Is it more tax-efficient to rent unfurnished or furnished

Taxation is undoubtly more favorable for furnished rentals.

The flat-rate plan allows a 50% relief on rental income (instead of 30% for unfurnished rentals) and the « régime réel » plan allows amortization significantly reducing and sometimes even annulling the taxable base (not applicable to unfurnished rentals)

Nevertheless, even if the fiscal aspect is decisive other criteria need to be considered when choosing between renting furnished or unfurnished (see section B.1)

However, the choice between furnished and unfurnished rentals can not solely be  determined by tax considerations : other factors are to be taken into consideration:

• The budget and time required to furnish the property
• The timeframe in which you wish to recover your property (the furnished rental lease is for 1 year and the unfurnished rental lease is for 3 years)
• The market situation : oversupply of   furnished rentals vs shortage of unfurnished properties