LMNP real regime vs micro-BIC simulator 2026
Compare the French furnished-rental micro-BIC and real regimes with rent, charges, interest, indicative depreciation and 2026 watchpoints.
Compare micro-BIC taxable income with real-regime profit after expenses.
Estimate indicative depreciation without creating artificial tax losses.
Highlight exit effects and 2026 risks that require review.
LMNP real regime or micro-BIC: annual tax is not the whole decision
The real LMNP regime can reduce taxable profit through expenses and depreciation, but it requires proper accounting and a long-term view. Micro-BIC remains simple, but can be unfavourable for financed properties or properties with significant costs.
Micro-BIC
Micro-BIC applies a flat allowance to rent. It is simple, but ignores the actual charges and interest paid.
- Suitable for properties with limited expenses.
- Less precise when interest, works or management fees are high.
- Should be reviewed when thresholds or property status change.
Real LMNP regime
The real regime deducts expenses and may depreciate the property and furniture under accounting assumptions. The simulator caps used depreciation to avoid artificial losses.
- Relevant when interest, charges and depreciation are material.
- Requires accounting, filings and depreciation tracking.
- Should be analysed with the expected sale horizon.
Patrimonial view
The decision must include holding period, cash flow, financing, works, exit taxation and possible legislative changes.
- Compare several years rather than one tax snapshot.
- Separate cash flow, taxable result and available income.
- Validate depreciation assumptions before filing.
What an LMNP simulation should include
LMNP is a YMYL topic: figures must remain indicative and be checked against the lease, financing and current rules.
- Rent, vacancy, recoverable and non-recoverable charges.
- Interest, insurance, property tax, works and management fees.
- Land, building and furniture values for depreciation.
- Holding period, sale scenario and 2026 reforms.
Hayot Expertise analysis
We recommend comparing micro-BIC and the real regime across several years. The real regime can be powerful only when depreciation, expenses and filings are documented and followed properly.
The underestimated risk
Looking only at annual tax can hide accounting cost, depreciation errors, sale effects or reforms that apply to a specific type of rental.
What the owner must decide
- Which regime to use and when to opt.
- The likely holding period.
- The level of works and expenses to document.
- The cash-flow strategy between tax, debt and sale.
2026 watchpoints
- Check rules that apply to the furnished rental and property type.
- Control the depreciable base excluding land.
- Do not equate annual tax saving with investment return.
- Review sale consequences before choosing.
LMNP real regime and micro-BIC FAQ
Is the real LMNP regime always better than micro-BIC?
No. It depends on expenses, interest, property value, depreciation and accounting cost. A low-expense property can still fit micro-BIC.
Does LMNP depreciation create a definitive tax saving?
Not automatically. Current rules, holding period and potential exit effects must be analysed. The simulator gives a prudent estimate.
Why does the simulator ask for the micro-BIC allowance rate?
Because the allowance depends on the type of furnished rental and applicable rules. The rate must be checked before deciding.
Is cash flow the same as taxable LMNP profit?
No. Cash flow follows rent, paid expenses and debt service. Taxable profit follows accounting and tax rules.
When should the regime be reviewed with an accountant?
Before opting for the real regime, after major works, for classified rentals or before a sale. The effect can go beyond one tax year.
Official sources
Updated on 4 May 2026. LMNP assumptions must be reviewed against the property, lease and tax situation.
Go further
Need to choose the right LMNP regime?
We can review your rent, expenses, financing and depreciation over several years before you choose micro-BIC or the real regime.