Micro tax regime for property owners

The micro regime is a tax regime for property owners where the property is registered to your name rather than a business.

 

It is a simplified regime where you declare your gross income (no deductions, amount paid by the guests/tenants) and the French tax authorities give you a fixed allowance before tax for costs.

 

For furnished rental, this is usually an allowance of 50% (unless your property has been classified with a tourist certificate, which would mean an allowance of 71%!).

 

In this regime you have NO PAPERWORK to provide apart from proof of income (agency statement, reservations list), and you simply confirm the figure for the annual turnover and it is inserted onto your income tax return - no end of year accounts are required. 

 

This regime has certain conditions :  

 

The MICRO regime applies only to an individual enterprise. Only one person can earn the rental income in their own name and if the property is jointly owned, this regime may not be an option  

 

There is a limit to the amount of turnover that can be earned on this regime > without tourist certificate : maximum turnover of 70,000€ > with tourist certificate : maximum turnover of 170,000€