Micro-BIC (Industrial and Commercial Profits): Be sure to opt for the actual income tax system before the deadline for filing your tax return—don’t miss the boat.

As a general rule, you are subject to the micro-enterprise tax regime for income earned in 2025 if your 2024 or 2023 revenue is less than:

• €77,700, for income from services, non-commercial furnished rentals, and classified furnished vacation rentals
  • Your automatic deduction is 50%.
• €15,000, for income from unclassified furnished vacation rentals
  • Your automatic deduction is 30%.
• €188,700, for income from commercial sales and non-hotel accommodation activities
  • Your automatic deduction is 71 percent.

The question remains: Wouldn’t the actual tax system be more advantageous?

• If your expenses exceed the amount of the automatic deduction, it’s in your best interest to opt for the actual expense method.
• In that case, you deduct the actual amount of your income from all your expenses.
• Keep in mind that for furnished rental properties, you can deduct depreciation on the property in addition to operating expenses, which will drastically reduce the taxable base for rental income and often allows you to avoid paying income tax on rental income for 10 to 15 years.
• Drawback: You must keep all receipts for your expenses.

Please note: You must opt for the actual income tax system for 2025 income between May 22 and June 5 (the deadline for filing tax returns, which varies by department).

There are no specific formal requirements: You can make this selection directly through your impôts.gouv account.

For BIC income received in 2024, the deadline for electing this option has passed. The deadline was in May or June 2024 (depending on the taxpayer’s department). It is therefore no longer possible to elect this option for income received in 2024.

This option is valid for one year and is then automatically renewed on a year-by-year basis.