The Le Meur law, which was passed on 19 November 2024 and came into force on 1 January 2025, overhauls the taxation of furnished tourist accommodation in France. The aim of the bill is twofold: to regulate tourist accommodation in areas under pressure, while preserving access to housing for local residents.
With the explosion in short-term rentals via platforms such as Airbnb, the legislator wanted to strictly regulate the furnished rental business, whether this involves furnished tourist accommodation, gîtes or chambres d'hôtes. The new tax relief rates and stricter reporting rules are redefining the strategies of property owners.
This article deciphers the new rules introduced by the Act of 19 November, distinguishing between the regimes applicable to different types of letting and analysing their implications for income tax, the micro-BIC regime and the actual regime. Particular attention is paid to the challenges of the ecological transition, with the mandatory energy performance diagnosis (DPE), and to changes in co-ownership regulations.
The micro-BIC scheme, applicable to non-professional furnished-rental property owners (LMNP), will undergo major changes from January 2025. The new law modifies the ceilings and rates of the flat-rate allowance, having a direct impact on the taxation of rental income.
The turnover ceiling for eligibility under the micro-BIC scheme is now set at €77,700 for classified furnished tourist accommodation and bed and breakfast. This significant reduction compared with the previous threshold of €188,700 is designed to limit the tax advantage for owners of multiple properties rented out for tourism.
For unclassified furnished tourist accommodation, the ceiling has been reduced to €15,000 of annual rental income, compared with the previous limit of €77,700. This distinction encourages owners to have their tourist accommodation classified to benefit from a more advantageous tax regime.
The flat-rate allowance used to determine taxable income under the micro-BIC scheme has also been reduced for certain categories of furnished tourist accommodation.
The Le Meur law introduces a differentiation in tax allowance rates according to the type of furnished tourist accommodation, creating a tax hierarchy between the different forms of accommodation.
Classified furnished tourist accommodation benefits from a 50% tax allowance on rental income. Although this rate is lower than under the previous system (70%), it is still more advantageous than that applied to unclassified furnished accommodation, encouraging owners to have their properties classified.
For unclassified furnished tourist accommodation, the tax allowance has been set at 30% (compared with 50% previously). This reduction is designed to encourage owners to improve the quality of their accommodation and obtain official classification.
These new allowance rates have a direct impact on the calculation of income tax and social security contributions. For example, for a turnover of €50,000 :
This significant difference is a strong incentive for owners to have their properties classified in order to optimise their tax position.
For the time being, no changes have been made to the rules governing taxation on actual profits, either in the Le Meur Law or in the Finance Law for 2025.
However, there is talk of deducting depreciation from the cost price when calculating the capital gain on resale. This would result in a significant increase in the capital gain and therefore in tax levies in the event of resale before 30 years.
However, this provision could be adopted in the future. We therefore need to keep a close eye on legislative developments.
Gîtes, a popular form of tourist accommodation in rural areas, are also affected by the new tax provisions of the Le Meur law. We therefore need to keep a close eye on legislative developments.
Although the law does not give a specific definition of gîtes, they are generally considered to be furnished holiday accommodation in rural areas. As such, they are subject to the same tax rules as other furnished holiday accommodation, with a few special features.
Gîtes are subject to the same ceilings and allowance rates as other furnished tourist accommodation. Thus, a classified gîte will benefit from the 50% allowance, while a non-classified gîte will be subject to the 30% allowance.
It is important to note that some players in the sector are arguing in favour of differentiated tax treatment for gîtes, citing their role in the development of tourism in rural areas. However, no specific provisions have yet been adopted.
Owners of gîtes are subject to the same reporting obligations as other tenants of furnished tourist accommodation. In particular, they must
Classified furnished tourist accommodation benefits from more favourable tax treatment, which encourages owners to take this step.
The classification of furnished tourist accommodation is a voluntary procedure that allows you to obtain from 1 to 5 stars. The classification criteria include :
Despite the reduction in the flat-rate allowance, classified furnished holiday accommodation retains a significant tax advantage over unclassified accommodation:
The classification procedure involves an inspection visit by an accredited body. The classification is valid for 5 years. In the context of the new tax system, this procedure is even more important for owners wishing to optimise their taxation.
Since the law of 19 November 2024, bed and breakfast establishments have benefited from the same separate tax treatment as classified furnished tourist accommodation.
To be recognised as such, the activity must meet three criteria:
New for 2025: The income ceiling for the micro-BIC scheme has been raised from €188,700 to €77,700 per year. This change is designed to limit the commercial excesses of this activity.
Bed and breakfast establishments retain a 50% tax allowance, subject to certain conditions:
The new law introduces a clear distinction between :
Non-tourist rentals are now covered by the classic LMNP scheme, with a 30% allowance on income (compared with 50% previously) under the Micro-BIC scheme.
‘The Le Meur law marks a turning point in the taxation of lettings by gradually bringing the regime for non-professional furnished lettings into line with that for bare rentals’. - Extract from the debates at the National Assembly
In summary, the new tax regime introduced by the Le Meur law marks a historic turning point for the furnished tourist accommodation sector. By lowering the ceilings for the micro-BIC scheme, modulating tax allowances according to the classification of the accommodation and tightening controls on the length of the rental period, the legislator is seeking to rebalance local property markets.
Owners of classified furnished tourist accommodation retain a significant tax advantage (50% allowance), providing an incentive to improve the quality of tourist accommodation. On the other hand, unregulated seasonal lettings in tight areas will be subject to unprecedented restrictions, with a possible maximum limit of 90 days' rental per year and penalties for making false declarations.
The compulsory introduction of an EPD from 2025 and the gradual ban on energy-guzzling properties illustrate the integration of ecological transition issues into rental taxation. At the same time, co-ownership regulations are changing to limit the impact of short-term lets on the lives of residents.
For landlords, adapting to this new law means
With these measures aimed at reinforcing the balance between tourism and permanent housing, the Le Meur law redraws the contours of furnished rental in France, while opening up avenues for reflection on the regulation of digital platforms and the preservation of the public housing service.
