24 May 2026
Furnished rental in Provence: micro-BIC or real tax regime in 2026?
Micro-BIC or real regime? Since the Le Meur Act, the tax rules for holiday rentals have changed significantly. What every second-home owner in the Pays d'Aix needs to know before renting this summer.
Renting out your second home in Provence this summer quickly raises a concrete question: under which tax regime should you declare this income? Since the Le Meur Act came into force on 1 January 2025, the rules have been significantly redrawn. Owners who previously benefited from the old micro-BIC allowances may find themselves in a very different tax situation — sometimes less favourable, sometimes more advantageous depending on the property's configuration.
Here is what you need to understand before renting, and how to choose the right regime for your situation.
LMNP status: who does it apply to?
Non-professional furnished rental status (LMNP) is the default for the vast majority of owners who rent their second home on an occasional basis. It applies as long as annual rental income remains below €23,000 or represents less than 50% of the household's professional income.
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Beyond these thresholds, you move into professional furnished rental status (LMP), which follows different rules — particularly regarding social contributions and the treatment of capital gains on resale.
For an owner of a villa or mas in the Pays d'Aix who rents for a few weeks a year, LMNP status almost always applies.
Micro-BIC or real regime: the main differences
Income from furnished rentals falls under industrial and commercial profits (BIC), not rental income. Two regimes are available:
The micro-BIC applies a flat-rate allowance to gross receipts. Simple to declare, it requires no accounts or supporting documents for expenses. Taxable profit is calculated automatically.
The real regime allows you to deduct all actual expenses (loan interest, land tax, insurance, management fees, renovation work, maintenance…) and to depreciate the value of the property and furniture. More complex to implement, it is often significantly more advantageous once the property generates substantial expenses.
What changed with the Le Meur Act in 2025-2026
The Le Meur Act no. 2024-1039 of 19 November 2024 introduced an important distinction between classified and non-classified furnished rentals, applicable from 1 January 2025:
| Property type | Micro-BIC ceiling | Allowance | |---|---|---| | Classified holiday rental (1 to 5 stars) | €77,700 | 50% | | Non-classified holiday rental | €15,000 | 30% |
For an owner whose property is not classified and who receives, say, €18,000 in annual rental income: the €15,000 micro-BIC threshold is exceeded, and the owner automatically switches to the real regime.
Another significant change since 2025: on resale, any depreciation deducted during the rental period is reintegrated into the capital gains calculation. This alters the long-term profitability calculation and should be anticipated with a tax adviser.
Which regime to choose for your situation?
There is no universal answer — it depends on your income level, the property's actual expenses, and your marginal tax bracket. Some benchmarks:
Micro-BIC remains relevant if your property is classified (50% allowance), if your income is modest, and if you have no significant expenses to deduct. It remains the simple option.
The real regime is compelling once your property generates significant actual expenses (management by a service provider, recent works, outstanding loan, pool or garden maintenance costs) or if your income exceeds €15,000 for a non-classified property. Depreciation of the property can bring taxable income to zero for several years.
The classification procedure is worth exploring for eligible properties: it restores a 50% allowance and raises the micro-BIC threshold to €77,700. The process is voluntary, involves a fee (audit by an accredited body), but can quickly pay for itself if rental income justifies it.
In all cases, the option for the real regime must be exercised before the income tax return filing deadline — it is therefore important to think about it at the start of the year, not after the fact.
Managing your second home rental with peace of mind
Tax is just one dimension of rental management. For owners who want to rent their property in the Pays d'Aix without making it a full-time activity, entrusting it to a seasonal rental service in Aix-en-Provence covers the entire process: property preparation, guest welcome, post-stay restoration, and administrative follow-up.
Would you like to estimate your second home's rental income potential and understand which tax regime applies to your situation? Contact us for an initial no-obligation conversation — we will connect you with the right local experts.