Buying Guide
Rental yield & furnished letting
Furnished letting and the LMNP regime for foreign owners in the Riviera hinterland — the tax, the 2025 rule change, and what yields are realistic.
Can you let a French hinterland home — and what does it earn?
Quick answer: Yes. Most owners let furnished under the LMNP regime (loueur meublé non professionnel), taxed on rental income either under micro-BIC (a flat 50% allowance for long-term or classified-tourism lets, 30% for unclassified tourism lets) or the régime réel (deduct actual costs and depreciation). Gross yields in the prime hinterland are modest — typically 2–3.5% on long-term lets — because these are second-home villages bought for lifestyle and capital growth, not high income.
Letting is common here, but it is a lifestyle-and-capital market first: the same scarcity that drove five-year price growth of +6% to +40% across the eight villages keeps rental yields low relative to cheaper regions. Seasonal letting can lift the gross figure but adds management, voids, and — since the 2024 tourism-letting reforms — more rules. This guide is current as of June 2026; tax treatment is individual, so confirm everything with a French accountant (expert-comptable) and your notaire.
This is general information, not tax advice
Furnished-letting taxation depends on your residency, other income and how you structure ownership. Figures below are dated and primary-sourced, but thresholds and rates change with each loi de finances. Before relying on any number, take advice from an expert-comptable — especially as a non-resident, where French and home-country tax interact.
LMNP: micro-BIC vs régime réel
Quick answer: Micro-BIC is simplest — a flat allowance (50% long-term/classified, 30% unclassified tourism) and you are taxed on the rest. The régime réel lets you deduct actual costs plus depreciation, which often wipes out taxable income on a larger property, at the cost of accounting. The right choice depends on your costs and your debt.
| Micro-BIC | Régime réel | |
|---|---|---|
| How taxed | Flat allowance, then taxed | Actual costs + depreciation deducted |
| Allowance / deductions | 50% (long-term & classified tourism); 30% (unclassified tourism) | Real expenses, interest, depreciation |
| 2026 turnover ceiling | ~€83,600 (long-term & classified); lower for unclassified tourism | No ceiling; can be elected |
| Admin | Light | Accountant usually needed |
| Best when | Low costs, low or no mortgage | High costs, mortgage, or recent purchase |
Source: impots.gouv.fr and economie.gouv.fr, as of June 2026. The micro-BIC ceiling and allowances are set by the annual loi de finances and were tightened for tourism lets in the 2025 reform; confirm the figure for your letting type and year with an expert-comptable.
The 2025 change: depreciation now bites on sale
Quick answer: Since the Loi de finances 2025, for disposals on or after 15 February 2025, the depreciation an LMNP owner deducted under the régime réel is added back when calculating the capital gain on sale (the acquisition price is reduced by the depreciation taken). This raises the taxable gain. The long-standing exemptions still apply: income-tax CGT after 22 years of ownership, social levies after 30 years.
This matters most if you let under the régime réel and plan to sell within the taper period. Previously, depreciation reduced your annual rental tax without increasing the gain on sale; now it does both. The change does not affect the headline plus-value rates or the 22-year / 30-year exemption timeline, and it only concerns depreciation actually deducted under the réel regime — micro-BIC owners are unaffected on this point.
How it interacts with non-resident CGT
French capital-gains tax on property applies wherever you live (the gain arises in France). Read this section alongside our plus-value / capital gains guide, which covers the rates, the taper to zero and the non-resident fiscal representative requirement. An expert-comptable should model the réel-vs-micro trade-off across both your rental years and your expected sale.
Seasonal vs long-term, registration and taxe de séjour
Quick answer: Long-term furnished lets are simpler and steadier; short-term tourism lets can earn more gross but face tighter rules — many communes now require registration and a declared number, the 2024 reform cut the unclassified-tourism allowance to 30%, and you must collect taxe de séjour from guests.
- Long-term furnished (bail meublé). A one-year (or nine-month student) lease, steadier income, lighter management. Taxed under LMNP micro-BIC at the 50% allowance or the réel. The default for owners wanting hands-off income.
- Short-term / seasonal tourism. Higher gross potential but more work and regulation. Since the November 2024 furnished-tourism reform, the micro-BIC allowance for unclassified tourism lets is 30% (classified stays at 50%), and many communes — especially on the coast — require a registration number and may cap nights or change-of-use. Check the mairie’s rules before counting on Airbnb-style income.
- Taxe de séjour. A per-guest, per-night tourist tax you collect and remit; the rate is set locally and varies by commune and rating. It is a pass-through, not a cost to you, but you must administer it.
- Furniture standard. A "furnished" let must meet the statutory minimum-equipment list to qualify as meublé; otherwise it is treated as unfurnished, with different (and usually less favourable) tax.
What yields are realistic — and the bigger picture
Quick answer: Treat the hinterland as a capital-growth market with modest income, not a high-yield one. Long-term gross yields here are typically 2–3.5%; net is lower after taxe foncière, management, insurance and voids. The return case rests more on the +6% to +40% five-year price appreciation than on rent.
Indicative gross yields (annual rent ÷ price) in the prime villages tend to sit in the low single digits — these are expensive homes relative to local rents. Seasonal letting can raise the headline figure, but voids, management at 20–30% of revenue, wear, and the tighter tourism rules erode it. Run a net number, not a gross one, and weigh it against the capital story:
- Budget the carrying costs first — taxe foncière and taxe d’habitation on second homes, insurance, management and maintenance.
- Model the exit — the 2025 depreciation change and non-resident capital-gains rules shape your real return on sale.
- Mind the ownership wrapper — an SCI changes how letting income and succession work; take advice before buying to let.
- Start from the basics — the complete guide to buying in France as a foreigner and the full cost of buying.
For a view on a specific property’s value and letting potential, use the valuation tool or talk to our team.
Frequently Asked Questions
Frequently Asked Questions
LMNP (loueur meublé non professionnel) is the standard tax status for individuals letting furnished property without it being their main profession. Rental income is taxed as BIC, either under micro-BIC (a flat allowance) or the régime réel (actual costs and depreciation deducted). Confirm your status with an expert-comptable.
50% for long-term furnished lets and classified tourism lets, and 30% for unclassified tourism lets, under a turnover ceiling around €83,600 for the long-term/classified category (lower for tourism). These are set by the annual loi de finances — verify the current figure with an accountant.
For disposals on or after 15 February 2025, depreciation deducted under the régime réel is added back when computing the capital gain (the acquisition price is reduced by depreciation taken), raising the taxable gain. The 22-year income-tax and 30-year social-levy exemptions still apply. Micro-BIC owners are unaffected by this change.
Long-term gross yields are typically a modest 2–3.5%, and net is lower after taxe foncière, management, insurance and voids. These are second-home villages where the return case rests on capital growth (+6% to +40% over five years) rather than rent. Always model a net figure.
Often yes. Since the November 2024 furnished-tourism reform, many communes require a registration number for short-term lets and may cap nights or restrict change of use, and the micro-BIC allowance for unclassified tourism fell to 30%. Always check your commune’s rules with the mairie before letting short-term.
French rental income is taxable in France because the property is here, with social levies on top (reduced for those affiliated to an EEA social-security scheme). Your home country may also tax it, with relief under the relevant double-tax treaty. This is individual — take advice from an expert-comptable familiar with cross-border cases.
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