2027 Finance Bill and furnished rentals: What hosts need to know this autumn

Autumn is here, and with it comes the traditional flurry of budget debates in Parliament. This year, discussions surrounding the Finance Bill are raising many questions among hosts. Indeed, the 2027 Finance Bill for furnished rentals is at the heart of concerns for those who rent out part of their main residence. At Roomlala, we know how complex and stressful tax matters can seem. That is why we have decided to break down the challenges of this 2027 budget for you. Our goal? To reassure you, inform you about the continuation of current tax exemptions, and support you in your rental ventures. As parliamentarians debate, discover everything you need to know to continue renting out your spare room with complete peace of mind and optimise your additional income.

Understanding the implications of the 2027 Finance Bill for homestay rentals

The 2027 Finance Bill, presented at the end of September 2026, represents a decisive deadline for French tax policy. For hosts, autumn announcements are often synonymous with uncertainty, especially regarding property taxation. The search for 2027 Finance Bill furnished rentals is on everyone's lips, as parliamentary debates must decide on the extension of certain long-standing tax benefits. However, it is essential to distinguish between media hype and the reality of the legislation currently under discussion.

See also: 2026 Housing Act: What changes for room rentals in Spain, 2026 property tax: How renting out a homestay can lighten the load and 2026 Mobility Lease: The ideal solution for renting a room to students and temporary workers

It is true that an information report from the National Assembly (report no. 3056 published in July 2026) stirred the pot by suggesting a tightening of the overall taxation for furnished rentals. Parliamentarians specifically pointed to the Non-Professional Furnished Rental (LMNP) status and its actual depreciation regime, which is sometimes considered too advantageous compared to unfurnished rentals. Nevertheless, at Roomlala, we want to reassure you: the social security exemption linked to homestay rentals is absolutely not the primary target of these proposed reforms. Public authorities make a very clear distinction between pure rental investment and the community-minded approach of opening up your own home.

In this context, the debate surrounding the 2027 Finance Bill should be followed with attention, but without panic. The measure that allows you to pay no tax on the rent received (governed by Article 35 bis of the General Tax Code) is a provision with a social purpose. It aims to mitigate the housing crisis by encouraging the optimisation of existing space. It is therefore highly unlikely that the government will decide to abruptly eliminate this measure, especially since it supports the housing of students and seasonal workers, two populations that are particularly vulnerable in the current property market.

The expected continuation of tax exemption

Historically, Article 35 bis of the CGI has always been extended by a few years during previous budget debates. The challenge of the 2027 Finance Bill is to extend this guarantee beyond its current end date of 31 December 2026. The signals sent by the public authorities are rather reassuring. The homestay tax exemption is seen as an effective tool to fight against housing shortages without requiring expensive new construction. We therefore invite you to remain confident about the longevity of this tax benefit, while keeping an eye on the final vote on the finance law, which will take place at the end of the year.

Why you shouldn't panic in the face of announcements

Every autumn, proposals for amendments multiply in Parliament, sometimes creating an anxious climate for hosts. It is crucial to understand that the majority of these amendments will never be adopted. At Roomlala, we advise you not to change your rental plans based on mere rumours or isolated proposals. The taxation of renting out part of your main residence is built on solid foundations. Continue to host your tenants with peace of mind, because until proven otherwise, the legal framework that protects and benefits you remains fully in effect.

2026 long-term rental taxation: A reminder of current rules

While waiting for the 2027 Finance Bill to be definitively voted on and enacted, it is essential to master 2026 long-term rental taxation. The good news is that the income tax exemption for renting or sub-letting part of your main residence is already guaranteed until 31 December 2026. This legal security allows you to plan your rentals for the coming year without fearing an unexpected tax reassessment. However, to benefit from this tax windfall, it is not enough to just rent out a room: you must scrupulously respect a set of criteria defined by the tax authorities.

The first fundamental criterion concerns the nature of the room rented and the use the tenant makes of it. For the exemption to apply, the room must constitute the tenant's main residence. There is, however, a notable and very useful exception: the room can also constitute the tenant's temporary residence if they can provide proof of a seasonal employment contract. At Roomlala, we see many hosts taking advantage of this flexibility to welcome agricultural workers in the summer or ski resort staff in the winter, all while keeping their tax benefit. Additionally, the rented room must be adequately furnished, offering the tenant all the necessary comfort for daily life (bed, bedding, storage furniture, lighting, etc.).

The second criterion, and arguably the most closely monitored by the tax authorities, concerns the amount of rent applied. The law requires that rent be set within so-called "reasonable" limits. Each year, the tax authorities publish an update of these tolerance thresholds via the Official Bulletin of Public Finances (BOFiP). For 2026, these caps have been re-evaluated to account for inflation and the evolution of the property market. It is your responsibility to ensure that the rent you charge does not exceed these maximum amounts, otherwise you risk losing the entire exemption.

Conditions for benefiting from the homestay tax exemption

To sum up, the homestay tax exemption relies on an essential triptych. Firstly, the room(s) rented must be an integral part of your own main residence. You cannot apply this scheme to a second home or an outbuilding completely detached from your dwelling. Secondly, the rental must meet the tenant's need for a main (or seasonal) residence. Finally, the rental price must remain below the legal caps. If you tick these three boxes, the income generated by this rental does not even need to be declared on your annual tax return!

