Airbnb tax in Nice: micro-BIC, real regime, and LMNP explained

Airbnb tax in Nice: micro-BIC, real regime, and LMNP explained

Short-term rental taxation is one of the most misunderstood topics by owners starting out. Many choose a default regime, do not know they can switch, or ignore the tax consequences of their rental strategy. The difference between a good and poor regime choice can mean thousands of euros per year.

This article summarizes the main options, conditions, and implications. It does not replace specialist accountant advice: your property situation, income level, ownership structure, and long-term plan must be validated case-by-case.

Direct answer: which regime to choose?

For furnished tourism rental in France, owners fall under LMNP (Non-Professional Furnished Rental Owner) or LMP (Professional Furnished Rental Owner) status. Within LMNP, two tax regimes exist:

• Micro-BIC: automatic flat deduction on income. Simple to file, no detailed accounting.
• Real regime: deduction of actual expenses plus property and furnishing depreciation. Accounting required but often more tax-advantaged.

The right choice depends on annual rental income, expense level, and your property strategy. For a Nice property generating 25,000 to 50,000 euros annually with significant expenses, the real regime is almost always more profitable than micro-BIC.

LMNP status in detail

LMNP status applies as long as rental income does not exceed 23,000 euros per year or stays below other household income. Beyond this, the owner shifts to LMP with different rules (social charges, professional BIC declaration).

Under LMNP, two regime choices are possible:

• Micro-BIC: applicable if annual income is under 77,700 euros (classified tourism rental) or 15,000 euros (unclassified in 2026). The flat deduction is 50% for classified and 30% for unclassified.
• Real regime: available by option, open at any income level. Allows deduction of actual expenses and property depreciation.

Why real regime often wins

For well-managed short-term rental, deductible expenses are numerous: concierge commission, cleaning, linens, supplies, platform fees, internet, utilities, appropriate home insurance, property tax, co-owner fees, mortgage interest if financed.

Add to this accounting depreciation: the property itself (excluding land) is depreciated over 25-30 years, furnishings over 5-10 years. This depreciation is not actual cash outflow but a deductible expense often able to eliminate taxable income entirely in early years.

On a property generating 30,000 euros annual gross income, 50% micro-BIC leaves 15,000 euros taxable. Real regime, after expense and depreciation deductions, might reduce this same taxable income to 2,000-3,000 euros or zero if expenses and depreciation are substantial.

Furnished tourism classified status

Getting your furnished rental classified (1 to 5 stars by an accredited body) offers three tax advantages:

• Micro-BIC deduction raised to 50% (instead of 30% unclassified) under 77,700 euro ceiling.
• Potential tax credit for classified properties in high-demand zones (under conditions).
• Enhanced reputation with travelers and platforms.

Classification costs vary by body (typically 150-400 euros) and remains valid 5 years. The process is simple and ROI nearly immediate for most properly equipped properties.

Mandatory Nice filing

Regardless of tax regime, all owners renting short-term in Nice must:

• File with town hall via Nice Côte d'Azur Metropole teleservice, which issues a registration number to display on all listings.
• Request change of use if the property is not primary residence (with possible compensation per district).
• Remit overnight tax to the Metropole (collected by Airbnb and Booking but manual for direct bookings).

See the guide short-term rental regulations Nice for more detail.

When to switch to real regime?

The switch from micro-BIC to real regime is done by option with tax authorities, ideally before starting or at fiscal year start. The option is valid minimum 2 years, then renews automatically.

Four indicators suggest real regime is more advantageous:

• Annual income over 20,000 euros.
• Actual expenses over 40% of income.
• Recent property acquisition (good depreciation).
• Active mortgage (deductible interest).

A specialist LMNP accountant can run the comparative simulation in hours and guide you with certainty.

And VAT?

Furnished tourism rental without ancillary hotel services is VAT-exempt. VAT applies only if the rental includes at least three ancillary services (breakfast, regular mid-stay cleaning, bed linens, personalized welcome). In this case, the owner invoices VAT to guests and collects/remits, significantly complicating management.

Most standard Airbnbs thus stay VAT-exempt even with concierge handling between-guest cleaning (between-stay cleaning is not an ancillary service).

Our role in your taxes

Hostias is a concierge specialized in operational execution, not accounting. We do not provide personalized tax advice. We do provide monthly detailed summaries of collected income, operating costs, and commissions in format directly usable by your accountant.

If you are starting without an accountant, we can point you to Nice-based LMNP specialists. For structural questions (regime choice, SCI setup, tax optimization), professional advice is essential.

For an estimate of expected gross income on your property, request a free simulation. These figures serve as the basis for your tax simulation.