Are you a property owner hesitating over which rental strategy to adopt, or a tenant searching for your future home in France? The choice between a furnished rental (location meublée) and an unfurnished rental (location vide) is one of the most crucial decisions in your real estate journey, as it commits both parties to radically different legal and tax paths. In France, this choice cannot be improvised: it is strictly regulated by law and can impact your taxes and income by several thousand euros. This comprehensive guide, written by our experts, gives you all the keys to objectively compare these two regimes and make the most strategic choice for your situation.
---
The distinction between a furnished lease (bail meublé) and an unfurnished lease (bail vide) is based on a strict legislative framework, primarily governed by Law No. 89-462 of July 6, 1989, aimed at improving rental relations.
Unfurnished rental is the traditional common-law regime. It offers great stability to the tenant, which translates into more rigid constraints for the landlord.
A furnished rental is characterized by providing accommodation that is immediately habitable by the tenant, who only needs to bring their personal belongings.
---
It is in the tax arena that the difference between unfurnished and furnished is most spectacular. Income from an unfurnished rental is taxed under the category of property income (revenus fonciers), while income from a furnished rental falls under Industrial and Commercial Profits (Bénéfices Industriels et Commerciaux or BIC).
| Feature | Unfurnished Rental (Revenus Fonciers) | Furnished Rental (BIC - LMNP) |
| :--- | :--- | :--- |
| Standard Flat-rate Regime (Threshold) | Micro-foncier (Income < 15,000 € / year) | Micro-BIC (Income < 77,700 € / year) |
| Flat-rate Allowance | 30% (you are taxed on 70% of the income) | 50% (you are taxed on 50% of the income) |
| *Actual Regime / Itemized Option (Régime Réel) | Régime réel foncier (mandatory if > 15,000 €) | Régime réel BIC*** (mandatory if > 77,700 €) |
| Deduction of Expenses | Mortgage interest, maintenance work, property tax | All actual expenses + Property depreciation |
The status of Non-Professional Furnished Landlord (Loueur en Meublé Non Professionnel or LMNP) under the actual regime (régime réel) is often the most advantageous. It allows you to deduct the theoretical wear and tear of the building and furniture: this is depreciation (amortissement).
In practice, you can deduct a percentage of the property's value (excluding land value) and the furniture from your rental income each year. Very often, this accounting mechanism allows you to reduce your taxable profit to 0 €, enabling you to pay no tax on your rental income for several years.
---
To better understand the impact of these regimes, let us analyze two concrete situations.
Marie owns a studio in Lyon worth 150,000 €. She rents it for 800 € per month including charges (i.e., 9,600 € of gross annual income). Her marginal tax rate (tranche marginale d'imposition or TMI) is 30%. Her actual expenses (co-ownership charges, property tax, insurance) amount to 1,200 € per year. She has taken out a mortgage with annual interest of 1,500 €.
Marie hires a chartered accountant (expert-comptable) to depreciate her property.
---
If you decide to start, here is the path to follow to be in perfect compliance with French regulations.
1. Prepare the Property: Carry out the mandatory technical diagnostics (DPE [energy performance certificate], electricity, gas, lead, asbestos, ERP [environmental risks]) with valid dates.
2. Draft the Lease: Use a standard contract template compliant with the Loi Alur (Alur Law).
3. Perform the Inventory of Fixtures: Conduct a meticulous and joint entry inventory of fixtures (état des lieux d'entrée), signed by both parties.
4. Collect the Security Deposit: Limited to 1 month of rent excluding charges.
5. Declare Income: Every year in the spring, report the rents received on the tax return No. 2042 (box 4BE for micro-foncier) or No. 2044 (for the régime réel).
1. Equip the Property: Purchase and install all 11 mandatory items required by law (see FAQ).
2. Perform Diagnostics: Same obligation for technical diagnostics as for unfurnished rentals.
3. Register with the Commercial Court Registry (Mandatory): Within 15 days of starting the rental, you must declare your activity as a non-professional furnished landlord to obtain a SIRET number. This free procedure is done online on the Guichet Unique (single window for business formalities) website managed by the INPI.
4. Draft the Furnished Lease: Use a standard furnished lease contract with a duration of 1 year (or 9 months for a student).
5. Perform the Inventory of Fixtures and Furniture: Draw up a precise inventory of fixtures and, obligatorily, a detailed and valued inventory of the condition of each piece of furniture and equipment provided.
6. Collect the Security Deposit: Limited to 2 months of rent excluding charges.
7. Declare Income: Declare receipts on tax return No. 2042-C-PRO (box 5ND for micro-BIC). If you choose the régime réel, it is highly recommended to hire a chartered accountant to electronically transmit the tax return package No. 2031 and its annexes.
---
---
According to the decree of July 31, 2015, the accommodation must include at least:
1. Bedding including a duvet or blanket;
2. A window-shading device in bedrooms (curtains, shutters);
3. Cooking hobs;
4. An oven or microwave oven;
5. A refrigerator and freezer (or at least a refrigerator equipped with a freezer compartment);
6. Tableware necessary for taking meals;
7. Kitchen utensils;
8. A table and seats;
9. Storage shelves;
10. Lighting fixtures;
11. Housekeeping equipment adapted to the characteristics of the accommodation (vacuum cleaner, broom, mop).
No, you cannot unilaterally change the nature of the lease along the way. To convert an unfurnished rental into a furnished one, you must wait for the current tenant to leave (or give them notice to vacate for a legitimate and serious reason at the end of the 3-year lease), fully furnish the property, and then sign a new furnished lease with a new tenant.
The taxation of LMNP, particularly the micro-BIC regime allowance and depreciation rules, is regularly debated in Parliament as part of finance laws. While legislative changes or reductions in tax niches are sometimes voted on (especially for short-term tourist rentals like Airbnb), the LMNP status for long-term rentals (primary residence) remains particularly protective and attractive in France to this day.
A tourist rental (meublé de tourisme - short-term seasonal rental) is aimed at passing clients who do not make it their home. It is subject to very strict local rules (authorization for change of use, declaration at the town hall, quotas in certain cities). A classic furnished rental, on the other hand, constitutes the tenant's primary residence (lease of 1 year or 9 months) and is not subject to these usage restrictions.
---
Legal information for guidance only, not personalised legal advice. For your specific situation, ask your question free of charge on AvocatAI — answers based on French law, in your language.