From 2025 income onwards, a reform nicknamed the “anti‑Airbnb” law will slash the generous micro‑BIC regime that boosted furnished holiday rentals, shifting the balance between seasonal lets and long‑term housing.
The quiet tax revolution targeting short‑term rentals
For years, running a holiday rental in France was a comfortable tax play. Under the micro‑BIC regime for non‑classified tourist rentals, owners could earn up to €77,700 a year while enjoying a 50% allowance on their gross rents. Only half their takings were taxed as income and social charges. That made a small seaside flat on Airbnb look far more attractive than a long‑term tenancy.
The Le Meur law, officially law no. 2024‑1039 and widely described as an “anti‑Airbnb” package, changes that equation. The French tax authority has now confirmed the timetable: the new rules will apply to income earned from 1 January 2025, and will hit tax bills filed in spring 2026.
From 2026, millions of European holiday‑let owners will discover that the golden age of ultra‑light taxation is over.
The political goal is clear: reduce the financial edge of short‑term rentals in hotspots where locals struggle to find housing, and nudge properties back toward year‑round tenancies.
What exactly disappears in 2026?
The reform does not scrap micro‑BIC altogether, but it tears away its most attractive features for many amateur hosts.
The old regime: a generous cushion
Up to 2024 income, non‑classified furnished tourist lets could rely on three key elements:
- Annual revenue ceiling for micro‑BIC: €77,700
- Flat allowance on gross rents: 50%
- Taxable base: only the remaining 50%, subject to income tax and social charges
For someone taking in €20,000 a year from a countryside gîte, the taxman only looked at €10,000. The rest was treated as deemed expenses, no questions asked, no receipts needed.
The new regime: thresholds divided by five
From 2025 income onward, non‑classified holiday rentals face two simultaneous cuts:
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| Rule | Until 2024 income | From 2025 income |
|---|---|---|
| Micro‑BIC ceiling (non‑classified tourist lets) | €77,700 | €15,000 |
| Flat allowance rate | 50% | 30% |
In other words, more landlords will be pushed out of micro‑BIC, and even those who remain will be taxed on a bigger slice of their rental income.
A landlord earning €20,000 a year may see their taxable base jump from €10,000 to €14,000, a steep rise in just one year.
The measure aligns non‑classified short‑term lets more closely with the treatment of unfurnished property under the micro‑foncier regime, which was historically less generous. The state is not hiding its intention: it wants seasonal lets to look less like an easy tax arbitrage and more like a standard rental activity.
Who is spared by the reform?
Not all landlords are affected in the same way. A crucial distinction lies between short‑term holiday lets and rentals serving as a tenant’s main home.
- Furnished rentals used as a tenant’s primary residence keep their existing micro‑BIC rules: €77,700 ceiling and 50% allowance.
- The clampdown clearly targets short stays booked via platforms such as Airbnb, Abritel, Booking.com and similar services when the accommodation is not officially classified as a “meublé de tourisme”.
That nuance matters for many owners who mix different rental strategies across several properties. A long‑term furnished lease remains on friendlier ground, while the weekend studio for tourists takes the hit.
Turning to LMNP real regime: a new normal for serious hosts
For landlords in the non‑professional furnished rental category (LMNP), accountants broadly agree: the real tax regime will become the default option for most who earn more than €15,000 a year from short‑term lets.
How the real regime works
Unlike the simple flat allowance, the real regime requires full bookkeeping. In exchange, it allows you to deduct actual expenses, such as:
- Mortgage interest
- Property tax and local charges
- Agency fees and management costs
- Repairs, maintenance and some improvement works
- Insurance, utilities and internet bills
On top of that, landlords can depreciate the property and its furniture over time. This “amortisation” is an accounting charge that does not involve real cash going out, but still reduces the taxable profit each year.
With amortisation, many LMNP landlords can legally show little or no taxable profit for several years, even with solid rental income.
The catch is administrative: going real regime almost always means using an accountant, learning basic business rules, and treating the rental like a small company rather than a side hustle.
Getting classified as a tourist rental: a potential workaround
Another option gaining attention is to seek official “meublé de tourisme” classification. When a property meets specified comfort and equipment standards and passes inspection by an authorised body, the tax treatment can stay more favourable than for non‑classified lets.
For classified tourist accommodation, the micro‑BIC regime remains closer to the old model, with a higher allowance and a more generous revenue ceiling. That said, owners must invest in meeting standards, keep up with local rules and continue monitoring profitability once the initial tax advantage is locked in.
Local councils in popular tourist regions are also tightening planning rules and declaring certain zones “tense”, where short‑term activity can be capped or heavily regulated. A classification does not shield owners from those urban planning tools.
Practical scenarios: what changes on a typical tax bill?
A €20,000‑a‑year host before and after the reform
Take an owner of a non‑classified coastal flat earning €20,000 in gross annual rents:
- Until 2024 income (micro‑BIC 50%): taxable base = €10,000.
- From 2025 income (micro‑BIC 30%): taxable base = €14,000, if they stay in micro‑BIC and do not exceed the new €15,000 ceiling.
- Above €15,000: they must or will very likely switch to the real regime, where their taxable profit will depend on real charges and amortisation.
For a landlord in a middle income bracket, that extra €4,000 of taxable income can easily translate into several hundred euros of additional tax and social contributions per year.
When the real regime wins on paper
Now picture a landlord with strong costs: a recent mortgage, high interest, substantial renovation works and expensive furniture. Under micro‑BIC, those outlays are ignored and replaced by the flat percentage allowance. Under the real regime, they are fully recognised.
In the early years of a leveraged purchase, the combination of interest and amortisation can compress the taxable profit to zero or close to it. For these profiles, the end of the old micro‑BIC generosity is less dramatic, because switching to the real regime might actually bring a smaller tax bill than the former 50% flat allowance.
Key notions worth understanding
Two technical concepts sit at the heart of the 2026 change.
Micro‑BIC is a simplified tax system for small business and rental income. Instead of tracking every receipt, the state assumes a fixed percentage of your revenue represents costs. It is simple, but becomes less attractive when the assumed percentage shrinks from 50% to 30%.
Amortisation in LMNP real regime is the opposite approach. The landlord spreads the cost of the property and furniture over many years, deducting a portion each year as if the asset were slowly wearing out. That accounting charge is often the main reason experienced hosts move away from micro‑BIC, especially under the new, tighter rules.
For owners juggling several properties, combining regimes can be strategic: a long‑term furnished flat might stay in micro‑BIC for simplicity, while a high‑yield city‑centre Airbnb shifts to real regime to take full advantage of amortisation and heavy costs.
These choices are rarely obvious without running numbers. With the Le Meur law reshaping returns from 2026, many landlords will find that their once‑comfortable “set and forget” tax setup on short‑term rentals now needs a careful review, scenario testing and, in many cases, a complete change of strategy.
Originally posted 2026-03-05 01:48:39.