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

Autumn is here, and with it comes the traditional flurry of budget debates in Parliament. This year, discussions surrounding the Finance Bill (PLF) are raising many questions for hosts. Indeed, the 2027 Finance Bill furnished rental topic is at the heart of concerns for those renting out part of their primary residence. At Roomlala, we know how complex and stressful tax matters can seem. That is why we have decided to break down the stakes 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 projects. While members of parliament debate, discover everything you need to know to continue renting out your guest room with complete peace of mind and optimize your additional income.

Understanding the stakes of the 2027 Finance Bill for homestay furnished rentals

The 2027 Finance Bill (PLF), presented at the end of September 2026, represents a decisive deadline for French fiscal policy. For hosts, autumn announcements are often synonymous with uncertainty, especially regarding property taxes. The 2027 Finance Bill furnished rental query is on everyone's lips, as parliamentary debates must decide on the extension of certain historical tax benefits. However, it is essential to distinguish between media buzz and the reality of the legislation currently under discussion.

Read also: 2026 Housing Act: What changes for room rentals in Spain, 2026 Property Tax: How renting out a homestay can lower your bill 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 things up by suggesting a tightening of the overall taxation on furnished rentals. Members of parliament 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 exemption linked to renting a room in a homestay is absolutely not the primary target of these reform proposals. Public authorities draw a very clear distinction between pure rental investment and the social 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 taxes on 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 optimization of existing space. It is therefore highly unlikely that the government would decide to abruptly scrap this mechanism, especially as it promotes housing for students and seasonal workers, two populations that are particularly vulnerable in the current real estate market.

The expected maintenance of the tax exemption

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

Why you should not give in to panic in the face of announcements

Every autumn, amendment proposals multiply in Parliament, sometimes creating a stressful 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 rumors or isolated proposals. The taxation on renting part of one's primary 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 force.

2026 long-term rental taxation: 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 the rental or sub-rental of part of your primary residence is already guaranteed until December 31, 2026. This legal certainty allows you to plan your rentals for the coming year without fearing an unexpected tax audit. 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 rented room and how your tenant uses it. For the exemption to apply, the room must be the tenant's primary residence. There is, however, a notable and very useful exception: the room can also be the tenant's temporary residence if they can prove they have a seasonal employment contract. At Roomlala, we see many hosts taking advantage of this flexibility to welcome agricultural workers in summer or ski resort staff in winter, while maintaining their tax advantage. In addition, the rented room must be adequately furnished, offering the tenant all the necessary comfort for daily living (bed, bedding, storage furniture, lighting, etc.).

The second criterion, and arguably the one most monitored by the tax authorities, concerns the rent amount 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 take into account inflation and real estate market trends. It is your responsibility to ensure that the rent you charge does not exceed these maximum amounts, at the risk of losing the entire exemption.

Conditions to benefit from the homestay tax exemption

To summarize, the homestay tax exemption relies on an essential triptych. Firstly, the room(s) rented must be an integral part of your own primary residence. You cannot apply this regime to a secondary residence or an outbuilding that is totally detached from your home. Secondly, the rental must meet the primary (or seasonal) housing needs of the tenant. Finally, the rental price must remain below the legal caps. If you check these three boxes, the income generated by this rental does not even need to be declared on your annual income tax return!

2026 rent tax cap: Key figures to respect

The 2026 rent tax cap has been officially communicated and it is essential to memorize it. For income received in 2026, the annual cap for rent excluding charges is €215 per square meter of living space in the Île-de-France region, and €159 per square meter in other French regions. Let's take a concrete example: if you live in Bordeaux (outside Île-de-France) and you rent 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 a 15 m² room, the annual cap will be €3,225 (i.e., 15 x €215), or approximately €268.75 per month excluding charges.

Traps to avoid to secure your rental income

While the Article 35 bis CGI mechanism is highly attractive, it also includes strict rules that do not allow for any approximation. At Roomlala, we support hosts daily and we notice that certain errors recur frequently. The first mistake is miscalculating the living area of the rented room. Only the 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 meters must 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 meter are strictly exclusive of charges. It is therefore imperative, when drafting your rental agreement on our platform, to clearly distinguish between the amount of the principal rent and the flat rate (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 rent, which would automatically make you exceed the authorized cap.

Finally, it is vital to keep all proof of the compliance of your rental. Carefully keep a copy of the lease (easily generated via Roomlala), the 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 strictly respect the exemption conditions and that you are a host in good faith.

Exceeding the cap: a major tax risk

Respecting the caps is of absolute rigor. It is important to understand 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: the taxation of all 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 must be declared in the Industrial and Commercial Profits (BIC) category and will be subject to income tax as well as social contributions.

Do not confuse long-term rental with tourist guest rooms

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

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

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

At Roomlala, we firmly believe that intergenerational cohabitation and homestay rentals are the solutions of the future to the housing crisis affecting France. By opening your doors, you allow a student to pursue 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 accountable. And for this experience to be a complete success, our platform is designed to simplify your life at every stage of your rental project.

We know that starting to rent can spark fears: 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 community of trust. You benefit from secure tools to interact with candidates, verify their profiles, and sign your contracts with full legal standing. Do not let the political debates of autumn hold back your projects. The current legal framework is extremely favorable to you, so do not 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 optimization: You give a new lease on life to a room left empty after your children moved out or following a life change.
• Social connection: 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 risks of unpaid rent.
• Legal support: We provide you with lease templates in compliance with current legislation, incorporating the specificities of homestay rentals.
• Dedicated customer service: Our team is at your disposal to answer all your questions, whether they are fiscal or practical.