Buying to Rent Furnished in Paris: Guide

Buying an apartment in Paris to rent it furnished generates a gross yield of 3 to 5% in 2026, 15 to 30% higher than unfurnished rental. The LMNP regime (Non-Professional Furnished Rental) allows you to depreciate the property and furniture, reducing taxation on rental income. Rent control and change-of-use rules nevertheless regulate this strategy in Paris.

Introduction

Furnished rental in Paris represents a constantly growing segment, driven by professional mobility, expatriation, and student demand. In 2026, approximately 25% of Parisian rentals are furnished, a proportion that reaches 40% in central arrondissements.

For the investor, furnished rental offers a double advantage: higher rents and more favourable taxation thanks to the BIC regime. But Parisian regulations impose specific constraints that must be mastered. Our property hunters have been supporting investors in this niche since 2011. This guide details the financial, tax, and regulatory parameters of furnished rental in Paris.

Table of contents

• Does furnished rental pay more than unfurnished in Paris?
• LMNP or LMP: which tax regime applies to you?
• How does depreciation work in furnished rental?
• What rules govern rent and the furnished lease in Paris?
• Do you need a change-of-use authorisation to rent furnished?
• How do you pick the right property for furnished rental?

Does furnished rental pay more than unfurnished in Paris?

Yes, 15 to 30% more rent in Paris, and more still in net yield after tax. A 40 sqm one-bedroom in the 11th arrondissement purchased for 380,000 euros all-in rents for around 1,100 euros a month unfurnished, a 3.5% gross yield, against 1,350 to 1,500 euros furnished, a gross yield of 4.3 to 4.7%.

The rent supplement for furnishings is permitted under certain conditions, and it is what explains that gap.

The gap widens further on a net basis. For unfurnished rental under the real regime, the taxable result (rents minus deductible expenses) is taxed at the marginal income tax bracket plus 17.2% in social contributions. For furnished rental under the real BIC regime, the depreciation of the property and furniture can erase virtually all of the taxable result in the early years, generating a significantly higher net yield.

On a 380,000-euro investment, the annual difference between unfurnished and furnished can reach 3,000 to 5,000 euros in additional net income. Compounded over fifteen years, this represents a cumulative gain of 45,000 to 75,000 euros.

LMNP or LMP: which tax regime applies to you?

LMNP as long as your rental receipts stay below 23,000 euros a year or below your other professional income, LMP once both thresholds are crossed together. LMNP covers almost every Parisian investor holding one or two apartments.

The status therefore depends solely on your revenue level, and it determines your whole tax treatment.

LMNP (Non-Professional Furnished Rental) applies when your annual rental receipts are below 23,000 euros or do not exceed your other professional income. This is the most common status for Parisian investors renting one or two apartments. Income falls under BIC and benefits from either the micro-BIC regime (50% flat-rate allowance under 77,700 euros in receipts) or the real regime (deduction of actual expenses and depreciation).

LMP (Professional Furnished Rental) applies once both cumulative conditions are met: receipts exceeding 23,000 euros AND exceeding other household income. LMP grants the right to offset losses against total income (with no cap) and capital gains exemption after five years of activity (subject to revenue conditions). In return, income is subject to self-employed social contributions (approximately 35 to 45% of profit).

In 2026, the choice between micro-BIC and the real regime merits a detailed simulation. Micro-BIC is straightforward but may be less advantageous than the real regime for recently acquired properties with high depreciation. Our mortgage insurance guide and our guide on the TEG complement the analysis of financing costs to factor in.

How does depreciation work in furnished rental?

It deducts, in accounting terms, the wear and tear on the property and furniture from the taxable result, with no cash outflow whatsoever. For an apartment purchased for 380,000 euros with 15,000 euros in furniture, that comes to approximately 12,000 to 14,000 euros a year, absorbing a significant portion of the rents collected.

This is the mechanism that makes furnished rental so attractive for investors.

