Furnished or Unfurnished Rentals? Maximize Your Investment Returns in Bordeaux

Rental investment in Bordeaux is increasingly attracting property owners who want to secure their assets while seeking optimal returns. However, in a context where real estate taxation is constantly evolving, choosing the right tax regime can be a real challenge. Added to this are recent reforms and local regulations that make this decision even more complex.

Whether you opt for unfurnished rental, non-professional furnished rental (LMNP), professional furnished rental (LMP), or short-term rental, each regime has its own advantages and tax constraints. In this article, BARNES Bordeaux offers a comprehensive analysis of the different tax regimes for renting out your property.

Unfurnished rental: simple management but more restrictive taxation

Unfurnished rental remains a classic choice for investors in Bordeaux. This regime consists of renting a property without furniture for primary residential use. Its main advantage is ease of management.

Tax regimes applicable to unfurnished rentals

The tax regime for unfurnished rentals depends on the rental income generated. If it does not exceed €15,000 per year, the micro-foncier regime applies, allowing a flat-rate deduction of 30% on the rent received without having to justify expenses. If income exceeds this threshold, the owner must opt for the real regime, which allows deduction of actual expenses (repairs, loan interest, management fees).

Tax disadvantages of unfurnished rentals in Bordeaux

Despite its simplicity, unfurnished rental can be taxingly restrictive, especially in a city like Bordeaux, where rents in popular areas such as Caudéran or the city center are high. Rents are subject to income tax (up to 45%) and social contributions (17.2%). Moreover, unlike other regimes, property deficits cannot be deducted from global income except under strict conditions.

BARNES Bordeaux’s opinion: although unfurnished rental is simple to manage, it presents a relatively heavy tax burden, which can limit its attractiveness compared to other forms of rental, such as furnished rental.

Furnished rental: a favorable tax regime for Bordeaux investors

Furnished rental is particularly attractive for investors in Bordeaux. Unlike unfurnished rentals, it allows offering a fully equipped property, attracting a wider range of tenants, from students to business professionals.

Tax regimes for furnished rentals

For furnished rentals, rent falls under the BIC (industrial and commercial profits) regime. Investors can choose between two options: micro-BIC and the real regime. The micro-BIC applies when annual rental income is below €23,000, offering a flat-rate deduction of 50% (or 30% for unclassified furnished rentals), simplifying tax management. This regime applies to both LMNP and LMP statuses.

The real regime, often more advantageous, allows deduction of actual maintenance expenses, works, and depreciation of the property and furniture. It can be chosen by both LMNP and LMP. It is particularly suited for investors aiming to maximize tax deductions, especially if income exceeds €23,000 or for those with significant expenses to deduct.

Tax advantages of furnished rentals in Bordeaux

In Bordeaux, neighborhoods such as Chartrons or Saint-Seurin have strong demand for furnished rentals. Depreciation of the property and furniture can significantly reduce taxation, even neutralizing a large part of rental income. For those choosing the real regime, it is a genuine tax optimization strategy.

BARNES Bordeaux’s opinion: furnished rental offers a much more favorable tax framework than unfurnished rental, particularly due to the ability to deduct numerous expenses and depreciate the property. In Bordeaux, where demand for furnished accommodation is high, this type of investment can provide attractive returns and optimized tax management.

Comparative summary of rental tax regimes in Bordeaux

Type of rental	Tax regime	Conditions	Tax advantages	Disadvantages	Impact on profitability
Unfurnished rental	Micro-foncier / Real regime	Rental income < €15,000	Flat-rate deduction of 30%	Cannot offset property deficit against global income	Moderate profitability with limited tax optimization
Furnished rental (micro-BIC)	Micro-BIC (< €23,000)	Annual rental income < €23,000	50% deduction on rents	Limited to small income	Interesting profitability but simplified
Furnished rental (real regime)	Real regime (> €23,000)	Annual rental income > €23,000	Deduction of actual expenses, depreciation of property and furniture	Complex accounting and administrative management	Maximization of profitability through depreciation and deductions

BARNES Bordeaux support

Bordeaux, with its growing real estate market, requires a thorough understanding of local tax regulations. Strong rental demand in areas such as the city center, Chartrons, or Caudéran makes furnished rental particularly profitable, but these options are subject to strict rules and local taxes.

If you are considering purchasing a property in Bordeaux to rent out, our consultants are available to analyze your project in detail and provide guidance. Upstream, our agency adds real value: we help optimize your tax strategy taking local specifics into account and offer complete support. Thanks to our expertise, you can assess project viability, identify suitable properties, choose the right neighborhoods, and select the optimal rental regime. If you wish to put your property on long-term rental in Bordeaux, we also offer a property management service to make the process easier.

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