Non-professional furnished rental landlord (LMNP)
A tax status applicable to an individual letting one or more furnished properties whose rental income does not exceed €23,000 per year or 50% of total household income. Receipts fall under the BIC (commercial income) category, with the option under the real regime to deduct costs and depreciate the property, often reducing taxable income to zero. This status is highly sought after in wealth-building rental investment.
Key points
- Income is taxed under BIC, allowing asset depreciation under the real-cost regime.
- The threshold is €23,000 in receipts or 50% of total household income.
- Accounting depreciation often reduces the taxable base to zero without creating a cash loss.
- Resale triggers taxation under the private capital-gains regime, not the professional one.
Frequently asked questions
What is the difference between the micro-BIC and the real regime under LMNP?
The micro-BIC applies a flat allowance of 50% on receipts (71% for classified tourist furnished rentals) with no option to deduct actual costs. The real regime allows deduction of all actual costs (interest, works, co-ownership charges) and depreciation of the property and furniture. The real regime is generally more advantageous once actual costs and depreciation exceed the flat allowance.
How do banks factor LMNP status into creditworthiness analysis?
Banks generally factor in furnished rents with a 30% haircut, as with standard buy-to-let. Some banks consider the real tax regime when assessing self-financing capacity, particularly under the differential debt-ratio method. The broker presents the project's actual cash flow to give the bank the most favourable view of the file.
When does LMNP status become LMP (professional furnished landlord)?
The transition to LMP (professional furnished landlord) status occurs when annual furnished rental receipts simultaneously exceed €23,000 and represent more than 50% of the household's professional income. LMP offers additional advantages (deficit deductible from overall income, IFI exemption under conditions) but triggers social contributions on rental income.
In practice
An investor buys a furnished studio for €150,000 and earns €8,400 in annual rent. Under the real regime, depreciation of the property plus deductible costs bring the taxable base to zero, allowing no income tax on those receipts for several years.
Official sources
- Furnished rental income · Service-Public.gouv.fr
- Furnished rentals · impots.gouv.fr
- Housing and financing information · ANIL