Compare tax regimes

The LMNP real regime is the most advantageous in the vast majority of cases. It allows you to deduct all actual expenses (interest, insurance, management) and, most importantly, to depreciate the property and furniture, which reduces taxable income to zero for the first several years. Micro-BIC (50% allowance) is only worthwhile if your actual expenses are low.

Micro-BIC applies to furnished rental (LMNP) and offers a flat 50% deduction on rental income, capped at €77,700/year. Micro-foncier applies to unfurnished rental and offers a 30% deduction, capped at €15,000/year in rent. Beyond these thresholds, or if your actual expenses are high, the real regime is more advantageous.

Yes, you can switch from micro to real regime by sending a registered letter to the tax office before the filing deadline. The change takes effect for the current year. However, switching from real to micro is subject to stricter conditions and requires a minimum two-year commitment to the real regime.