You rent out a furnished property in French Guiana, Martinique or Guadeloupe and you’re wondering how to declare your rental income correctly? Good news: once you understand the logic, declaring a furnished rental always follows the same broad steps. In this guide, you’ll find the essential principles of the LMNP status, the difference between the micro-BIC and the actual-expense (régime réel) regimes, how depreciation works, as well as the concrete steps to anticipate as an owner in the Antilles-French Guiana region.
⚠️ General information, not personalised tax advice. This article is intended for educational purposes. The rules, thresholds and forms change regularly, and every situation is unique. Before making any decision, speak with a chartered accountant or the tax office (impots.gouv.fr) to confirm exactly what applies to your case.
Understanding the nature of furnished rental income
The first thing to grasp: renting out a furnished property does not fall under the same tax category as an unfurnished rental. The rents you collect are generally treated as industrial and commercial profits (BIC), not as property income. This distinction has direct consequences on how you declare and on which regimes are available to you.
Most private owners fall under the non-professional furnished rental (LMNP) status. Under certain conditions of revenue and activity, you may shift to the professional furnished rental (LMP) status, which follows different rules. Here again, the criteria change over time: don’t assume your status without checking it with a professional.
Why your status matters
Your status (LMNP or LMP) influences, among other things:
- the tax regime you can opt for;
- the treatment of any losses;
- the social contributions you may be liable for;
- the consequences when you eventually sell the property.
Because these factors combine, two neighbouring owners can end up in very different tax situations. This is one of the reasons personalised advice remains essential.
Declaring your activity and obtaining a SIRET number
Even before thinking about your first income declaration, keep in mind that furnished renting is legally a business activity. As such, you generally must declare it with the business formalities desk in order to obtain a SIRET number, even as a non-professional landlord.
This step, often overlooked by new owners, sets the stage for everything else. Without registration, you may not be able to declare your income correctly. Make a habit of doing it as soon as you start renting, and carefully keep all the supporting documents related to your property (purchase invoices, works, furniture, management fees).
Micro-BIC or actual-expense regime: the defining choice
The heart of your declaration rests on the tax regime you choose. Two main families exist, and their logic differs radically.
The micro-BIC regime
Micro-BIC is the simplified regime. Its principle: you declare the amount of your revenue (the rents collected), and the tax authority automatically applies a flat-rate allowance meant to represent your expenses. You therefore don’t have to justify your actual costs.
Its advantages:
- simplicity: no detailed bookkeeping to maintain;
- clarity: you quickly know the base on which you’ll be taxed.
Its limits:
- the allowance is flat-rate: if your actual expenses exceed this allowance, you pay tax on a higher base than necessary;
- the allowance rates and revenue thresholds vary depending on the type of furnished rental and change over time — always check the rates currently in force.
The actual-expense regime (régime réel)
Under the régime réel, you keep proper accounts and deduct your actual expenses: loan interest, insurance, management and concierge fees, minor repairs, taxes, and above all the depreciation of the property and furniture (see below).
Its advantages:
- you deduct your actual costs, which are often higher than the flat-rate allowance;
- depreciation can significantly reduce the taxable result, sometimes to the point of offsetting all tax on the rents for several years.
Its constraints:
- rigorous bookkeeping is required, usually with the support of a chartered accountant;
- the reporting formalities are heavier.
As a general rule, the régime réel becomes worthwhile as soon as your expenses are significant — financing on credit, works, management fees. But this is no absolute truth: only a calculation based on your situation can settle the matter.
Depreciation under the régime réel: a key mechanism
Depreciation is often what makes the régime réel attractive. The idea: a property and its furniture theoretically lose value over time. The régime réel allows you, under certain conditions, to deduct each year a fraction of this “wear and tear” as an expense, even though it isn’t a cost you actually pay out.
In practice, depreciation is generally calculated separately for:
- the building (excluding the value of the land, which is not depreciated);
- the various components of the property according to their useful life;
- the furniture and equipment.
This depreciation is deducted from your revenue and can considerably lower, or even eliminate, your taxable result in certain years. Be careful, though: the calculation methods are technical and tightly regulated, and their treatment upon resale may change depending on the rules in force. Don’t dive into depreciation calculations without validation by a professional: a mistake can be costly, both each year and at the time of sale.
The forms and where to declare
Once your regime is determined, the declaration mechanics differ:
- Under micro-BIC, you generally report your revenue on the supplementary income return (form of the 2042-C-PRO type), in addition to your usual income tax return.
- Under the régime réel, you first file a tax return package (income statement and its schedules), then carry the resulting figure over to your supplementary income return.
Social levies generally apply on top of income tax, on the profit generated. Depending on your revenue level and your status, specific social contributions may also come into play: this is a point to clarify on a case-by-case basis, since the thresholds triggering these obligations shift with each reform.
The form numbers mentioned here may be changed by the tax authority: always check the up-to-date references on impots.gouv.fr when you declare.
Anticipating deadlines and staying organised
The annual income declaration usually takes place in spring, according to the schedule published each year by the tax authority. If you’re under the régime réel, the tax return package has its own deadlines, often distinct from those of the personal income tax return. It’s therefore better to plan ahead with your accountant rather than discovering a deadline the day before.
A few good habits throughout the year:
- centralise your supporting documents (rents collected, expenses, invoices, concierge fees) as soon as they arrive;
- track your revenue continuously to anticipate a possible change of regime;
- keep your documents for several years, as the tax authority may request them later;
- review your situation each year with a professional, because both your circumstances and the regulations evolve.
Clear, regular tracking of your income and expenses makes the declaration far simpler when the time comes. This is precisely where structured management of your rental saves time. Our concierge service for owners provides you with a clear report of the income and expenses tied to running your property, which you can pass on to your accountant.
Specific points to watch in the overseas territories
In the Antilles-French Guiana region, certain local factors may add to the general logic: incentive schemes specific to the overseas territories, particularities linked to tourism, or local constraints. These aspects deserve a dedicated review.
To go further on furnished-rental taxation in the overseas territories, see our article on LMNP taxation and furnished rentals overseas, as well as the one devoted to overseas tax relief and the Girardin scheme. Keep in mind, however, that these schemes are governed by strict and changing conditions: never commit on the basis of a general article alone.
⚠️ Important reminder. Furnished-rental taxation is a technical and shifting field. The thresholds, rates, allowances and depreciation rules can change from one year to the next. This article in no way replaces the advice of a chartered accountant or the tax services. For any decision (choice of regime, depreciation calculation, LMNP/LMP status), have your situation validated by a professional and rely on the official information from impots.gouv.fr.
In summary
Declaring your furnished rental income comes down to: (1) declaring your activity and obtaining a SIRET number, (2) choosing between micro-BIC and the régime réel, (3) understanding the value of depreciation under the régime réel, (4) using the right forms, and (5) meeting the deadlines. All while keeping a rigorous organisation and professional support.
At Hostel Toucan, our role lies in the operation of your property — management, welcoming guests, maintenance and clear reporting of income and expenses. We do not provide personalised tax advice, but we make it far easier to gather the information needed for your declaration. Want a clearer picture of how to manage your rental? Contact us or discover our owners’ concierge service.