What is a furnished rental or meublé de tourisme?
Definition of a furnished rental :
A furnished rental refers to the letting of a property that is provided with an adequate set of furniture, enabling the tenant to live comfortably on a daily basis.
A furnished rental can be a primary or secondary residence.
Definition of a meublé de tourisme :
In accordance with the French Tourism Code, a meublé de tourisme is an already-furnished residential property that you plan to rent to travelers for short periods. These accommodations are intended exclusively for the use of temporary tenants.
Furnished tourist accommodation can be a primary or secondary residence.
What is the difference between a furnished rental and a furnished holiday home?
Key features:
In a furnished rental, the tenant can choose the property as his or her primary or secondary residence, with no time constraints.
In a meublé de tourisme, on the other hand, the tenant does not establish the property as his or her principal residence, and it is intended for a transient clientele. The rental period may not exceed 90 consecutive days for any one person.
One of the main differences between a furnished rental and a meublé de tourisme is that the classification of a meublé de tourisme offers tax advantages to owners.
The tax framework
For tax purposes, there is no distinction between a furnished rental and a furnished holiday home. Income from such rentals is taxed as industrial and commercial profits (BIC).
However, two tax regimes are available: the micro-BIC regime and the actual regime.
The micro-BIC scheme for furnished rentals and furnished tourist accommodation: This scheme applies when rental income (excluding taxes) does not exceed €72,600. It provides a flat-rate allowance of 50% on revenues, while the other half remains taxable. Above this threshold, the actual tax system applies.
Actual income tax regime for furnished rental and furnished tourist accommodation: Unlike the micro-BIC regime, this regime does not offer a flat-rate allowance, but does allow for the deduction of expenses and depreciation. More complex than the micro-BIC system, it is advisable to call on the services of a chartered accountant, as it requires the keeping of a receipts and purchases ledger.
The special feature of a classified meublé de tourisme: Another difference between a furnished rental and a meublé de tourisme is the possibility of classifying the latter. Most meublés de tourisme are generally unclassified, but it is possible to choose to classify your meublé in an existing category. From a tax point of view, classification can lead to a reduction in taxable income up to a flat rate of 71%, if pre-tax income does not exceed €176,200.
The "meublés de tourisme" category encompasses various types of accommodation, such as furnished houses (including vacation homes), villas, apartments and studios. It's important to note that bed & breakfasts or private rooms are not considered furnished accommodation.
