Short-Term Rental Taxes in Nice 2026: The Le Meur Law
Short-term rental taxes in 2026: micro-BIC, allowances, the réel regime and the Le Meur law applied to Nice and the French Riviera, explained with a worked example.
In 2026, short-term rental taxation in France was significantly tightened by the Le Meur law. For an unclassified tourist rental, the micro-BIC allowance dropped to 30% and the income ceiling to €15,000 per year; for a classified rental, the allowance stays at 50% with a far higher ceiling. In practice, in Nice as across the whole French Riviera, getting your property officially classified has become the number-one tax lever, and the choice between the micro-BIC and the réel regime can change your tax bill twofold. Here is what changed, explained simply, with a worked example.
Tax rules change regularly and every situation is unique: the information below is current at the date of publication, given for guidance only, and does not replace advice from a qualified accountant. When in doubt, refer to the official sources (impots.gouv.fr, service-public.fr).
What did the Le Meur law change for taxation in 2026?
The Le Meur law (law no. 2024-1039 of 19 November 2024) overhauled the taxation of tourist furnished rentals, for income earned from 1 January 2025. Its stated aim: to reduce the tax advantage of short-term letting and rebalance the market towards year-round rentals.
Two major changes directly affect short-term rental taxation in 2026. First, the micro-BIC flat-rate allowances were cut, especially for unclassified properties. Second, the depreciation deducted over the years is now added back when calculating capital gains on resale — an often-overlooked point that changes the long-term equation. Nice adds the strictest local framework in France on top: a 90-day-per-year cap for a primary residence and a mandatory registration number, which we detail in our guide to Airbnb rules in Nice.
Classified or unclassified: why it changes everything
This is now THE distinction that determines your tax bill. A classified tourist rental (rated 1 to 5 stars, after inspection by an accredited body) enjoys far gentler taxation than an unclassified one.
For an unclassified rental, the flat-rate micro-BIC allowance fell from 50% to 30%, and the income ceiling from €77,700 to just €15,000 per year. Above that, you are automatically moved to the réel (actual-costs) regime. In other words, on the Riviera, where a well-placed rental easily exceeds €15,000 in income, the unclassified micro-BIC is simply no longer an option.
For a classified rental, the allowance stays at 50%, with an income ceiling of around €77,700 (a threshold revalued periodically, raised to €83,600 under the latest revaluations). Classification costs €150 to €300 for five years — a modest expense that multiplies your ceiling and your allowance, and that also unlocks the flat-rate option for the tourist tax in Nice. It is today the most profitable tax reflex, and yet rarely triggered by owners who self-manage.
Micro-BIC or the réel regime: which to choose?
Take our reference example: a roughly 40 m² one-bedroom flat sleeping four, recently renovated and carefully furnished, in a central Nice neighbourhood. Well managed, it generates around €37,000 in rental income per year (see our article on how much an Airbnb earns in Nice). Here is how the three regimes play out on that basis.
| Tax regime | Income ceiling | Allowance / deduction | Taxable base on €37,000 |
|---|---|---|---|
| Unclassified micro-BIC | €15,000/year | 30% | Not eligible → moved to the réel regime |
| Classified micro-BIC | ≈ €77,700 | 50% flat-rate | ≈ €18,500 |
| Réel regime | None | Actual costs + depreciation | Often close to €0 |
Indicative ranges for the reference property (1-bed ≈ 40 m², sleeps 4, renovated, central Nice neighbourhood) — BMG portfolio data and local observations, 2026. Simplified calculations, excluding personal circumstances.
The micro-BIC is simple: you declare your income, the tax office applies the flat-rate allowance, and you are taxed on the rest. It suits small income and anyone who wants zero paperwork.
The réel regime requires bookkeeping (often via an accountant, whose fees are themselves deductible), but it allows you to deduct all your actual costs — loan interest, works, management fees, insurance — as well as depreciation of the property and furniture. The result: on a property with a mortgage or recent works, the taxable base frequently falls close to zero for several years. For a profitable short-term rental on the Riviera, the réel regime is very often the clear winner.
How much tax do you pay on a short-term rental in Nice?
Once the taxable base is set, it is added to your other income and taxed at your marginal income-tax rate, plus social levies, raised to roughly 18.6% from 2026 (up from 17.2% before, subject to the rules in force).
