Choice of status and tax regime: which strategy for your rental investment?

The choice of status and tax regime is crucial for any property investor in Massy, Palaiseau and Chilly-Mazarin. This decision directly influences the tax efficiency of your rental investment and can result in significant savings. Recent changes in 2025 have notably altered thresholds and allowances for different tax regimes.

Efficient tax optimisation begins with an informed selection of the right legal structure and tax framework for your assets.

Rental of unfurnished property: income and tax regimes

Micro-foncier regime: simplicity and flat-rate deduction

Renting out unfurnished property is taxed as real estate income. If your annual income does not exceed 15,000 euros, the micro-foncier regime applies automatically. You benefit from a flat-rate deduction of 30 percent, which covers all expenses without further detail. Beyond 15,000 euros, you must use the actual taxation regime.

Actual regime: real deduction of expenses

The actual regime lets you deduct many expenses such as works, insurance, property tax and loan interest. A key benefit is the ability to offset property deficits against your overall income, up to 10,700 euros per year, or 21,400 euros for energy renovation expenses in 2025.

Rental of furnished property: BIC and LMNP/LMP statuses

How to obtain each status

Furnished rentals are taxed as commercial profits (BIC) and divided into two statuses: LMNP (non-professional furnished rental) and LMP (professional furnished rental). LMP applies when two criteria are met: annual rental income over 23,000 euros and these earnings exceed other household activity income.

Micro-BIC regime: changes in 2025

For furnished rentals, the Micro-BIC regime allows a 50 percent deduction up to 77,700 euros in annual income. For unclassified tourist rentals, the deduction drops to 30 percent with a lower 15,000 euro ceiling starting in 2025.

Actual BIC regime: amortisation and maximum deductions

The actual BIC regime permits deduction of all operational costs and the amortisation of the property or furniture, often reducing taxation to zero for several years. However, capital gains upon resale in the LMNP regime will now be calculated including previous depreciation, except for qualifying residences (university, senior, social, medical).

Legal acquisition structures and implications

Using a SCI for furnished rentals

A civil real estate company (SCI) faces special rules for renting furnished properties. Since it becomes a commercial activity, the SCI loses tax transparency and is subject to corporate tax unless furnished income remains below 10 percent of total receipts.

SARL and SAS: not suitable for unfurnished rentals

SARL and SAS property companies do not allow offsetting property deficits and entail double taxation: first at company level, then at dividend distribution. They are not efficient for unfurnished rental.

Direct ownership: maximum flexibility

Acquiring property in your own name is the most flexible solution, suitable for either furnished or unfurnished rentals and easier to manage without additional legal fees.

Tax optimisation according to investor profile

Small portfolios

If your rental income is below 15,000 euros per year, simplified regimes like micro-foncier or micro-BIC offer streamlined management. Furnished rentals generally command higher rents, often 10 to 20 percent more, with a better deduction rate.

Significant investments

For higher rental incomes, switching to the real regime is advised for both types of properties. In unfurnished rentals, deducting real charges and offsetting deficits is optimal. For furnished rentals, amortisation often cancels out tax due for many years.

Asset and inheritance strategy

The SCI is advantageous for inheritance planning, allowing shares to be passed on more easily. For furnished rentals, opting for corporate tax allows amortisation but involves double taxation.

Nicolas Immobilier's expert advice for Massy, Palaiseau and Chilly-Mazarin

The optimal regime depends on your investment amount, tax profile, holding and succession objectives. Regulatory changes in 2025 enhance the attractiveness of unfurnished rentals and restrict deductions for tourist furnished properties. Starting in your own name with the actual regime is recommended as soon as your expenses exceed standard deductions. Consider company structures only if managing significant estates or planning long-term inheritance strategies. In view of increasing complexity, professional support will help you secure choices and maximise return.

To learn more, read the full article here:
https://nicolas-benoit-immobilier.fr/actualite/choix-du-statut-et-du-regime-fiscal-quelle-strategie-pour-votre-investissement-locatif

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Nicolas Benoit, Real estate agency director, Massy.

"Optimising your tax regime starts with choosing the right legal structure for your investment goals."