Letting an apartment short term on the French Riviera, or thinking about it, and wondering how your income will be taxed? In the vast majority of cases, LMNP status (Loueur en Meublé Non Professionnel, non-professional furnished letting) is the tax framework that applies. It offers real ways to reduce your tax, as long as you understand how it works and choose the right regime.
This article explains in plain English what LMNP is, how the micro-BIC (flat-rate allowance scheme) differs from the régime réel (actual expenses regime), how depreciation works and where social security contributions come in. It is not meant to replace your chartered accountant (expert-comptable); in fact, we will keep sending you back to them for exact figures. The aim is to give you the right bearings for that conversation. With holiday lets, the tax regime you choose can make a big difference to your net income.
Important: the tax rules on furnished lettings change regularly (thresholds, rates, allowances and the conditions for the status can shift from one year to the next). We have deliberately left out precise figures. Before making any decision, check the current amounts and conditions with your accountant and the French tax authorities.
What is LMNP status?
LMNP is the tax status for an individual who lets one or more furnished properties without it being their main professional activity. Income from furnished lettings is not treated as property income (revenus fonciers), as it is for unfurnished lettings, but as industrial and commercial profits (Bénéfices Industriels et Commerciaux, BIC). That distinction changes everything: it brings its own accounting and tax rules, which are generally more favourable than those for unfurnished lettings.
To qualify for LMNP, two main conditions apply: the property must be furnished (with everything the occupant needs to live there normally) and the activity must be non-professional, which depends mainly on your rental income and how much of your household income it represents. If these conditions are no longer met, you move to professional furnished letting status (Loueur en Meublé Professionnel, LMP), which has a different regime. The thresholds that mark this line can change, so ask your accountant to confirm them.
Does holiday letting come under LMNP?
Yes. Letting furnished tourist accommodation (meublé de tourisme) short term to passing guests, typically via Airbnb, Booking or direct, counts as furnished letting. It therefore falls under the BIC regime and, for an individual, usually under LMNP status. Whether you let a studio in Nice, a one-bedroom apartment in Antibes or an apartment in Cannes, the tax principles are the same.
One point to watch: furnished tourist accommodation and “conventional” furnished lets (on an annual lease, under a bail mobilité, the French furnished mobility lease of 1 to 10 months, etc.) can be treated differently on some tax points, and the official classification (classement) of your furnished tourist accommodation can affect which regime applies. Again, check these points carefully with a professional, as they determine the allowances and ceilings you can claim.
Micro-BIC or régime réel: two very different approaches
At the heart of LMNP taxation is a choice: the micro-BIC or the régime réel. This is not an administrative detail. It is a strategic decision that determines how much tax you pay, and the two regimes work in completely different ways.
The micro-BIC: simplicity
The micro-BIC is the simplified regime. You declare all your rental income and the tax authorities apply a flat-rate allowance meant to cover your expenses. You are then taxed on what is left. There are no actual expenses to prove and no detailed accounts to keep: that is its great strength.
The downside: the allowance is fixed, however much you actually spend. If your real expenses (loan interest, works, management fees, furnishing, etc.) exceed it, you pay “too much” tax for your actual situation. The micro-BIC is also only available below a certain level of income, and the allowance rate can differ depending on whether the furnished tourist accommodation is classified. The exact thresholds and allowances change: ask your accountant for them.
The régime réel: optimisation
The régime réel works the other way round: you deduct your actual expenses, to the euro, and above all you can claim depreciation (amortissement) on the property and its furniture. You are taxed only on the net profit left after all these deductions. The trade-off is that it requires rigorous accounts, usually kept by an accountant.
Deductible expenses under the régime réel include loan interest, insurance premiums, management and holiday rental management fees, maintenance and repairs, property tax (taxe foncière), building service charges (charges de copropriété), accountancy fees and acquisition costs. For holiday lets, this is often the regime that saves the most tax, especially when the property is bought with a loan or has needed work.
| Criterion | Micro-BIC | Régime réel |
|---|---|---|
| Principle | Flat-rate allowance on receipts | Actual expenses + depreciation |
| Accounting | Very simple, declare only | Detailed (accountant advised) |
| Deductible expenses | No (covered by allowance) | Yes, at actual cost |
| Depreciation | No | Yes |
| When does it pay? | Low expenses, little or no borrowing | High expenses, loan, works |
There is no “best” regime as such: it all depends on your situation (income, expenses, financing, works). This is exactly the kind of comparison an accountant can work out for you in minutes, using your real figures.
