Phase 2 · Bringing the Property into Compliance

Micro-BIC or Regular BIC: How to Decide

The micro-budget approach is simple and based on a flat rate, while the actual budget is demanding and often much more favorable when there’s a loan or construction work involved.

This is the big tax question for furnished rental property owners. Income from your short-term rental in Toulon is classified as industrial and commercial profits, and you have two tax regimes to choose from: the micro-BIC, which is a flat-rate system with no paperwork, or the actual-cost method, which allows you to deduct your actual expenses and depreciate your property. The right choice depends on your situation, and it must be made before you file your tax return, not after.

This page compares the two options, lists the situations where the full-size version is necessary and those where the micro version is sufficient, and explains what we can do to help you decide.

Landmark

The thresholds and deductions listed below result from the reform that took effect for 2025 income. The classification of your furnished vacation rental significantly changes the situation under the “micro” tax regime.

The Two Regimes

Criterion

Micro-BIC

Actual

Principle

A flat-rate deduction from revenue

Deduction of Actual Expenses and Depreciation of the Property

Unclassified furnished unit

30% deduction, up to €15,000 in revenue

No upper limit

Listed Furnished Apartment

50% deduction, up to €77,700 in revenue

No upper limit

Accounting

None

Tax return, preparation of a balance sheet

Cost

None

Accounting Fees

When Reality Takes Center Stage

You have a loan. Loan interest is tax-deductible under the actual method, not the micro method.
You've recently done some renovations or furnished the property.
Your expenses exceed the deduction. Condominium fees, property tax, insurance, concierge fees, utilities: add them up and compare the total to the flat rate.
You want to claim depreciation. That’s the key mechanism: Depreciation of the property and furnishings reduces a large portion of your taxable income without any cash outflow.

When a Microphone Is Enough

A property held without a mortgage, with few expenses, low income, and an owner who doesn't want the hassle of hiring an accountant. Simplicity has real value; but you still need to choose it with full knowledge of the facts.

Good to Know

Classification as a vacation rental changes everything from a micro-level perspective: it increases the tax deduction from 30% to 50% and raises the revenue cap from €15,000 to €77,700. The classification process is worth exploring.

The Mistake to Avoid

Choosing simplicity alone while ignoring depreciation. This is the decisive mechanism of reality: it eliminates a large portion of taxable income without any cash outflow—something no flat-rate deduction can replicate.

Points to Watch For

Concierge fees and the flat-rate cleaning fee are deductible expenses under the actual expense method. Under the micro-taxation system, they are covered by the tax deduction, regardless of whether the deduction offsets them or not.
The cleaning fee boosts your revenue. You collect it and then pass it on: the transaction is neutral, but it counts toward determining the micro-enterprise thresholds.
The tax status you declare at the outset is binding. Switching from the micro-entity tax regime to the standard tax regime is possible, but the reverse is more restrictive: make your decision before filing the business registration described on page 2.4.

Warning

The concierge service agreement does not include any obligation to provide tax advice, and we adhere to that. That said, the founder of Loca'Zen is a wealth management specialist: a comparative analysis of the two tax regimes as they apply to your actual situation can be conducted separately, under a separate engagement letter. This is optional: wealth management advice is governed by its own rules.

Frequently Asked Questions

I have an outstanding loan: Which plan should I choose?

In reality, almost always: interest on the loan is deducted, and principal payments are added. The only way to confirm this is to run a simulation using your own figures.

Is the furnished apartment worth checking out?

On the air, he raises the deduction from 30% to 50% and increases the cap fivefold. Depending on your revenue, the savings more than justify the move.

Can I switch to a different plan later?

From the micro to the real—yes. The reverse is more restrictive. Hence the rule: decide before making a statement, not after.

Can you run the simulation for me?

Not as part of the concierge service contract. Under a separate arrangement, with a separate engagement letter, the founder—a wealth management engineer—can conduct a comparison based on your actual situation.