Short-term or long-term rental: differences in leases, taxation, and risk

The two types of rentals are subject to different leases and tax regimes. For long-term rentals, the lease is three years for an unfurnished property and a minimum of one year for a furnished one (nine months for a student). For short-term rentals, the term "furnished tourist accommodation" is used: a single client cannot stay for more than 90 consecutive days per calendar year. Income from an unfurnished property is classified as property income, while income from a furnished property is classified as industrial and commercial profits (BIC).

This page compares options. It does not recommend one over the other: the right choice depends on each owner's situation.

The lease: four executives

Some details taken from service-public.gouv.fr:

• The one-month notice period for furnished accommodation applies even if the lease is only for nine months, without reason or justification.
• The mobility lease is reserved for tenants in vocational training, higher education, apprenticeship, internship, civic service, transfer or temporary assignment.
• The maximum security deposit (one month's rent for an unfurnished apartment, two months' rent for a furnished one) applies when the rent is payable in advance monthly or every two months. If the rent is payable in advance quarterly, a security deposit is not permitted.
• The reduced notice period of one month for an empty property has other cases than the tense zone: the service-public fact sheet on the tenant's notice period details them.
• The security deposit will be returned within a maximum of one month if the move-out inspection report matches the move-in report, and within two months otherwise. A delay will incur a penalty of 10% of the monthly rent (excluding charges) per month started.
• Rent control varies by municipality. In some municipalities located in high-demand areas, rents are regulated. For short-term rentals, rent is freely determined.

Furnished tourist accommodation: the regulations governing it

Furnished tourist accommodation is lodging offered to transient guests for short stays, not as their primary residence. Several rules apply to it:

• 90 consecutive days per customer. The limit is 90 consecutive days of rental per calendar year for the same customer.
• Primary residence. In the municipalities concerned, the total annual number of days rented varies between 90 and 120 days.
• Written contract. The offer or contract must be in writing and state the price requested.
• Condominium. Since November 21, 2024, the condominium regulations must explicitly state whether or not furnished tourist accommodations are allowed.
• Tourist tax. In the municipalities that have implemented it, it is collected from tenants.
• Optional ranking. There are 5 categories, from 1 to 5 stars. The decision is valid for 5 years. Participation is optional and there is a fee.
• Declaration at the town hall and registration. The official websites I consulted do not describe the same schedule. Check with your local council before renting.

Taxation: rental income or BIC

For tax purposes, the micro-BIC regime is declared on form 2042-C-PRO. For the actual expenses regime, you file form 2031 annually with the business tax office, then declare the profit in the designated sections of your income tax return. For unfurnished rentals, the portion of the property deficit not resulting from loan interest can be offset against total income up to an annual limit of €10,700 (the remainder can only be offset against rental income in subsequent years; see the dedicated page). For a deficit from non-professional furnished rentals, see the dedicated page.

Risks and management

economie.gouv.fr highlights several points of concern, which do not all relate to the same type of rental.

In the short term:

• Vacancy. Short-term rentals expose the property to a risk of vacancy depending on its tourist appeal.
• Equipment. Short-term rentals require that the accommodation be equipped according to regulations.

In the long term:

• Unpaid bills. The page indicates that it is possible to take out rent guarantee insurance.
• Formalities. Within 15 days of the first day of long-term rental, the creation or start of the activity must be declared via the business formalities desk.

The same property rented in three different ways: a numerical example (fictitious profile)

Situation. Nadia owns an apartment. Hypothetical scenario, 2026 income: annual rents of €9,600 unfurnished, €11,400 furnished long-term, and €14,400 furnished unclassified tourist accommodation. Marginal tax rate of 30%. Social security contributions are applied to income after deductions. Vacancy, expenses, and rent arrears are not factored in.

Issue. Compare what the micro-regime leaves taxable in each case.

Strategy. Apply the tax allowance: 30 % for micro-property income, 50 % for long-term micro-BIC income, 30 % for unclassified micro-BIC income. Calculate the tax at 30 % and social security contributions (17.2 % or 18.6 %).

Result.

Taxes and levies represent 33.0 %, 24.3 %, and 34.0 % of revenue. This table only compares taxation. It says nothing about net yield, which depends on vacancy rates, expenses, and management time.

These profiles are fictitious. The figures illustrate the calculation and do not predict your situation.

Short-term or long-term rental: what changes depending on your situation

• The situation of the property. High-demand area, rent control, condominium regulations.
• Your primary or secondary residence. The maximum number of days differs.
• The level of your recipes. It determines the simplified or actual regime and the threshold of €23,000 for social security contributions.
• The classification of furnished tourist accommodation. It plays on the threshold and the reduction of the micro-BIC.
• Your management time. The sources consulted do not specify the figure.
• Your tax residence. For a non-resident landlord, the rule depends on your situation, which should be checked before deciding.

The rule depends on your situation. No results are guaranteed.