, declared in 2027.

This guide is part of our LMNP réel: the complete guide.

Micro-BIC ceilings and allowances#

For 2026 income (article 50-0 of the French tax code, CGI):

Type of letting	Receipts ceiling	Allowance
Standard furnished letting (long term, mobility lease, student)	€83,600	50%
Classified tourist let, bed and breakfast	€83,600	50%
Unclassified tourist let	€15,000	30%

The allowance is never less than €305. Receipts include rent and the service charges billed to the tenant.

For 2025 income, declared in 2026, the ceiling was €77,700 instead of €83,600; the other figures are unchanged (impots.gouv.fr). The 2026 finance law did not change this regime.

When you leave micro-BIC#

A year's regime depends on the receipts of the two previous years. You leave micro-BIC only after two consecutive calendar years above the ceiling, and return to it as soon as receipts fall back below (service-public.gouv.fr).

What réel lets you deduct#

Under réel, your result is receipts, minus actual expenses, minus depreciation:

• expenses: loan interest, loan insurance, property tax, non-recovered service charges, insurance, management fees, upkeep and repairs, CFE, accounting fees;
• depreciation of the building (excluding land) and the furniture, spread over their useful life.

Depreciation cannot create a loss: at most it brings the result to zero, and the excess is carried forward with no time limit (article 39 C of the CGI). The detail is in our guide LMNP depreciation: a worked example.

Three worked examples#

The examples depreciate the building over 30 years and the furniture over 7 years, straight line, as our calculator does.

A studio bought with a loan#

A furnished studio let year-round, €9,600 of receipts. Bought for €180,000 including costs, 15% land, €7,000 of furniture. Expenses for the year, interest included: €3,200. Depreciation: €5,100 for the building and €1,000 for the furniture, so €6,100.

Item	Micro-BIC	Réel
Receipts	€9,600	€9,600
Allowance or expenses	50% = €4,800	€3,200
Depreciation deducted	—	€6,100
Taxable result	€4,800	€300

Réel wipes out almost the whole result: €4,500 less to declare.

The same studio as an unclassified tourist let#

Let by the night, it brings in €14,000, with €5,000 of expenses (cleaning, linen, platform fees on top). Under micro-BIC, the allowance is only 30%: €4,200, so €9,800 taxable. Under réel, €14,000 − €5,000 − €6,100 of depreciation gives €2,900. This is where réel makes the biggest difference.

A small property with no loan#

A home bought for €48,000, a quarter of it land, furnished for €2,100. €9,600 of receipts, €1,000 of expenses, no loan left. Depreciation is only €1,200 for the building and €300 for the furniture: réel gives €7,100 taxable, against €4,800 under micro-BIC. The 50% flat allowance wins.

These figures are taxable results. The tax itself depends on your tax rate and social charges. To compare with your own figures, use our free LMNP micro-BIC or réel calculator.

What the result does not tell you#

Three things weigh beyond one year's comparison:

• the cost of réel: accounts, a 2031 and 2033 return every year, often an accountant. See our guide LMNP without an accountant;
• selling: since 15 February 2025, depreciation deducted under réel increases the taxable capital gain. Under micro-BIC, nothing is clawed back. See LMNP capital gains and depreciation clawback;
• time: building depreciation lasts decades, furniture depreciation a few years. The réel advantage shrinks once the furniture is depreciated and the loan repaid.

How to opt for réel#

The option for réel is made within the filing deadline of the previous year's income tax return. To be under réel for 2027 income, you therefore opt no later than the deadline of the return filed in spring 2027. In the year you start letting, you opt within the deadline of that first year's return (article 50-0, 4 of the CGI).

The option lasts one year and renews tacitly every year. You can give it up within the same deadline, unlike unfurnished lettings, where opting for réel binds you for three years.

In practice, the option is notified to the business tax office (SIE) responsible for the property.

Sources#

• Article 50-0 of the French tax code (micro-BIC and option), Légifrance
• Article 39 C of the French tax code (depreciation of let assets), Légifrance
• Furnished letting (location meublée), impots.gouv.fr
• Furnished letting: tax regime, service-public.gouv.fr

Last checked on 9 November 2026