Depreciation: the big advantage of the régime réel
Depreciation is probably the most powerful, and least understood, part of LMNP taxation under the régime réel. The idea is simple: a property and its furniture lose value over time. Accounting rules let you record that loss each year as an expense, called “depreciation” (amortissement), which you deduct from your income without any money actually leaving your account.
In practice, you can depreciate each component of the property separately (structure, roof, fixtures and fittings, furniture, appliances, etc.), each over its own period. The effect is significant: depreciation reduces your taxable profit, sometimes sharply, so your rental income may be lightly taxed, or not taxed at all, for several years. This is why the régime réel is so often the better option for furnished landlords.
A word of caution, though: the depreciation rules (components, periods, caps on the deduction, treatment on resale) are technical and tightly regulated, and applying them requires proper accounts. This is exactly where an accountant who specialises in furnished lettings earns their fee.
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What about social security contributions?
Social charges and contributions on holiday lets have become a topic in their own right, because they depend on several factors: how much you earn, the type of letting (classified furnished tourist accommodation or not) and your status (non-professional or professional). Depending on your circumstances, your rental income may be subject to social charges (prélèvements sociaux) and, above certain income levels or in certain situations, to specific social security contributions (cotisations sociales).
The thresholds, rates and calculation methods for these contributions change and depend closely on your personal situation. That is why we give no figures here: we would risk misleading you. This is something you must go through with your accountant, as it can make a real dent in your net returns, especially if you let several properties or earn a significant income from them.
How to choose your tax regime
The golden rule is to think in net income, not gross. A high headline rent tells you nothing about what you will actually keep after tax and expenses. To choose between the micro-BIC and the régime réel, you (or your accountant) will essentially compare two scenarios:
- Your actual expenses are low (property bought outright, little work, light management): the micro-BIC, with its flat-rate allowance and simplicity, is often enough and works in your favour.
- Your actual expenses are high (a mortgage, works, holiday rental management fees, significant furnishing): the régime réel, with deductible expenses and depreciation, usually means a much lower tax bill.
For holiday lets on the French Riviera, where properties are often bought with a loan, carefully furnished and actively managed, the régime réel often comes out on top, but not always. Only a proper calculation based on your own figures can tell you.
Better management, better returns
Tax is only part of the picture. Your net income depends just as much on how well the property performs: occupancy, average nightly rate, listing quality and reviews. On the French Riviera, the average nightly rate varies noticeably from town to town: in summer 2026 (June to August), €184 in Antibes, €177 in Nice, €136 in Cagnes-sur-Mer and €134 in Cannes across the properties we manage, with 84% of available nights booked across the whole portfolio (“Saison 2026 Azur” report, Lodgify). See the town-by-town breakdown in our real occupancy rates.
Many running costs (holiday rental management, cleaning, listing fees) are also deductible under the régime réel, so professional management can both raise your gross income and lower your taxable profit. Handing your property to a holiday rental management company like ours works on both fronts at once. To estimate what your property could earn, try our rental income simulator; to hand over the day-to-day running entirely, see our turnkey management service, at 20% of rent collected, excl. VAT (24% incl. VAT), with no hidden fees.
Rules not to overlook
Whichever tax regime you choose, you still have to meet the regulatory requirements for short-term letting. Before you start, you must register your furnished property, obtain a registration number and, in Nice, follow the change-of-use rules depending on whether the property is a main residence or a second home. All of this is covered in our 2026 guide to furnished tourist accommodation and change of use and, for Nice specifically, in our article on Airbnb rules in Nice in 2026. The tourist tax (taxe de séjour) has its own dedicated article.
Key takeaways
LMNP is the natural tax framework for individuals running a holiday let. Whether to choose the micro-BIC (simple, flat-rate) or the régime réel (optimised, with depreciation) depends on your expenses and how you financed the property: the higher your expenses, the more the régime réel pays off. Depreciation is its main advantage and can cut your tax bill sharply. Social security contributions depend on your situation and need careful review.
Above all, do not base any decision on this article alone: thresholds, rates and conditions change, and every situation is different. Always have your tax strategy checked by your accountant, and confirm the current figures with the French tax authorities and the Métropole Nice Côte d'Azur. For running the property and estimating its income, though, we are here to help: get in touch for a tailored estimate for your property.
This article is not tax advice. Rules and tax law change: check the current thresholds, rates and conditions with your accountant and the Métropole Nice Côte d'Azur.
Want to know more? See our turnkey management for your furnished property and our holiday rental management in Nice.
