Professional furnished-rental landlord (LMP)
Professional Furnished Rental Landlord (LMP) status applies when annual furnished-rental receipts exceed €23,000 and surpass the household's other professional income. It allows deficits to be offset against total taxable income without a cap, making it a powerful tax lever for high-income real-estate investors.
Key points
- Two-part threshold: receipts > €23,000 AND exceed the household's other professional income.
- Rental deficits offset against total income with no annual cap.
- Capital-gains exemption possible after 5 years of LMP activity, subject to conditions.
- Mandatory social-insurance contributions (TNS or general scheme depending on main activity).
- Property and furniture depreciation deductible under the BIC actual-expense regime.
Frequently asked questions
What is the difference between LMP and LMNP?
Non-professional furnished rental (LMNP) status applies when at least one of the two LMP thresholds is not met. The key difference is that LMNP deficits can only be carried forward against future furnished-rental BIC income for ten years, whereas LMP deficits reduce total taxable income immediately.
Does LMP status apply automatically or must it be declared?
LMP status applies automatically the moment both income conditions are met in the same tax year. No formal election is required, but the taxpayer must correctly declare income under the BIC category and, where applicable, register with the appropriate social-insurance body.
How does LMP status influence a real-estate financing plan?
A broker reviewing an LMP investor's file can highlight the full deficit-offset capability to justify a lower net savings effort, which improves the apparent debt-to-income ratio. Depreciation reduces the tax base without affecting cash flow, helping keep monthly repayments manageable.
In practice
Marie earns €45,000 in salary and €30,000 in annual furnished-rental income. Both LMP thresholds are met, so she offsets a €12,000 deficit (charges and depreciation exceeding receipts) directly against her salary, reducing her total taxable income to €33,000 without any carryforward.
Official sources
- Tax regime of the professional furnished landlord (LMP) · Entreprendre.Service-Public.gouv.fr
- Housing and financing information · ANIL
- Mortgage credit (official guide) · Service-Public.gouv.fr