TLDR: The micro-foncier regime applies by default if your annual gross rental income does not exceed €15,000, but it excludes properties benefiting from special regimes (e.g., Duflot, Pinel, Scellier, old Borloo, Cosse), historic monuments or properties labeled by the Fondation du patrimoine, as well as FPI shares without bare rental. It imposes a flat-rate allowance of 30% with no additional deductions and prohibits the recognition of rental deficits during its application, except for the carry-forward of previous deficits.
Gross rental income limit
The micro-foncier regime is reserved for taxpayers whose total annual gross rental income does not exceed €15,000. Beyond this threshold, the actual regime applies compulsorily.
Exclusions related to special regimes
You cannot benefit from the micro-foncier regime if you rent out properties eligible for derogatory schemes such as:
- Intermediate rental investments (Duflot, Pinel);
- Scellier, Besson, Robien, Périssol schemes;
- Housing approved by ANAH (old Borloo, Cosse);
- Tax reductions for tourist residences or work on tourist accommodation.
The exclusion applies only during the period in which the benefit of these schemes is claimed.
Exclusions related to historical or labeled heritage
The regime is also excluded for:
- Buildings classified or listed as historic monuments;
- Properties that have received the Fondation du patrimoine label, if you claim the benefit of the derogatory regime under Article 156, 3° of the CGI.
Exclusions related to FPI shares
The micro-foncier regime does not apply to shares in real estate investment funds (FPI) if you are not the owner of a building given for bare rental.
Flat-rate allowance and absence of deductions
Under this regime, your taxable net rental income is calculated by applying a flat-rate allowance of 30% to the gross income. This allowance covers all expenses and prohibits any specific deductions (works, loan interest, etc.).
Prohibition on recognizing rental deficits
You cannot recognize rental deficits during the application of the micro-foncier regime. However, previous deficits (recognized before the adoption of the regime and still carry-forwardable as of January 1 of the first year of application) may continue to be offset against net rental income, within the limit of the following 10 years, according to the common law rules.
General scope of application
The regime applies to all taxpayers whose rental income (direct or indirect) is taxable in the category of rental income, subject to the exclusions expressly provided by law.