The rule: Taxation of furnished rental activity.

The French professional tax is not available for a landlord of an empty property.

The landlord who rent furnished must pay the professional tax in normal conditions. But tax can be avoided if:

• You rent furnished accidentally (without regular period) a part of your personal habitation.

• You rent furnished a part of your main residence (even if it is regular) on the condition that the amount of the rent is kept reasonable, and the space rented is the main residence of the leaseholder (it is the same exemption as for the income tax).

• You rent a part of your personal habitation as a countryman gite.

• You rent a part of your personal habitation under leaseback development within the conditions provided by the law.

• You rent to a professional leaseholder who sublet. NB: a contract with a real estate agency is not sufficient to avoid professional tax.

The exemption of French professional tax is automatic. But, the town council may cancel the right of exemption of points 3), 4) & 5).

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