LMNP 2026: Tax Optimization, Depreciation and New Rules

Rental investment in Non-Professional Furnished Rental (LMNP) continues to be a strategy of choice for VSE/SME managers wishing to diversify their assets. However, the year 2026 brings its share of legal and technical details that it is essential to master.

Before tackling optimization, let's recall the two tax regimes available in LMNP:

The micro-BIC diet

The micro-BIC applies automatically if your annual rental income does not exceed:

• ▸€77,700 for classic furnished apartments (micro BIC 2026 threshold)
• ▸€188,700 for classified tourist accommodation and guest rooms

Under this regime, a flat rate reduction of 50% (or 71% for classified tourist accommodation) is applied to gross receipts. It's simple to manage but rarely optimal.

The real regime simplified

The actual regime makes it possible to deduct real expenses and above all to practice depreciation. It is mandatory if you exceed the micro-BIC thresholds, and strongly recommended if you have property of significant value.

Practical rule: in almost all cases with property acquired over €100,000, the real regime is more advantageous from the first year.

Depreciation is the main tax lever of the LMNP. It allows the depreciation of the property to be deducted in accounting, without cash outflow, creating a zero or negative tax result for many years.

Breakdown of components and depreciation periods

Numerical example: For an apartment acquired for €300,000 (including €240,000 depreciable, land excluded):

• ▸Average annual depreciation: approximately €4,500 to €6,000 depending on the breakdown
• ▸Deductible charges (interest, co-ownership charges, insurance, management fees): approximately €6,000
• ▸Potential tax result: zero or negative despite rents of €12,000 to €15,000/year

Reintegration of depreciation into capital gains: the key rule 2025-2026

Since the 2025 finance law (applicable from February 15, 2025), depreciation deducted during the rental period is reinstated in the calculation of the taxable capital gain upon resale.

New formula: Taxable capital gain = Sale price − (Purchase price − Total depreciation deducted)

Concretely: if you have depreciated €80,000 on a property acquired for €300,000 and resold for €400,000, the taxable capital gain is calculated on €180,000 (instead of €100,000 previously), then subject to the property capital gains regime for individuals (deductions for holding period).

Strategy: This rule makes the length of detention even more important. The progressive reductions (22% per year from the 6th year for IR, 1.65% for PS) make it possible to erase the increased capital gain after 22 years (IR) and 30 years (PS).

Micro-BIC vs real comparison on a practical case

Property: furnished apartment Paris, monthly rent €1,200, value €280,000

Many furnished rental companies are unaware of this, but as they are subject (even not liable) to VAT, they fall within the scope of electronic invoicing:

1. ▸From September 2026: You must be able to receive e-invoices (insurance, works, trustee) via a partner dematerialization platform (PDP) or the public portal.
2. ▸For large rental properties: The use of property management software connected to the public portal becomes imperative.
3. ▸Micro-LMNP: Even rental companies below the VAT threshold must anticipate the receipt of electronic invoices from their service providers.

For entrepreneurs, 2026 confirms the interest in housing your real estate assets in an IS structure (SCI or dedicated subsidiary) owned by a holding.

• ▸Advantage: Reinvestment of dividends from the operating company into real estate with reduced taxation (parent-daughter plan: 95% of dividends exempt).
• ▸Depreciation maintained: In an SCI with IS, depreciation is still practiced and the reintegration rule does not apply in the same way (professional capital gains regime).
• ▸Vigilance: Make sure that your real estate investment has real economic substance to avoid requalification.

Managing your LMNP without an accountant in 2026 is an increasing risk:

• ▸Calculation of depreciation: The breakdown by components is complex and subject to control. A mistake can cost thousands of euros in recovery.
• ▸2031 tax package: Obligation to deposit electronically. Deadlines are strict.
• ▸Declaration 1447-C (CFE): Furnished rental companies are liable for the CFE in most cases.
• ▸Monitoring carry-forward deficits: A monitoring table for non-professional BIC deficits is essential over 10 years.
• ▸Resale advice: Simulation of the reinstated capital gain and optimization of the sale timing.

Hayot Expertise manages more than 500 LMNP files in Paris and the region. Our fees are deductible from your BIC income and themselves constitute a profitable investment.

❌ Neglecting the energy performance assessment (DPE): Rental constraints for thermal strainers are tightening. Properties classified G have been prohibited for rental since January 2025. ❌ Forgetting the occupancy declaration: A tax declaration obligation (form 1447) sanctioned in the event of omission. ❌ Do not anticipate the reintegration of depreciation: Integrate this parameter from the acquisition into your calculation of long-term net profitability.

Hayot Expertise specializes in advising real estate investors. We manage more than 500 LMNP files in Paris and the region.

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