Our sector expertise
LMNP Accountant for Furnished Rentals in France
French LMNP accountant for micro-BIC or real regime, depreciation schedules, Form 2031, furniture tracking, LMP switch planning and resale preparation.
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Our expertise at a glance
We cost the micro-BIC or real-regime choice, build the component-based depreciation schedule and recompute your exit since the 2025 capital-gains reform. The goal: neutralise taxable rent during ownership while securing the tax on sale, with a defensible Form 2031 and monitoring of the LMP and CFE thresholds.
Our added value
- Chartered accountant and statutory auditor registered with the Île-de-France Institute
- Sourced facts (Légifrance, impots.gouv.fr, Service-Public) updated for 2026
- A costed ownership-plus-exit approach, not a mere filing
Who is this for?
- Non-professional furnished landlord in own name or family EURL/SARL
- Investor electing the real regime or adding several units
- Owner of tourist accommodation affected by the Le Meur Act
When to contact us
- Before electing the real regime or signing financing
- Before a sale, to recompute the gain since 15/02/2025
What you get
- Costed regime choice and component-based depreciation schedule
- Form 2031 and 2042-C-PRO carry-over, LMP and CFE threshold monitoring
- Sale projection factoring in article 150 VB, III of the CGI
A non-professional furnished landlord almost always asks the same practical question: how much tax does my depreciation cancel today, and what does the 2025 capital-gains reform change on the day I sell? LMNP looks simple because it is open to an individual holding property in their own name. In practice, it becomes technical as soon as you elect the real regime, finance with debt or hold several units, and each choice commits you for years.
This page targets pure LMNP: a household whose furnished-letting income stays below the professional-landlord threshold, or does not exceed its other earned income. For a panoramic view of property, see our real estate, SCI and LMNP hub. If you hold through a non-trading property company, read the SCI accountant page instead: LMNP is an individual's BIC activity, not an SCI.
Quick answer#
A French CPA for LMNP arbitrates between micro-BIC (50% allowance, income up to 77,700 EUR for standard furnished lettings) and the real regime, which lets you depreciate the property and furniture to neutralise much of the taxable rent. Since 15 February 2025, deducted depreciation is added back into the capital gain on sale (article 150 VB, III of the CGI), which changes the exit calculation.
Micro-BIC or real regime: which to choose for LMNP?#
Micro-BIC applies a flat allowance and requires no bookkeeping: you report income, the tax office computes the base. It is readable, but the allowance does not always match the economics of a file. The real regime deducts actual costs and, above all, lets you depreciate the building (excluding land), furniture and fittings. In many debt-financed files, depreciation combined with interest and expenses brings taxable profit close to zero for several years.
The switch threshold differs by letting type. For long-term furnished lettings (standard) and for classified tourist accommodation or guest rooms, the micro-BIC allowance is 50% and the income threshold is 77,700 EUR. For unclassified tourist accommodation, the Le Meur Act (Act no. 2024-1039 of 19 November 2024) reduced, for 2025 income filed in 2026, the allowance to 30% and the threshold to 15,000 EUR. Above the applicable threshold the real regime applies automatically; below it, it remains available by election.
Micro-BIC vs real regime decision table#
| Criterion | Micro-BIC | Real regime |
|---|---|---|
| Allowance / base | 50% of income (standard furnished) | income minus actual costs |
| Income threshold | 77,700 EUR (standard and classified tourist) | mandatory above, optional below |
| Unclassified tourist | 30% allowance, threshold 15,000 EUR | election advised if costs and depreciation are high |
| Deductible depreciation | no | yes (building excl. land, furniture, fittings) |
| Filing obligations | reported on Form 2042-C-PRO | Form 2031 and schedules, then 2042-C-PRO |
| Best when | actual costs below the allowance | significant debt, costs or furniture |
How does depreciation of the property and furniture work?#
The real lever of the real regime is not just to depreciate, but to depreciate properly. You must allocate the property value between land (non-depreciable), building, fittings and furniture, then apply consistent lives by component. Poorly documented allocation weakens the file in an audit.
A cap frames this benefit. Article 39 C of the CGI provides that depreciation cannot create or worsen a loss: the portion exceeding the result is carried forward and remains deductible, with no time limit, against future profits of the same furnished letting. In practice, depreciation does not generate a loss usable against your overall income, but it durably wipes out taxable rent, sometimes over ten years or more depending on financing.
Our reading#
In landlord files, the most frequent sticking point is not the choice of regime: it is the quality of the depreciation schedule and the traceability of components. A poorly kept real regime loses part of the tax benefit and weakens the resale. The second underestimated point is the threshold effect for unclassified tourist accommodation: a short-stay, unclassified owner may move to the real regime far sooner than expected since the reform.
