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.