2026 rent tax cap: Key figures to respect

The 2026 rent tax cap has been officially communicated and it is essential to memorise it. For income received in 2026, the annual rent cap excluding charges stands at €215 per square metre of living space in the Île-de-France region, and €159 per square metre in other French regions. Let's take a concrete example: if you live in Bordeaux (outside Île-de-France) and you rent out a 12 m² room, your annual rent excluding charges must not exceed €1,908 (i.e., 12 x €159), which corresponds to a maximum monthly rent of €159 excluding charges. If you are in central Paris and rent out a 15 m² room, the annual cap will be €3,225 (i.e., 15 x €215), or about €268.75 per month excluding charges.

Traps to avoid to secure your rental income

While the Article 35 bis CGI scheme is particularly attractive, it also includes strict rules that do not tolerate any approximation. At Roomlala, we support hosts daily and we notice that certain errors occur frequently. The first mistake is to miscalculate the living area of the rented room. Only the surface area of the private room (and possibly bathrooms if they are exclusively reserved for the tenant) with a ceiling height of at least 1.80 metres should be taken into account. Do not include common areas (living room, shared kitchen) in your rent cap calculation, as the tax authorities do not tolerate them in this specific calculation.

Another major point of vigilance concerns the clear separation between rent and charges. The caps of €215 and €159 per square metre are strictly excluding charges. It is therefore imperative, when drafting your rental contract on our platform, to clearly distinguish between the amount of the main rent and the fixed amount (or provision) for charges (water, electricity, internet, etc.). If you offer an "all-inclusive" rent without detailing it, the tax authorities could consider that the entire amount corresponds to the rent, which would automatically make you exceed the authorised cap.

Finally, it is vital to keep all proof of your rental's compliance. Carefully keep a copy of the lease (easily generated via Roomlala), rent receipts given to the tenant, as well as proof of your tenant's status (school certificate for a student, employment contract for a seasonal worker). In the event of a tax audit, these documents will be your best allies in proving that you are following the exemption conditions to the letter and that you are a host acting in good faith.

Exceeding the cap: A major tax risk

Respecting the caps is of absolute rigour. It must be clearly understood that there is no room for error or marginal tolerance. A breach, even a minimal one of a few euros over the year, leads to a devastating consequence: taxation of the entirety of the rent collected from the very first euro, and not just the excess portion. For example, if your annual cap is €1,908 and you receive €1,950 in rent excluding charges, the entire €1,950 will have to be declared under the category of Industrial and Commercial Profits (BIC) and will be subject to income tax as well as social contributions.

Do not confuse long-term rental with tourist guest rooms

It is essential not to confuse long-term rental (which is the subject of this article) with the rental of guest rooms intended for passing tourists. The tax rules are radically different. For guest rooms, tax exemption also exists, but its ceiling is extremely low: it is limited to only €760 per year (rent and additional services such as breakfast included). If you rent out your room to tourists for a few nights via short-term platforms, you will reach this cap in just a few weeks. Prioritising long-term rental with Roomlala is therefore the safest and most profitable strategy to provide tax relief for your rental income over the long term.

Why take the step into long-term rental with Roomlala today?

Faced with economic uncertainty and debates surrounding the 2027 Finance Bill, renting a homestay room remains an exceptional safe haven. It is one of the rare tax schemes that combines immediate profitability, legal security (at least until 2026), and social utility. By choosing to rent out an unused room in your home, you create tax-free additional income, ideal for coping with inflation, paying your energy bills, or financing your personal projects. But beyond the financial aspect, it is also a wonderful human adventure.

At Roomlala, we firmly believe that intergenerational cohabitation and homestay accommodation are the solutions for the future in the face of the housing crisis hitting France. By opening your doors, you allow a student to continue their studies in good conditions, or a young professional to start their career without being strangled by exorbitant rents. You actively participate in a sharing economy that is socially responsible and supportive. And for this experience to be a complete success, our platform is designed to make your life easier at every stage of your rental project.

We know that starting to rent out can raise concerns: fear of unpaid rent, apprehension about choosing a tenant, administrative complexity... That is where our expertise comes into play. By publishing your listing on Roomlala, you join a trusted community. You benefit from secure tools to exchange with candidates, verify their profiles, and sign your contracts with full legal compliance. Do not let the autumn's political debates hold back your projects. The current legal framework is extremely favourable to you, so don't wait any longer to take advantage of it.

A concrete response to the housing crisis

• Strong social impact: You concretely help students, interns, or seasonal workers find decent housing.
• Space optimisation: You give a new lease of life to a room that has been empty since your children left or following a change in life.
• Social ties: You break loneliness and create enriching exchanges with people from all walks of life.

Security and simplicity with Roomlala

• Maximum visibility: Your listing reaches thousands of qualified tenants looking for long-term accommodation.
• Secure payments: Our system guarantees the payment of your rent, protecting you against the risk of unpaid rent.
• Legal support: We provide you with lease templates that comply with current legislation, integrating the specifics of homestay rentals.
• Dedicated customer service: Our team is at your disposal to answer all your questions, whether they are fiscal or practical.