LMNP capital-gains reform: what changed since 2025?#
This is the most structural change. Article 84 of the 2025 Finance Act (Act no. 2025-127 of 14 February 2025) created article 150 VB, III of the CGI: to compute the capital gain on sale, the acquisition price is now reduced by the amount of depreciation allowed as a deduction during the furnished-letting period. Until then, that depreciation did not reduce the acquisition price, which made the real-regime LMNP especially favourable on exit.
The measure applies to sales completed on or after 15 February 2025, with no grandfathering clause for prior depreciation: it is therefore included. The gain is still computed under the individual property capital-gains regime (with holding-period allowances), but on a wider base.
Certain structures are expressly excluded from the add-back. For dwellings located in residences for students, people under 30 in training, apprentices or professionalisation contracts, residences for people over 65, facilities and services for elderly or disabled people, and long-term care establishments, depreciation is not added back on sale. This is a concrete point of attention for owners of units in managed residences.
2026 points of attention#
- Depreciation remains an asset during ownership, but the exit benefit has narrowed: you must now weigh annual tax saving plus capital-gains tax, not the operating period alone.
- Properties in specialised managed residences keep the former treatment on resale: do not apply the add-back by excess.
- The 15 February 2025 cut-off and the absence of grandfathering call for revising any sale projection prepared before the reform.
LMNP or LMP: when do you become a professional landlord?#
The status is not a choice; it follows two cumulative conditions in article 155, IV of the CGI. You fall under the professional furnished landlord (LMP) status when, at the same time, the household's annual furnished-letting income exceeds 23,000 EUR including tax and that income exceeds the household's other earned income (wages, other BIC, BNC, etc.). If one of the two conditions is not met, you remain LMNP.
The switch to LMP changes the treatment of losses, of capital gains and the liability to social contributions. Many households drift close without noticing, by accumulating units or after a change in professional situation. It is an annual review, not a fixed status.
CFE and filing obligations under the real regime#
Furnished letting is in principle subject to the business property contribution (CFE), even when carried out by an individual. An exemption applies when turnover or income does not exceed 5,000 EUR (article 1647 D of the CGI). Other exemptions exist: occasional, non-repeated letting of part of one's home, subletting part of one's main residence at a reasonable rent, and tourist accommodation located within one's personal residence, unless the municipality decides otherwise.
Under the real regime, you file an income statement Form 2031 (BIC) with its schedules (balance sheet, profit and loss), then report the result on the supplementary Form 2042-C-PRO, in the non-professional furnished-letting income section. This filing chain, combined with accrual accounting and a defensible depreciation schedule, is what secures the real regime.
In practice: what we look at first#
- The letting type (standard, classified or unclassified tourist) to set the right threshold and allowance.
- Financing: heavy debt often makes depreciation and the real regime decisive.
- The land / building / furniture allocation and supporting documentation.
- Proximity to the LMP thresholds (23,000 EUR and comparison with the household's other income).
- The resale horizon, recomputed since the 150 VB, III reform.
What we deliver#
Our LMNP engagement covers the costed regime choice, the component-based depreciation schedule, bookkeeping, Form 2031 and its carry-over to 2042-C-PRO, monitoring of the LMP and CFE thresholds, and a sale projection that factors in the 2025 reform. For holding through a company or a wider project, we work on the link with the SCI and the overall property strategy.
This page is for information and does not replace a review of your situation, your documents and the law in force. Thresholds and the capital-gains reform are sensitive: any arbitrage must be validated on your actual file.
2025 income filed in 2026
LMNP thresholds and benchmarks 2026
Micro-BIC allowance, standard furnished
Formula
50% of income, up to 77,700 EUR
Target
77,700 EUR
Unclassified tourist accommodation
Formula
30% allowance, threshold cut to 15,000 EUR
Target
15,000 EUR
Switch to LMP
Formula
Income > 23,000 EUR AND > other household income
Target
23,000 EUR
CFE exemption
Formula
Income not exceeding the art. 1647 D threshold
Target
5,000 EUR
Depreciation add-back on gains
Formula
Acquisition price reduced (art. 150 VB, III CGI)
Target
15/02/2025
Filing under the real regime
Formula
Form 2031 and schedules, carry-over to 2042-C-PRO
Target
2031
Sector Ecosystem
LMNP sits between private wealth strategy and business-style tax reporting. The real value comes from choosing the right regime, building a defensible depreciation schedule and planning ahead for LMP thresholds or a future sale.
50%
Micro-BIC allowance
EUR 77.7k
Micro-BIC threshold
EUR 23k + 50%
Possible LMP trigger
25 to 40 years
Building depreciation
single-property LMNP investorsmulti-unit furnished landlordsserviced-residence ownersLMNP to LMP transition casesseasonal furnished rentalswealth-structuring reviews
Practical framework
Practical guide for an LMNP landlord
01
Compare micro-BIC and the real regime properly
Review charges, debt, furniture and holding period before choosing a regime that may shape several years of tax treatment.
