Special ‘micro’ regimes

For simplification, systems have evolved for some income kinds such as from property rentals or operating a small business.

Income ceilings apply to qualify for these and in the case of an existing business, the income of the preceding year is looked at to see if the benefit can be maintained into the next year. It is allowed that you may exceed the ceiling for one year if income drops back into the relevant level the year afterwards.

These regimes involve a set expenses deduction and are an alternative to more complex réel (real expenses) methods.

You declare gross turnover and tax officials apply the deduction.

The remainder is taxed under the usual bands.

Rules with regard to furnished short-term holiday rental (including gîtes) have changed in recent years (see chapter 1 of this guide for more about this in the section ‘What is new in 2026?'). 

Micro-Bic / Micro-BNC:

These are for small firms and some income from furnished property rentals.

They are called micro as they minimise formalities.

The set amount for expenses varies by sector.

Small businesses set up this way are called micro-entreprises and do not have to prepare or submit accounts (this does not mean book-keeping is not required).

It includes auto-entrepreneurs, an older term that is still widely used.

Turnover ceilings to benefit

For 2025 income

Turnover ceilings for 2025 income were €188,700 for work involving buying and selling; €77,700 for income types including professions libérales, services, long-term furnished rental and classified (star rated) furnished holiday rentals and chambres d’hôtes and €15,000 for unclassified furnished holiday rentals.

For 2026 income 

Turnover (excluding tax) ceilings for 2026 income are €203,100 for work involving buying and selling; €83,600 for income types including professions libérales, services, long-term furnished rental; chambres d’hôtes and classified holiday rentals; and €15,000 for unclassified holiday rentals.

There are two micro categories:

Micro-Bic (Bic = bénéfices industriels et commerciaux): For firms involved in buying and selling and furnished rentals.

The turnover benefits from the following set expenses deductions (applied by the tax office):

71% for most commercial (buying and selling) businesses

50% for chambres d’hôtes and classified holiday rentals 

30% for unclassified holiday rentals

Micro-BNC is for ‘non-commercial’ activity, such as professions; 34% is deducted for expenses.

Micro-entreprises may instead (subject to specific, fairly low, income thresholds) opt for a form of income tax called versement libératoire with tax in this case being paid on turnover (with no deduction) monthly or quarterly, at:

1% for sales 

1.7% services and most forms of furnished accommodation provision

2.2% for BNC.

They also pay business social cotisations on turnover at set rates depending on the sector in the same way.

Micro-foncier

Is a simple tax regime for unfurnished rentals and land income up to €15,000 a year.

Foncier means relating to real estate.

You declare the gross income and 30% is deducted for expenses, meaning only 70% is taxed.