The taxation of holiday lets changed profoundly with the Le Meur law of 19 November 2024. Reduced allowances, lower ceilings, a switch to the actual-expenses regime for many owners: here is what every owner of a furnished tourist let in Paris needs to understand for their 2025 and 2026 income.
Holiday lets: which tax regime?
Holiday lets (Airbnb, Booking, Abritel…) fall under the status of furnished tourist let (meublé de tourisme): a home let to short-stay guests who do not make it their home. The rent received is taxed as Industrial and Commercial Profits (BIC), not as property income. There are two regimes: the micro-BIC (flat-rate) regime and the actual-expenses regime.
What the Le Meur law changes
The law of 19 November 2024, nicknamed the "anti-Airbnb law", reduced the micro-BIC benefits for furnished tourist lets. These changes apply from 2025 income, declared in spring 2026.
| Type of property | Before the reform | Since the Le Meur law |
|---|---|---|
| Furnished tourist let not classified | 50% allowance · €77,700 ceiling | Allowance 30% · ceiling €15,000 |
| Furnished tourist let classified (1 to 5 stars) | 71% allowance · €188,700 ceiling | Allowance 50% · ceiling €77,700 |
Above these ceilings, the actual-expenses regime becomes mandatory. In practice, an unclassified furnished let that generates more than €15,000 of revenue a year automatically switches to the actual-expenses regime — a threshold quickly reached with a single well-located property in Paris.
Classified or not: a choice that has become a tax decision
Star classification, once optional, has become a real tax shield. For €150 to €400 in inspection fees (by a Cofrac-accredited body, valid for 5 years), you multiply your micro-BIC ceiling by five (from €15,000 to €77,700) and your allowance rises from 30% to 50%.
For an owner with significant revenue, the annual tax gain from classification can exceed several thousand euros. It is now an economic decision before being a commercial one.
Micro-BIC or actual expenses: a worked example
Take an unclassified studio in Paris generating €20,000 of annual revenue.
| Regime | Calculation | Taxable base |
|---|---|---|
| Micro-BIC | €15,000 ceiling exceeded → not eligible | — |
| Actual-expenses regime (mandatory) | Revenue − actual expenses − depreciation | Often close to €0 |
The actual-expenses regime lets you deduct real costs (loan interest, property tax, platform commissions, management fees, insurance, accounting) and depreciate the property. For an owner with a loan or high costs, it often results in very low tax, or even none for several years.
Other obligations in Paris
- A cap of 120 nights a year for letting your main residence (some municipalities can lower it to 90).
- Mandatory declaration at the town hall and a 13-digit registration number on every listing.
- Change of use required for a second home let short term in Paris, with possible compensation.
- Tourist tax collected on behalf of the City.
- CFE (business property tax) due from €5,000 of turnover.
Social contributions and resale
As an LMNP, your income is subject to social levies (18.6%). If your short-term revenue exceeds €23,000 a year, you move to self-employed social contributions. A new and important point: since the reform, the depreciation deducted is added back when calculating the capital gain on resale — which can increase the tax bill on exit. The decision must therefore be considered over the long term.
⚠️ Have your figures checked by an accountant
The taxation of furnished lettings changes quickly and every situation is unique. The information above is provided for information only and does not constitute personalised tax advice. Before any decision, have your strategy confirmed by a chartered accountant specialising in furnished lettings.
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