Declaring rental income: the form 2044 guide

Micro-foncier or actual-expenses regime: which one to choose?

Rent from an unfurnished (non-furnished) letting is taxed as property income. Two regimes coexist: the micro-foncier, flat-rate and simplified, and the actual-expenses regime, which lets you deduct the costs you actually incur. The right choice depends on the level of your expenses.

Eligibility threshold — Micro-foncier : Gross property income ≤ €15,000 per year · Actual-expenses regime : > €15,000 per year, or by election (3-year commitment)

Treatment of expenses — Micro-foncier : Flat-rate 30% allowance · Actual-expenses regime : Deduction of actual expenses (works, interest, insurance, property tax…)

Filing form — Micro-foncier : Directly in box 4BE of the 2042 return · Actual-expenses regime : Form 2044 (or 2044 special), carried over to the 2042

Property deficit — Micro-foncier : Not possible · Actual-expenses regime : Offset up to €10,700 per year against total income

Best if — Micro-foncier : Few expenses, little or no works or loan · Actual-expenses regime : High works, loan interest or expenses (> 30% of rent)

Deductible expenses under the actual-expenses regime

Under the actual-expenses regime, you deduct from your rent the expenses actually paid during the year. The main ones are:

• Repair, maintenance and improvement costs (excluding construction, reconstruction or extension, which are not deductible)

• Loan interest and related costs (arrangement fees, guarantee, borrower's insurance)

• Insurance premiums (non-occupying landlord / PNO insurance, unpaid-rent guarantee / GLI)

• Property tax, excluding the household-waste share recoverable from the tenant

• Co-ownership charge provisions (adjusted the following year)

• Management and procedural costs: agency or accounting fees, bailiff fees, caretaker and concierge pay

• Flat-rate deduction of €20 per unit for other management costs

Construction, reconstruction or extension costs are never deductible from property income: where relevant, they form part of the property's cost basis.

The property deficit: cutting your tax through works

When your deductible expenses exceed your rent, the actual-expenses regime generates a property deficit. The portion of the deficit excluding loan interest is offset against your total income up to €10,700 per year, directly reducing your tax (this cap is raised to €21,400 for energy-renovation works that take a home out of the energy-sieve category, for expenses paid up to 31 December 2025).

Any excess deficit and the share linked to loan interest carry over against your property income for the following ten years. In return for the offset against total income, you must keep the home let until 31 December of the third year that follows.

How to declare, step by step

Property income received during a calendar year (from 1 January to 31 December) is declared the following year, together with your annual income tax return. The online service usually opens in April, with deadlines staggered by département (zones 1, 2 and 3) from May to early June.

1. Gather your supporting documents — Rent receipts and statements of rent collected, works invoices, loan amortisation schedule, property-tax notice, insurance certificates and co-ownership charge statements.

2. Total up income and expenses — Add up the rent actually collected during the year (income), then your deductible expenses if you are on the actual-expenses regime. The result, positive or negative, is your net property income.

3. Report on the right form — Under the micro-foncier, enter the gross rent amount in box 4BE of the 2042 (the 30% allowance is applied automatically). Under the actual-expenses regime, detail income and expenses on form 2044, whose result is carried over to the 2042.

4. Keep your records — Keep all your supporting documents for at least three years: this is the period during which the tax authorities can ask you to justify the amounts declared.