Is furnished letting more tax-efficient?

Often yes while letting, thanks to depreciation under the actual regime, which reduces the taxable profit. Since 2025, however, this depreciation is reintegrated into the capital gain on resale: the benefit is partly deferred. Weigh it against your holding horizon.

What allowance applies under micro-BIC for a furnished let?

For a standard long-term furnished let, the flat allowance is 50%. Unclassified tourist furnished lets get a reduced allowance and threshold.

Do I need a specific lease for a furnished let?

Yes: a furnished primary-residence lease runs, as a rule, for 1 year (9 months for a student), and the home must include the furniture and equipment set by decree.

Furnished letting and LMNP: tax, regimes and depreciation

Updated on August 25, 2026 · 7 min read

Letting a furnished home follows a different tax path from an unfurnished let: rent is taxed as bénéfices industriels et commerciaux (BIC, industrial & commercial profits), most often under loueur meublé non professionnel (LMNP, non-professional furnished landlord) status. Two regimes are open to the landlord, with a lever unique to furnished lets: amortissement (depreciation).

LMNP status and BIC income

For a furnished let, rent is not property income but bénéfices industriels et commerciaux (BIC, industrial & commercial profits). The private landlord falls, as a rule, under loueur meublé non professionnel (LMNP) status.

Loueur meublé professionnel (LMP, professional furnished landlord) status applies when annual receipts exceed €23,000 and outweigh the household’s other earned income. LMNP remains the usual case for a private landlord.

The micro-BIC regime

Micro-BIC applies below a receipts threshold and grants a flat allowance: 50% for a standard long-term furnished let. No expense is itemised — the allowance is deemed to cover them.

Unclassified tourist furnished lets fall under a tighter regime (reduced allowance and threshold). Check your let’s category before choosing your regime.

The actual regime and depreciation

Under the actual regime, the landlord deducts expenses at their real amount and, above all, applies amortissement (depreciation) to the property and furnishings: a fraction of their value is deducted each year. This depreciation, unique to furnished lets, strongly reduces — or even cancels — the taxable profit.

This regime requires rigorous bookkeeping; it quickly becomes more advantageous than micro-BIC once expenses and depreciation exceed the flat allowance.

One caveat: since the loi de finances 2025 (2025 finance act), depreciation deducted while letting is reintegrated into the plus-value (capital gain) calculation on resale of the property. The benefit of depreciation is therefore partly deferred — you save tax each year, but the taxable capital gain on exit is higher. A point to factor into your holding horizon.

Furnished or unfurnished: which to choose?

Furnished letting often brings a gentler tax treatment (depreciation) and more flexible leases (1 year, or 9 months for a student), but requires a home equipped with a minimum list of furniture and involves higher turnover. The choice depends on your property, your horizon and your appetite for management.

Frequently asked questions

Is furnished letting more tax-efficient?: Often yes while letting, thanks to depreciation under the actual regime, which reduces the taxable profit. Since 2025, however, this depreciation is reintegrated into the capital gain on resale: the benefit is partly deferred. Weigh it against your holding horizon.
What allowance applies under micro-BIC for a furnished let?: For a standard long-term furnished let, the flat allowance is 50%. Unclassified tourist furnished lets get a reduced allowance and threshold.
Do I need a specific lease for a furnished let?: Yes: a furnished primary-residence lease runs, as a rule, for 1 year (9 months for a student), and the home must include the furniture and equipment set by decree.