Under the real BIC regime, the property (excluding land, estimated at 15-20% of the value in Paris) is depreciated over 25 to 30 years. Furniture is depreciated over 5 to 10 years depending on the items.

2025-2026 update: the 2025 Finance Act introduced a major change for LMNP holders. Depreciation deducted remains a tax advantage on current income, but it is now reintegrated into the capital gains calculation on resale for properties acquired after February 2025. In practice, the taxable capital gain on resale will be calculated on the acquisition price minus the depreciation claimed, which mechanically increases the exit tax.

This reform does not undermine the case for furnished rental in Paris, but it changes the profitability equation over the long term. The tax advantage is now more of a tax deferral than a permanent saving. For investors planning very long-term ownership (over 22 years), the length-of-ownership allowances on capital gains partially offset this reintegration.

What rules govern rent and the furnished lease in Paris?

Rent control applies to furnished rental exactly as it does to unfurnished: the rent cannot exceed the enhanced reference rent for the geographic sector, published each year by the prefecture. The furnished lease itself runs for a minimum of one year (nine months for a student), with tenant notice cut to one month.

The property must also carry every item on the equipment list set by the decree of 31 July 2015, failing which the lease can be reclassified as unfurnished.

The lease is tacitly renewable, and the tenant can give notice with one month’s notice, compared to three months for unfurnished. This increased flexibility for the tenant translates into more frequent turnover, a parameter to factor into the profitability calculation (refurbishment costs, vacancy between leases).

That mandatory equipment list comprises: bedding with duvet or blanket, window blackout devices, hob, oven or microwave, refrigerator, freezer (or compartment), crockery, cooking utensils, table, seating, light fittings, and cleaning equipment. A property that does not meet this list cannot be classified as furnished, and the lease could be reclassified as unfurnished.

The property price analysis by arrondissement identifies the areas where the gap between unfurnished and furnished rent is most favourable.

Do you need a change-of-use authorisation to rent furnished?

Not for long-term furnished rental on a minimum one-year lease: the property stays classified as residential and only the rental mode changes. In Paris, change-of-use authorisation, with mandatory compensation, applies only to short-term rental of a second home.

That distinction is the main source of confusion for investors. Here are the three situations.

Long-term furnished rental (minimum one-year lease): no change-of-use authorisation is needed. The property remains classified as residential; only the rental mode changes. This is the simplest and safest framework for the Parisian investor.

Short-term furnished rental (Airbnb-type, duration under one year): a change-of-use authorisation is mandatory in Paris for second homes. This process involves compensation (converting a commercial premises into housing in the same arrondissement), priced at 300 to 500 euros/sqm in the central arrondissements, or 12,000 to 20,000 euros for a 40 sqm flat. For primary residences, short-term rental is limited to 90 nights per year since 1 January 2025, without change of use.

Mobility lease (one to ten months, non-renewable): no change of use required. This lease, intended for people in training, studying, on internships, or on temporary assignments, offers useful flexibility for investors who wish to recover their property at regular intervals.

In practice, the vast majority of furnished rental investors in Paris opt for the standard one-year lease, which requires no special authorisation and provides a stable legal framework.

How do you pick the right property for furnished rental?

On three criteria: proximity to transport and employment hubs, a size suited to demand (studios and two-bedrooms for young professionals, three-bedrooms for expatriate families), and a condition that allows quality furnishing without major works. Profitability depends as much on the property as on the tax regime.

Location, size, condition and layout do indeed determine the achievable rent and the vacancy rate.

The central arrondissements and peripheral business districts concentrate furnished rental demand. The 8th arrondissement, the 16th arrondissement, and the 17th arrondissement attract a corporate clientele willing to pay high rents for quality furnished properties.

Our rental investment service includes projected yield analysis, LMNP/LMP tax simulation, and introductions to furnishing and property management providers. For international investors, our expat service ensures complete project coordination from abroad.

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Looking to invest in furnished rental in Paris? Our property hunters identify high-rental-potential properties and optimise your acquisition strategy. Contact Home Select for a personalised assessment.