The Micro-Landlord Scheme: Simplicity Above All
The micro-foncier regime applies automatically to landlords whose annual gross rental income does not exceed €15,000.
Under this system:
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rental income is declared on a simplified basis,
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a flat-rate deduction of 30% is automatically applied to cover expenses,
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taxation applies to the remaining 70% of the income.
Main advantage: simple and automated management.
Limitation: no deduction of actual expenses is possible, even if they exceed 30%.
This regime may be suitable for landlords with low expenses and limited management complexity.
The Real Tax Regime: An Optimized Approach to Rental Income
The real regime applies to:
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investors receiving more than €15,000 in annual rental income,
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or those who voluntarily opt for this regime.
Under this system, landlords declare their net rental income after deducting actual property-related expenses, including:
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property management fees,
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insurance premiums,
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property tax (taxe foncière),
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non-recoverable condominium charges,
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renovation and maintenance expenses,
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mortgage interest linked to property financing.
When deductible expenses exceed rental income, the landlord generates a property deficit (déficit foncier).
Property Deficit: A Powerful Tax Lever
The property deficit allows:
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deduction of up to €10,700 per year from overall taxable income,
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carryforward of any excess onto rental income for the following 10 years.
The real regime is particularly well suited to long-term wealth strategies, properties requiring renovation, or highly taxed landlords seeking to optimize their real estate taxation.
Micro-Landlord or Real Regime: How to Decide?
Even if you qualify for the micro-foncier regime, you may opt for the real regime when filing your tax return.
This option is particularly relevant when:
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your actual expenses exceed 30% of rental income,
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you are undertaking significant renovation works,
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you wish to optimize your real estate tax strategy.
Important: opting for the real regime is irrevocable for three years and then renews automatically.