French unfurnished rental income

This is the section to declare income from rents of land and unfurnished property where no services are provided and where this income is under €15,000 (unless you wish to opt for the réel tax system instead).

You should select micro-foncier in the online rubriques.

Enter the income at: 2042 section 4

If entitled to the micro-foncier taxation method income is declared gross in box 4BE in section 4.

If, however, the total unfurnished rental income is above €15,000 then the 2044 form will need to be completed and the total profit transferred back to 2042 box 4BA (the following boxes also apply to the calculation of tax on this kind of income, such as deficits to offset against it).

French income from furnished rental and some other small businesses

If you have income of this kind select the relevant rubriques at the start to obtain the boxes eg. revenus industriels et commerciaux non-professionnels, or micro-entrepreneur ayant opté pour le versement libératoire, revenus des locations meublées non-professionnelles etc.

If using paper, these boxes are on the 2042C PRO.

This section will not give exhaustive information on how to declare income from full-time professional businesses, especially where declared under the réel (real expenses) system, which in any case usually requires the assistance of an accountant to declare fully. However, we will look in particular at how common kinds of micro-entreprise self-employment income are declared as well as income from small-scale furnished rentals. 

France considers the activity of furnished rental to be commercial, hence enabling the income to fall under the micro-BIC category. However, such income is not necessarily also seen as being ‘professional’ in nature. Please read the previous section on ‘How to declare French rental income’ for more about this and a fuller explanation of other considerations with regard to furnished rental.

If the income is to be split between a couple, then half of the total income is typically declared for each partner.

The micro (simplified taxation) system is also available to small businesses as described in the section ‘Special micro regimes’. Services are limited to an income ceiling of €77,700 while commercial sales businesses are limited to €188,700.

If declared under the micro system, income received is declared gross and the tax office will account for the relevant abatements to cover the expenses. 

It should be declared in the following boxes (on paper, on 2042C PRO):

Professional sales and related commercial activities 5KO/5LO and non-professional sales/commerce (mainly where it is a side activity) 5NO/5OO

Professional services 5KP/5LP and non-professional services 5NP/5OP

Non-professional furnished rental income is usually declared on 2042C PRO, page 5 and professional furnished rental income on page 3.

This area has been subject to frequent changes in recent years, however recently-updated information at impots.gouv.fr provides the following guidelines for declaring 2025 income:

Ordinary long-term furnished rental: 5NI/5OI

Unclassified holiday rental: 5NH/5OH

Chambres d’hôtes and classified furnished holiday rentals 5NG/5OG

Note: Although running a chambre d’hôtes will usually meet the criteria to be considered a parahôtellerie activity for business set-up purposes, incomes are typically declared for tax in the section for non-professional furnished rental income, as long as the criteria to be a professional furnished accommodation landlord (LMP) are not also met.

If incomes are in excess of the micro thresholds, they need to be declared in alternative boxes for the régime réel and also have to be declared on form 2031. Completion of this normally requires accounts and so it should probably be managed by an accountant.

Note that you can opt out – or in – of the micro regime if you choose to but a request has to be made to the tax office before certain cut-off dates.

There are specific rules relating to an SCI (société civile immobilière) with regard to furnished rentals and liability to corporation tax. You may wish to take professional advice.

However an SCI can rent property out unfurnished to another entity. This could either be the shareholders as private individuals or a business. Either of these could then offer furnished rentals.

Micro-entrepreneurs, including those known informally as auto-entrepreneurs, who opted for the versement libératoire (fixed-rate income tax) need to declare their income in specific boxes, with income from sales going in boxes 5TA and 5UA, services and furnished rentals in 5TB and 5UB and non-commercial activities in 5TE and 5UE.

This is not so you will be taxed on it again but so as to calculate your revenu fiscal de référence and the correct income tax bands for other household income.