Micro-BIC flat-rate regime
The micro-BIC regime applies to furnished landlords (LMNP or LMP) whose annual receipts fall below €77,700 for standard furnished rentals (or €188,700 for classified tourist furnished rentals). It grants a 50% flat-rate allowance (71% for classified tourist rentals), exempting the landlord from itemizing actual expenses.
Key points
- Standard threshold: €77,700 in receipts for classic furnished rentals.
- 50% allowance for standard furnished rentals; 71% for classified tourist rentals.
- No deficit can arise under this regime — the tax base is always positive.
- Option to switch to actual-expense BIC regime is possible, binding for 2 years.
- Incompatible with Censi-Bouvard depreciation (now expired but relevant for files in progress).
Frequently asked questions
How should a LMNP landlord choose between micro-BIC and actual-expense BIC?
If actual expenses — interest, property and furniture depreciation, management fees — exceed 50% of receipts, the actual-expense regime is more beneficial and can even generate a carryforward deficit. Under micro-BIC, the 50% allowance is capped and no deficit is possible, but accounting overhead is minimal.
Why is the micro-BIC threshold higher for classified tourist furnished rentals?
Official classification (1 to 5 stars) reflects recognized quality standards and aligns with national tourism-attractiveness policy. In return, the legislature granted favorable tax treatment — a 71% allowance and a higher receipts threshold — to incentivize property owners to invest in quality.
What happens when receipts exceed the micro-BIC threshold during the year?
Exceeding the threshold triggers a mandatory switch to the actual-expense BIC regime from the following year. If receipts exceed the threshold for two consecutive years, the switch takes effect immediately from the year of exceedance. Monitoring receipts from the first half of the year is therefore advisable.
In practice
Paul rents out a furnished apartment on a year-round basis for €1,200/month (€14,400 annually). His actual expenses total €5,000, or 35% of receipts. Under micro-BIC, the 50% allowance (€7,200) exceeds his real costs: he is taxed on just €7,200, with no formal bookkeeping required.
Official sources
- Furnished rentals (micro-BIC regime) · impots.gouv.fr
- Furnished rental: tax regime (BOI-BIC-CHAMP-40-20) · BOFiP — impots.gouv.fr
- Housing and financing information · ANIL