02
Build a defensible depreciation schedule
Separate land, building, fit-out items and furniture correctly so the optimization remains coherent in case of review.
03
Keep the 2031 file clean year after year
Centralize acquisition documents, financing and expenses so the tax return stays consistent and usable over time.
04
Plan the next move early
Look ahead to a resale, a new acquisition or a possible move into LMP before the tax consequences become urgent.
Your guarantees
National coverage, Parisian expertise
Wherever you are in France, we deploy a 100% digital interface to deliver fast, highly-structured accounting and financial steering.
Regulated firm
Samuel Hayot is a French chartered accountant and statutory auditor registered with the Paris professional bodies.
National reach
The firm is based in Paris 8 and operates with a delivery model designed for businesses located across France.
Modern stack
Pennylane, Dext, Silae and an automation-first setup built for visibility and speed.
Direct contact
Visible phone number, simple contact path, fast engagement letter and tighter qualification of the mandate.
Useful resources
Need a quick read on your situation?
30 complimentary minutes with Samuel Hayot to challenge your reporting and surface your priority levers.
Perspectives
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FAQ
Frequently Asked Questions
What is the difference between micro-BIC and the real LMNP regime?
Micro-BIC applies up to €83,600 of furnished-rental revenue with a flat 50% allowance (unclassified tourist rentals are capped at €15,000 with a 30% allowance since the loi Le Meur). Simple but capped. The real regime deducts actual expenses (interest, charges, works, fees) plus depreciation of the property and furniture, often reducing taxable rental profit to zero for 10-15 years. For most LMNP investments with significant works or debt, the real regime is clearly superior.
How does LMNP depreciation work?
Under the real regime, the building (excluding land — typically 15-20% of total value) is depreciated over 25-40 years, fit-out and major works over 10-20 years, furniture over 5-10 years. A correctly built schedule eliminates taxable rental profit for the first decade of ownership. A weak schedule (single 30-year line) leaves €5,000-€15,000/year of avoidable tax.
When does LMNP become LMP?
Automatically when furnished-rental revenue exceeds €23,000 per year AND 50% of the household's total income. The switch brings benefits (rental losses deductible against global income) and costs (URSSAF contributions ~30-45% on profit, different capital-gains rules). We monitor the threshold for every active LMNP client and flag the crossing 3-6 months ahead.
Are LMNP rentals subject to VAT?
Standard furnished-rental income is VAT-exempt. However, furnished rental with para-hotel services (breakfast, regular cleaning, linen, reception — at least 3 of the 4) can fall under 10% VAT, allowing VAT recovery on the acquisition (~20% of the property cost). The option requires careful structuring of the services and invoicing.
How are LMNP losses treated?
Under the LMNP real regime, rental losses (after depreciation) can be carried forward for 10 years and offset against future LMNP rental income. They cannot offset other household income (unlike LMP). The accumulated loss carry-forward becomes valuable when the property is eventually sold.
What happens to LMNP depreciation when the property is sold?
Capital gain on resale is calculated on the difference between sale price and original acquisition cost (not net book value). The accumulated depreciation does not reduce the cost basis for the private LMNP capital-gains regime. After 22 years of ownership, the capital gain is fully exempt from income tax; after 30 years, from social charges. This makes LMNP an exceptional long-hold investment.
Can I hold an LMNP property through a company?
Yes, but with consequences. An LMNP held through an SCI à l'IS shifts the regime to corporate-tax rules: depreciation continues, but the capital gain on sale is taxed at IS (25%) without holding-period relief. For long-hold strategies, direct LMNP usually beats SCI-IS. For short-hold or transmission-oriented structures, SCI-IS or holding patrimoniale may make sense.
What documents should I keep for an LMNP audit?
Acquisition deed, financing documents (loan, interest table), furniture invoices, works invoices, every annual 2031 return and its supporting depreciation schedule, agency and management fees, insurance receipts, property taxes, and the cumulative loss carry-forward statement. Keep them for the full holding period plus 6 years after sale.
Article written by Samuel Hayot
Chartered Accountant, registered with the Institute of Chartered Accountants.
Regulated French firmUpdated 30 March 20266 sources cited
Regulated French accounting and audit firm based in Paris 8, built to support companies across France with a digital and decision-oriented approach.
Sources
Official and operational sources cited for this page.
- Service-Public - Income tax: income from furnished letting (F32744)
- impots.gouv.fr - New tax regime for tourist furnished lettings (Le Meur Act)
- Légifrance - Article 150 VB of the CGI (depreciation add-back, 2025 Finance Act)
- Service-Public Entreprendre - Tax regime of the professional furnished landlord (LMP, F32805)
- impots.gouv.fr - Furnished letting and CFE (art. 1647 D of the CGI)
- Légifrance - Article 39 C of the CGI (cap on depreciation of leased assets)