How to Declare Rental Income from a Furnished Property in France in 2025? ?

If you own a furnished property for rental purposes (whether for long-term or short-term rentals), you are classified as a Non-Professional Furnished Rental Operator (LMNP) or, under specific conditions, as a Professional Furnished Rental Operator (LMP).

 

As such, you are required to declare the rental income generated from your furnished rental activity. But how exactly should you do this? Let’s take a closer look.

You’ll discover 👇

Revenus fonciers

Before Declaring Your Furnished Rental Income

 

Before you can declare your furnished rental income, you must have already registered your rental activity with the tax authorities. If you haven’t done so yet, follow the procedure explained here, with Qlower’s support.

Since furnished rental activity is considered a small business, you are assigned a SIRET number, just like a business, when you register. As part of this process, you will need to choose a tax regime:

  • Real Taxation (BIC réel)
  • Simplified Micro-Regime (BIC micro)
 
 

BIC stands for “Bénéfices Industriels et Commerciaux” (Industrial and Commercial Profits), as this rental income is treated similarly to business income.

Choosing Between the Two Tax Regimes

 

  • Micro BIC (Flat-Rate Tax Regime): This simplifies the tax declaration process by automatically applying a 50% deduction on rental income, making the declaration quick and easy. However, this is rarely the most tax-efficient choice.
  • BIC Réel (Actual Tax Regime): Allows landlords to deduct all expenses and charges, including the depreciation of the property, furniture, and equipment. This method can often eliminate property taxes altogether but requires more detailed accounting.

     

Most investors opt for the BIC Réel regime as it generally maximizes tax benefits. However, it is closely monitored by tax authorities and may undergo future changes.

If you stick with the same tax regime (either real or micro), no additional action is required. However, if you choose to switch from one regime to another (usually from Micro BIC to BIC Réel), you must follow specific procedures.

Declaring Furnished Rental Income Under the Micro BIC Regime

Declaring rental income under the Micro BIC regime is very straightforward:

  1. Calculate the total rental income for the past year (including rental charges).
  2.  
  3. Divide the total by two—this 50% deduction represents taxable income.
  4. Report this amount on Form 2042 C PRO.
  5.  

This regime requires only two documents:

  • Form 2042: General annual income declaration.
  • Form 2042 C PRO: Dedicated to additional business income such as furnished rentals.
  •  

Qlower automatically calculates the amount for easy reporting.

This process is more complex as it involves detailed accounting, but it significantly reduces taxable income and is often the most beneficial tax regime for landlords.

Key Steps in the BIC Réel Declaration Process

 
1. Calculating Rental Income

Simply sum up all rental income for the year, including service charges.

2. Deducting Expenses

This step is critical to optimize tax savings. The goal is to maximize deductible expenses to offset rental income over multiple years.

There is no official list of deductible expenses, but common deductions include:

  • Mortgage interest
  • Property insurance
  • Maintenance and repair costs
  • Property tax
  • Management fees
  •  

Tax authorities scrutinize deductions carefully, and errors can lead to tax adjustments.

3. Applying Property Depreciation

A major advantage of BIC Réel is the ability to depreciate the property and furniture over time.

Example:

  • If a property costs €100,000, applying a 2.5% depreciation rate allows a deduction of €2,500 per year.
  • This significantly reduces taxable income and, in many cases, eliminates taxes altogether.
 
4. Filing the BIC Réel Tax Declaration

The furnished rental tax return (Cerfa 2031) includes several annexes:

  • Simplified balance sheet (2033-A): A financial snapshot of rental activity.
  • Income statement (2033-B): Calculates the final profit or loss.
  • Depreciation and fixed assets table (2033-C): Lists depreciated properties and assets.
  •  

These must be submitted online via the Professional Tax Portal (impots.gouv.fr) before the end of April each year.

 


Key Documents for the BIC Réel Tax Return

 

📌 Balance Sheet (2033-A): Summarizes the rental activity, including assets, debts, income, expenses, and cash flow.
📌 Income Statement (2033-B): Determines the net taxable result (profit or loss).
📌 Depreciation Table (2033-C): Lists real estate assets and furniture that are depreciated over time (for items valued above €600).

These forms must follow strict accounting rules and can be completed independently, by an accountant, or via Qlower.

How to Report the Final Rental Income to Personal Taxes

After completing the BIC Réel declaration, you must report the final result on Form 2042 C PRO:

  • If the result is positive, this amount is taxed at your personal income tax rate.
  • If the result is negative, the amount is reported as zero (it cannot be deducted from overall taxable income but can be carried forward to future rental income).
  •  

Simplified Online Tax Filing for Furnished Rentals

 

French tax authorities are making tax reporting easier, with:

  • Pre-filled declarations for most taxpayers.
  • Generalized e-filing (previously reserved for accounting firms).
  • A move away from traditional paper forms (Cerfa) towards online forms.

Qlower adapts to this digitalization by providing:

  • Pre-filled tax forms.
  • Guidance for autonomous tax filing.
  • Step-by-step assistance to ensure accurate tax declarations.

Important Tax Deadlines

The deadline for declaring 2024 rental income (BIC) is the end of April 2025.

Given the tight schedule, Qlower recommends preparing tax declarations well in advance. Late requests for assistance may result in additional fees due to urgency.

Conseil Qlower

Ultimately, you have the choice of tax regime.

📌 Qlower helps you simulate different tax options to determine the most advantageous for your situation.
📌 We simplify every step of the tax declaration process and provide clear, structured guidance to ensure compliance.

By following these steps, you can optimize your tax position while ensuring a smooth and accurate declaration process.

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Note 🤠

There is an ongoing debate about whether this declaration is necessary if the newly added apartment is located within the same building as the reference establishment. However, when it comes to taxation, it is always better to err on the side of caution rather than risk under-reporting. This way, in the event of a tax audit, no accusations of bad faith can be made against you.

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