French budget law 2024: Impact on the rental of furnished holiday homes
by Febe Louage and Matthieu Van Gucht
The French Budget Law for 2024, recently approved by the government, introduces significant changes for Belgians who own and rent out property in France. In particular, the tax system for the rental of furnished holiday accommodations is undergoing a major reform.
What is a furnished holiday home?
A furnished holiday home refers to a furnished villa, apartment, or studio that is rented out for the exclusive use of the tenant, rented to visiting clients who do not reside there permanently and rent the accommodation on a daily, weekly or monthly basis.
What are the obligations?
In addition to obtaining a SIRET number, every furnished tourist accommodation — whether classified or not — must be registered with the local municipality. In some municipalities, this registration may also require an official registration number.
Taxation for the 2023 tax year
For income tax purposes, it is possible under certain conditions to benefit from the 'micro' tax regime. This regime offers simplified annual obligations and does not require formal bookkeeping, as deductible expenses are calculated on a flat-rate basis.
To qualify for the micro regime, your annual rental income must not exceed a certain threshold. These thresholds vary depending on whether your property is classified. Classification also determines the applicable flat-rate deduction percentage. The table below provides an overview of the income limits and corresponding deduction rates:
| Unclassified accommodation | Classified accommodation | |
|---|---|---|
Annual income treshold | € 77 000 | € 188 700 |
Fixed cost allowance | 50% | 71% |
If your rental income exceeds these thresholds, you are no longer eligible for the micro regime and will be subject to the 'régime réel', which requires a full accounting of income and expenses.
What changes for the 2024 tax year?
The 2024 budget law provides for a reduction in both the income thresholds and the flat-rate deduction, effective from the 2023 income year. This was approved by the French parliament on Monday, 29 January 2024. However, the Le Meur law has now decided that these changes will only take effect from January 1, 2025.
| Unclassified accommodation | Classified accommodation & bed and breakfasts | |
|---|---|---|
Annual income treshold | € 15 000 | € 77 700 |
Fixed cost allowance | 30% | 50% |
For any questions regarding furnished holiday rentals, you can always contact our experts. They will be happy to assist you!
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Febe Louage
Manager International febe.louage@vdl.be
Matthieu Van Gucht
Team Manager Accountancy matthieu.vangucht@vandelanotte.fr
Disclaimer
In our opinions, we rely on current legislation, interpretations and legal doctrine. This does not prevent the administration from disputing them or from changing existing interpretations.
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