Take our classified Nice flat again, under the micro-BIC, with a taxable base of €18,500. For an owner in the 30% marginal bracket, the total tax approaches 30% + 18.6%, i.e. around 48.6% of that base — roughly €9,000. Under the réel regime, with depreciation and costs that bring the base down to a few thousand euros, the bill can be far lighter. That shows just how much the choice of regime, and prior classification, weigh on your real net yield.
Capital gains tax on resale has changed too
This is the quiet trap of the reform. Since 15 February 2025, the depreciation deducted during operation under the réel regime is added back when calculating the capital gain on resale (excluding service residences such as care homes or student residences). In plain terms: the tax you saved through depreciation can increase your taxable gain on the day you sell.
This does not make the réel regime less attractive — the allowances for length of ownership still apply, and the gain is exempt after 22 years (income tax) and 30 years (social levies). But it is a reminder that tourist-rental taxation should be considered over your holding period, not just year by year. A point to weigh with your adviser depending on your horizon.
What if I rent out my primary residence?
Good news: occasionally renting out your primary residence remains tax-efficient. In Nice, you can let it for up to 90 days per year (120 days in most other Riviera towns), and the income falls under the same micro-BIC regime. For a family renting their house in summer while they are away themselves, that is often a few very well-valued weeks — we cover this case in renting out your house while on holiday on the French Riviera. Here again, classification and the right regime maximise what you actually keep.
Want to know which regime and classification strategy maximise your property's net? Discover our turnkey owner management, designed by investors who have rented their own properties for more than seven years, or browse our rentals to see what we manage day to day.
Official sources
- Law no. 2024-1039 of 19 November 2024 (Le Meur law) — Légifrance (official text on the regulation and taxation of tourist rentals)
- Taxation of furnished rentals — service-public.fr (micro-BIC and réel regimes, thresholds and filing obligations)
- Furnished rentals — impots.gouv.fr (declaring furnished-rental income, allowances and the réel regime)
- Practical guide to tourist-rental regulation — ecologie.gouv.fr (classification, declaration and applicable obligations)
- Tourist tax — Nice Côte d'Azur Metropolis (rates by classification and reporting of nights)
Frequently asked questions
What allowance applies to a tourist rental in 2026?
Since the Le Meur law, the micro-BIC allowance is 30% for an unclassified tourist rental (with a €15,000 annual income ceiling) and 50% for a classified one (a ceiling of around €77,700, revalued periodically). Above these ceilings, the rental is automatically moved to the réel regime. Getting your property classified is therefore the main lever for keeping the favourable micro-BIC treatment.
Micro-BIC or the réel regime: which for a short-term rental?
The micro-BIC is simpler (a flat-rate allowance, no bookkeeping) and suits small income. The réel regime requires bookkeeping but lets you deduct all actual costs and depreciate the property and furniture, which often brings the taxable base close to zero for several years. For a profitable Riviera rental, which quickly exceeds €15,000 in income, the réel regime is frequently the more advantageous choice.
Should I get my tourist rental classified in Nice?
In the vast majority of cases, yes. For €150 to €300 in classification fees valid for five years, you multiply your micro-BIC ceiling, move from a 30% to a 50% allowance, and can opt for the flat-rate tourist tax. It is one of the most profitable decisions in short-term rental taxation, and it remains underused by owners who self-manage.
What is the social-levy rate on a furnished rental in 2026?
Social levies on furnished-rental income are around 18.6% from 2026 (up from 17.2% previously), subject to the rules in force. They are added to income tax calculated at your marginal rate. On a given taxable base, the total taxation therefore combines your marginal rate and these social levies.
Is selling a tourist rental taxed more since the Le Meur law?
Since 15 February 2025, depreciation deducted under the réel regime is added back when calculating the capital gain on resale (excluding service residences). This can increase the taxable gain, but the allowances for length of ownership still apply, with exemption from income tax after 22 years and from social levies after 30 years. Taxation should therefore be considered over your holding period.
How many days can you rent out a primary residence in Nice?
In Nice, a primary residence can be let as a tourist rental for up to 90 days per year (against 120 days in most other Riviera towns). The income falls under the micro-BIC regime on the same terms as a standard rental. It is a tax-efficient option for anyone renting their home for a few weeks, for example in summer while they are away themselves.
