Here is an up-to-date overview (2025–2026) of the tax rules applying to classified furnished tourist rentals in France — what an owner of a holiday villa in the Luberon (or anywhere in France) needs to know today, including the changes introduced by recent legislation.
Reminder: How furnished rentals are taxed
Income from a furnished rental (short-term or seasonal) is taxed under the category of Industrial and Commercial Profits (BIC).
There are two main tax regimes:
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the simplified Micro-BIC regime, and
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the Real (Réel) regime, which can be optional or mandatory depending on the level of income.
Recent changes (2024–2025 laws) — applicable in 2025/2026
The reforms passed at the end of 2024 (including the Le Meur law) and the 2025 Finance Act have modified the tax rules for furnished tourist rentals — both classified and non-classified.
Reduction of the “lump-sum” allowance
For a classified furnished tourist property (villa, guesthouse, etc.):
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the deduction applied under the Micro-BIC regime has been reduced from 71% to 50%.
For a non-classified furnished rental (short-term rental without an official label):
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the Micro-BIC regime remains possible but with a very low revenue cap of €15,000 per year
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and only a 30% allowance.
Adjusted revenue thresholds for Micro-BIC
For a classified furnished rental or a B&B:
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the annual revenue ceiling to qualify for the simplified regime is now €77,700.
Beyond this threshold, the Real regime becomes mandatory.
The Real regime: often more advantageous — but more demanding
Under the Real regime, owners can deduct actual expenses (maintenance, depreciation, repairs, management fees, etc.), which can significantly reduce taxable income — especially when costs are high (pool maintenance, equipment, services, etc.).
However, this regime requires accurate bookkeeping, keeping all receipts, and a generally heavier administrative workload.
Depreciation and capital gains
Since the reform, depreciation applied as part of a furnished rental activity may be reintegrated into the capital gains calculation upon resale, which can reduce the tax benefit at the time of selling the property.
For a classified rental, this can have an even greater impact when the property is sold after several years of ownership — careful planning is essential.
What this means for owners of villas with swimming pools (in the Luberon or elsewhere)
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Obtaining an official classification (meublé de tourisme) remains beneficial — it improves the tax allowance (50% vs. 30% for non-classified rentals) and provides access to the higher Micro-BIC revenue ceiling (€77,700). However, the advantage is less significant than in previous years.
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If your villa generates substantial rental income (especially high-end villas with strong occupancy), the Real regime may become more advantageous than Micro-BIC — particularly when you have significant expenses (pool maintenance, equipment, services, taxes, depreciation).
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It is essential to maintain rigorous accounting: keep invoices, receipts, depreciation records, etc., to safely deduct expenses under the Real regime.
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When selling the property, the impact of depreciation on capital gains must be anticipated — it can affect long-term net profitability.
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Finally, the recent reforms (Le Meur law, increased scrutiny of tourist rentals) show how important it is to remain compliant — classification when possible, proper declarations, and adherence to tax and administrative obligations — in order to secure the rental activity over the long term.
