Good news for medium-term rentals: unlike short-term rentals, they are not affected by the Le Meur law. But the choice between micro-BIC and the actual-cost regime remains decisive for your profitability. Here is how to pay the right amount of tax on your furnished rental in 2026.
Medium-term = classic furnished rental
Medium-term rental (via a civil lease or mobility lease, furnished) falls under classic furnished rental, not tourist accommodation. The key consequence: it is not affected by the Le Meur law that tightened short-term taxation. Your rent is taxed as BIC, with two possible regimes: micro-BIC or actual-cost.
The LMNP status
Most owners fall under the Non-Professional Furnished Lessor (LMNP) status. It applies as long as your rental income stays below €23,000/year or does not exceed your household's other income. Beyond both conditions, you move into Professional Furnished Lessor (LMP) status, with a different social regime.
Micro-BIC: simple but limited
Micro-BIC applies automatically under the cap. For classic furnished rentals (long and medium-term), it remained unchanged in 2026:
- Flat 50% allowance on income
- €77,700 cap on annual income
- No expenses to justify, a single box to fill in
Its advantage is simplicity. Its drawback: the 50% allowance is often lower than your real expenses, especially if you have an outstanding loan.
Actual-cost regime: the power of depreciation
The actual-cost regime lets you deduct all your real expenses (loan interest, property tax, insurance, management fees, works, accounting) and depreciate the property — that is, deduct each year a fraction of its value (excluding land) and of the furniture.
Thanks to depreciation, many owners under the actual-cost regime pay near-zero tax on their rent for 8 to 10 years, sometimes longer.
Micro-BIC or actual-cost: how to choose?
| Criterion | Micro-BIC | Actual-cost |
|---|---|---|
| Allowance / deduction | Flat 50% | Real expenses + depreciation |
| Income cap | €77,700 | None |
| Accounting | None | Tax return (accountant advised) |
| Best if… | Expenses < 50% of rent | Expenses + depreciation > 50% of rent |
Simple rule: as soon as your expenses and depreciation exceed 50% of your income — almost always the case for a Parisian property with a loan — the actual-cost regime wins. Accounting fees (€400 to €600/year for a specialised firm) are themselves deductible.
Worked example (furnished, €18,000 rent/year)
| Regime | Calculation | Taxable base |
|---|---|---|
| Micro-BIC | €18,000 − 50% | €9,000 |
| Actual-cost | €18,000 − expenses − depreciation | often €0 to €3,000 |
Indicative estimate — the result depends on your loan, the value of the property and your real expenses.
Points to watch
- Mandatory registration: declare your activity to obtain a SIRET number (free, via INPI), whether on micro or actual-cost.
- Capital gains on resale: depreciation deducted is now added back into the capital-gains calculation. The trade-off is a long-term one.
- Social levies: 18.6% on taxable income under LMNP.
- LMP threshold: above €23,000 of income AND if it exceeds your household's other income, your status changes.
⚠️ Have your figures checked by an accountant
This information is provided for guidance only and does not constitute personalised tax advice. The choice of regime and the depreciation calculation must be validated by a chartered accountant specialised in furnished rentals, based on your situation.
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