LMNP tax in 2026

French furnished letting (LMNP, loueur en meublé non professionnel) falls under the BIC business-income category, not ordinary property income. That single qualification drives everything else: the thresholds, the forms, the ability to depreciate the property and, since 2025, the way the capital gain is computed on sale. Understanding LMNP taxation means choosing between two regimes, then planning the exit.

LMNP remains one of the most effective frameworks in French residential investment, but it can no longer be run on autopilot. The 2025 Finance Act changed the taxation of disposals, and the so-called Le Meur law tightened the micro-BIC thresholds. Here is an up-to-date guide to deciding with full visibility.

Direct answer. In LMNP you are taxed under the micro-BIC (a flat-rate allowance, threshold EUR 77,700 for standard furnished letting and classified tourist lets, EUR 15,000 and a 30% allowance for unclassified tourist lets) or under the régime réel (deduction of actual expenses and depreciation). Since the 2025 Finance Act, depreciation claimed under the réel reduces the acquisition price used for the capital gain on resale.

The micro-BIC applies a flat-rate allowance to rental receipts, with no deduction of actual expenses or depreciation. It is simple, but usually less favourable as soon as the property is financed by a loan or carries significant charges.

The réel regime allows the deduction of loan interest, co-ownership charges, insurance, property tax, management fees and, above all, depreciation of the property and furniture. It requires full accounting and the filing of a tax package (form 2031 and 2033 annexes).

Firm's tip: in LMNP the right question is not which regime is simpler, but which one produces the best net result after tax over your holding period, exit included.

The Le Meur law changed the ceilings and allowances for furnished letting. Three cases must be distinguished.

1. Long-term furnished letting (the tenant's main home): micro-BIC threshold of EUR 77,700, 50% allowance.
2. Classified tourist accommodation: threshold of EUR 77,700, 50% allowance (the former 71% / EUR 188,700 regime has gone).
3. Unclassified tourist accommodation: threshold of EUR 15,000, 30% allowance.

Above these thresholds, the réel regime applies automatically. Below them, you may elect for the réel where deducting charges and depreciation is more advantageous.

Depreciation is the main lever of the réel regime. A property is not depreciated as a block: its value is split between land (not depreciable), the structure, the roof, technical installations and furniture, each depreciated over its own useful life. This component-based split must be documented from the moment you enter the réel.

Depreciation reduces taxable profit, often neutralising tax on the rent for several years. It cannot, however, create a carry-forward loss beyond the rental income: the excess depreciation is reserved and carried to later years.

For practical implementation and choosing a firm able to maintain that schedule over time, see how to choose an LMNP réel-regime accountant.

This is the major change. The 2025 Finance Act (loi n° 2025-127 du 14 février 2025, article 84, amending article 150 VB of the CGI) provides that depreciation deducted under the réel regime reduces the acquisition price used to compute the property capital gain. The gross gain therefore rises by the amount of cumulative depreciation.

The rule applies to disposals completed on or after 15 February 2025 and covers depreciation deducted from the outset, including amounts taken before 2025. The micro-BIC is not affected, as it claims no depreciation.

Exceptions exist: certain managed-residence properties (student, senior and care-home residences) are excluded from the add-back, as is depreciation matching works already taken into account in the gain calculation. The gain remains taxed under the private regime: 19% income tax, 17.2% social levies, with allowances for the holding period (full income-tax exemption beyond 22 years, social levies beyond 30 years).

For the detail of this reform, read the real LMNP 2026 reform.

You buy a furnished flat for EUR 250,000 in 2020, let under the réel, and deduct EUR 40,000 of cumulative depreciation by 2026. You sell for EUR 320,000.

Before the reform, the gross gain would have been EUR 70,000 (320,000 − 250,000). Since the 2025 Finance Act, the acquisition price becomes EUR 210,000 (250,000 − 40,000), raising the gross gain to EUR 110,000. Before holding-period allowances, the additional taxable base is EUR 40,000, exactly the depreciation added back. The annual benefit of depreciation remains real, but it must now be weighed against exit taxation.

You become a professional furnished landlord (LMP) if two cumulative conditions are met: your annual furnished rental receipts exceed EUR 23,000 and exceed the other professional income of your tax household. LMP status changes the treatment of losses, capital gains and liability to social contributions.

For a detailed comparison, see LMNP vs LMP: which tax regime. And if you are unsure about the ownership structure, LMNP or SCI: which regime to let furnished clears up a commonly misunderstood point.

Yes on both counts. Any furnished rental activity must be declared within 15 days via the INPI single window, which generates a SIRET number, as detailed in LMNP and SIRET: mandatory or not. The furnished landlord is also in principle liable for the cotisation foncière des entreprises (CFE), save specific exemptions, covered in CFE and LMNP.

• Choosing the micro-BIC out of habit, with no comparison against the réel.
• Depreciating without a component split or a documented method.
• Overlooking the future impact of depreciation on the capital gain since the 2025 reform.
• Neglecting the start-of-activity declaration, the SIRET or the CFE.
• Computing entry taxation without modelling exit taxation.

The right choice is built on figures, not habit. Compare the net result over several years, check your ability to keep réel-regime accounts clean, and factor in the exit from the start. A poorly maintained réel regime quickly becomes frustrating; a micro-BIC chosen by default can cost avoidable tax.

In our files, the decisive differential rarely comes from the annual tax rate alone: it comes from the holding period, the level of financing and the quality of the depreciation documentation.

In 2026, LMNP taxation remains powerful, but it is steered across three horizons: rental income taxation, accounting obligations and exit taxation. The capital gains reform has heightened the importance of rigorous depreciation tracking and a whole-of-life view.

Current as of 26 May 2026. This article is for information purposes only and does not replace advice tailored to your situation. For any decision, consult a chartered accountant registered with the Ordre des experts-comptables.

For a wider status and exit analysis, read LMP vs LMNP 2026: depreciation and capital gains on sale. It complements the micro-BIC, real-regime, depreciation, capital-gain and social-contribution analysis.