Professional furnished landlord (LMP): thresholds and contributions 2026

Quick answer. The professional furnished landlord (LMP) status applies by operation of law as soon as the household's furnished-rental receipts exceed 23,000 euros per year AND exceed the household's other earned income (Tax Code art. 155 IV). The heaviest consequence is not fiscal but social: the LMP falls under self-employed social contributions, far higher than the 17.2% social levies of the non-professional status.

Moving from non-professional to professional furnished landlord is not a choice, it is a threshold you cross, sometimes without realising it. And the switch changes everything, especially on social contributions. Understanding the thresholds, the social cost and the trade-offs of the LMP status lets you anticipate rather than suffer a surprise affiliation. Let us review it for 2026.

The LMP status rests on two conditions that must be met at the same time (Tax Code art. 155 IV).

The first is that the annual furnished-rental receipts of the whole tax household exceed 23,000 euros, charges and taxes included. The second is that these receipts exceed the household's other earned income subject to income tax: salaries, pensions, other professional profits. If only one of the two conditions is met, you remain a non-professional furnished landlord.

This cumulative nature is essential. A household with high salaries can collect more than 23,000 euros of furnished rents without becoming an LMP, for lack of exceeding its earned income. Conversely, a retiree or a household with low other income switches more easily.

The most striking change of the move to LMP concerns social levies.

Under the non-professional status, furnished income bears social levies at 17.2%. Under LMP, the activity becomes professional and falls under the self-employed social scheme: contributions are based on the profit, at a far higher level, on the order of several tens of percent of the result, with a minimum flat contribution even in the absence of profit. In return, these contributions open social rights, notably to a pension.

This switch can significantly increase the burden, especially on a high profit. It is the first point we cost with an investor approaching the thresholds, because it changes the economic balance of the project.

The LMP status does not only have drawbacks: it opens advantages that the non-professional status does not.

LMP activity deficits are deductible from overall income with no cap, excluding the part linked to depreciation, which can strongly lighten tax in the early years. Above all, disposal gains fall under the professional regime and can be exempt under article 151 septies when the activity has been carried on for at least five years and receipts stay under 90,000 euros, a subject developed in our article on the exemption of professional capital gains 151 septies.

Since 2025, the taxation of non-professional furnished gains has changed and brings the two statuses slightly closer.

For disposals made from 15 February 2025, the depreciation deducted under the non-professional status is reintegrated into the individual capital gain calculation, excluding eligible service residences. This reduces one of the historic advantages of the non-professional status and reinforces the comparative interest of the professional regime on this specific point. The detail of this reform and the related arbitrages is covered in our comparison non-professional status against the 2026 reform.

The LMP status is neither a trap nor a grail: it is a change in the nature of the activity, which must be anticipated. The major point of vigilance remains social contributions, often underestimated by investors who reason only in tax terms.

Our method is to project the household's receipts and other income to locate the crossing of the thresholds, then to cost the social cost of the move to LMP against its advantages, deductible deficits and capital gains regime. Depending on the profile, you can seek to stay under the threshold, accept the LMP knowingly, or structure the holding differently. The decision must be taken before the switch, not discovered at the first affiliation.

A retired investor collected 28,000 euros of furnished rents, on modest pensions. He thought he would stay non-professional, but his receipts exceeded both 23,000 euros and his other earned income: he was an LMP by operation of law. The discovery of the social contributions was a shock, because he had reasoned on the 17.2% alone. The analysis costed the real social cost, but also the trade-offs: deductible deficits and a possible exemption of the gain in time. The project was redirected knowingly, rather than suffered.