Good news for medium-term rental: unlike holiday lets, it is not affected by the Le Meur law. But the choice between micro-BIC and the actual-expenses regime remains decisive for your returns. Here is how to pay the right amount of tax on your furnished letting in 2026.
Medium-term = standard furnished letting
Medium-term rental (under a civil or mobility lease, furnished) falls under standard furnished letting, not furnished tourist lets. The key consequence: it is not affected by the Le Meur law , which tightened the taxation of short-term rental. Your rent is taxed as BIC, with two possible regimes: micro-BIC or actual expenses.
LMNP status
Most owners fall under the status of non-professional furnished landlord (LMNP). It applies as long as your rental revenue stays below €23,000 a year or does not exceed your household's other income. If both conditions are exceeded, you become a professional furnished landlord (LMP), with a different social-security regime.
Micro-BIC: simple but limited
Micro-BIC applies automatically below the ceiling. For standard furnished letting (long and medium term), it has remained unchanged in 2026:
- 50% flat-rate allowance on revenue
- €77,700 ceiling of annual revenue
- No expenses to justify, just one box to fill in
Its advantage is simplicity. Its drawback: the 50% allowance is often lower than your actual expenses, especially if you have a loan.
Actual expenses: the depreciation weapon
The actual-expenses regime lets you deduct all your actual expenses (loan interest, property tax, insurance, management fees, works, accounting) and depreciate the property — in other words, deduct a fraction of its value (excluding land) and of the furniture every year.
Thanks to depreciation, many owners under the actual-expenses regime pay close to zero tax on their rent for 8 to 10 years, or even longer.
Micro-BIC or actual expenses: how to choose?
| Criterion | Micro-BIC | Actual-expenses regime |
|---|---|---|
| Allowance / deduction | 50% flat rate | Actual expenses + depreciation |
| Revenue ceiling | €77,700 | None |
| Accounting | None | Tax return package (chartered accountant recommended) |
| Ideal if… | Expenses < 50% of rent | Expenses + depreciation > 50% of rent |
A simple rule: as soon as your expenses and depreciation exceed 50% of your revenue — which is almost always the case for a Paris property with a loan — the actual-expenses regime wins. Accounting fees (€400 to €600 a year with a specialist firm) are themselves deductible.
Worked example (furnished, €18,000 of rent a year)
| Regime | Calculation | Taxable base |
|---|---|---|
| Micro-BIC | €18,000 − 50% | €9,000 |
| Actual-expenses regime | €18,000 − expenses − depreciation | often €0 to €3,000 |
Indicative estimate — the result depends on your loan, the value of the property and your actual expenses.
Points to watch
- Mandatory registration: declare your activity to obtain a SIRET number (free, via the INPI), whether you are under micro-BIC or actual expenses.
- Capital gain on resale: the depreciation deducted is now added back when calculating the capital gain. The decision must be considered over the long term.
- Social levies: 18.6% on taxable income as an LMNP.
- LMP threshold: above €23,000 of revenue 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 specialising in furnished lettings, based on your situation.
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