LMNP Accountant in Paris | Furnished Rental Tax in France

LMNP Accounting and Tax Advice - Hayot Expertise#

Non-professional furnished letting (LMNP) remains in 2026 one of the most tax-efficient property investment strategies in France, despite recent legislative changes. The BIC real regime allows you to deduct all expenses and depreciation, dramatically reducing or even eliminating tax on your rental income for many years. Hayot Expertise works with over 150 LMNP investors: Parisian apartments, service residences (care homes, student accommodation, co-living), and short-term rentals such as Airbnb. Our speciality: extracting the maximum benefit from the real regime for each investor profile.

Non-professional furnished letting is the activity of letting a property equipped with enough furniture and fittings for the tenant to live there without bringing their own belongings. It is taxed in the category of Bénéfices Industriels et Commerciaux (BIC — industrial and commercial profits), not in the revenus fonciers (unfurnished rental income) category — and that distinction is what opens the door to depreciation, which is impossible under the classic unfurnished-letting regime.

In 2026, the BIC real regime remains the optimal choice for the vast majority of LMNP investors:

• Component-based depreciation: the principal tax weapon of the LMNP — it lets you book the annual wear of the property and the furniture each year, generating a deductible charge with no cash outflow
• Deduction of every actual cost: loan interest, insurance, taxe foncière (property tax), management fees, co-ownership service charges
• Loss carried forward for 10 years against income of the same nature (non-professional BIC)
• A taxable result close to zero: on a well-calibrated property, the taxable result can be nil or minimal for 10 to 20 years

The key lies in the initial depreciation plan: a precise component breakdown from acquisition multiplies the tax advantage across the entire holding period. This is where the involvement of a specialist LMNP accountant makes the difference.

Read also: LMNP 2026: optimisation and new rules

Micro-BIC: simple but limited#

• Flat-rate 50% abatement on rental receipts (30% for unclassified tourist rentals)
• 2026 eligibility threshold: annual turnover ≤ €83,600 (€15,000 for unclassified tourist rentals)
• No deduction for actual costs or depreciation
• No accountant required
• Only recommended if your actual costs represent less than 50% of receipts — which is rare in furnished letting

BIC real regime: the power of depreciation#

• Deduction of all actual costs: loan interest, insurance, property tax (taxe foncière), service charges, management fees, accountancy fees
• Deduction of depreciation on the property (excluding land, i.e. 70–85% of value), furniture and renovation works
• BIC loss carried forward for 10 years against income of the same nature
• Obligation to maintain commercial accounts (income statement, balance sheet, 2031 tax package)
• Strongly recommended to use an accountant to maximise depreciation and secure the filing

Practical example: apartment in Paris 15th#

Property purchased for €450,000 (land €90,000), rented at €1,800/month

Without depreciation (micro-BIC): €21,600 × 50% = €10,800 taxable. The annual tax saving can reach €3,000 to €5,000 depending on your marginal tax rate.

Depreciation is the accounting recognition of an asset's wear over time. Under the LMNP real regime, it is the primary charge that neutralises rental income.

Recommended property breakdown#

• Land: non-depreciable, typically 15–20% of total value (Paris: 20–30%)
• Structure (shell, foundations): depreciated over 50 years (2%/year)
• Facade and roof: depreciated over 25 years (4%/year)
• Technical installations (plumbing, electrics): depreciated over 15 years (~6.7%/year)
• Furniture: depreciated over 5 to 10 years (10–20%/year)
• Renovation works: depreciated over their estimated useful life

A precise breakdown at the point of acquisition is essential. Early involvement is where we save you thousands of euros over the holding period.

Since the 2025 Finance Act (applicable to sales from 15 February 2025), depreciation deducted under the LMNP real regime is reintegrated into the property capital gain calculation on resale:

• Formula: Taxable gain = Sale price − (Purchase price − Cumulative depreciation)
• The holding period abatements (under the personal property gains regime) apply to this recalculated base
• Consequence: the tax burden at resale is higher, which reinforces the case for long-term holding or placing the asset in an IS-registered SCI

Read more: LMNP 2026: optimisation and new rules

The loi Le Meur (Act of 19 November 2024) has profoundly reshaped the rules applying to furnished tourist letting in France.

Major changes introduced by the loi Le Meur#

• Lower micro-BIC threshold: for unclassified tourist rentals, the flat-rate abatement drops from 50% to 30% and the turnover threshold from €77,700 to €15,000 — making the real regime even more attractive for the majority of Airbnb hosts
• Classified tourist accommodation and chambres d'hôtes (guest houses): since the loi Le Meur, the abatement falls from 71% to 50% and the micro-BIC threshold from €188,700 to €83,600 (2026)
• Mandatory DPE (energy performance diagnosis): any tourist rental let for the first time must hold an energy performance certificate. Properties rated G will be banned from tourist letting from 2028
• Municipal powers: local councils may lower the number of nights authorised for short-term letting of a main residence to 90 nights per year
• Mandatory compensation: in certain municipalities, converting a residential dwelling into a tourist rental requires compensation

Impact on seasonal LMNP strategy#

The lower micro-BIC threshold for unclassified rentals pushes almost all seasonal hosts towards the BIC real regime. We help our clients assess whether classification as furnished tourist accommodation is worthwhile (the Atout France procedure), choose between direct LMNP, an IS-registered SCI or a wealth holding depending on the volume of activity, and anticipate the DPE obligations.

The professional furnished landlord (LMP) status applies when two cumulative conditions are met:

1. Annual furnished-letting receipts exceed €23,000
2. These receipts represent more than 50% of the tax household's professional income

Advantages of LMP#

• Losses deductible against overall income (and not only against non-professional BIC as in LMNP)
• Capital gains exemption if the activity has been carried on for more than 5 years and receipts are below €90,000 (full exemption) or €126,000 (partial exemption)
• IFI exemption: LMP assets are treated as professional assets and fall outside the impôt sur la fortune immobilière (property wealth tax)

Drawbacks of LMP#

• Social contributions: the LMP result is subject to the self-employed social scheme (SSI) — unlike LMNP, which escapes them entirely
• A threshold that is hard to control: if your salary income falls, you can tip into LMP without having planned it, triggering unforeseen social contributions

We review your situation each year to anticipate a possible crossing of the threshold and to structure your activity accordingly.

See also: Holding company and SCI tax

Every furnished landlord — LMNP or LMP — is liable for the Cotisation Foncière des Entreprises (CFE — business property contribution), even where the activity is carried on on a non-professional basis.

Rules applying in 2026#

• CFE is due from the first year of activity (with a full exemption in the first year of operation)
• The tax base is the cadastral rental value of the premises used for the activity
• Permanent exemption for landlords whose annual receipts are below €5,000
• Service residences run by an operator may be exempt from CFE in certain cases

We handle the initial start-of-activity declaration (P0i), the 1447-C return and the annual review of the contribution base for you.

Under the real regime, you file an annual 2031 BIC tax return, which includes:

• Balance sheet and income statement (schedules 2033 A to G)
• Depreciation schedule (2033 C)
• Provisions schedule (2033 D)
• 2031 result declaration with elected options

This package is separate from your personal income tax return (form 2044), but the BIC result (profit or loss) feeds into your 2042 C PRO. We handle the entire filing chain.

IS-registered SCI for furnished letting#

An SCI can carry on furnished letting activity but automatically becomes subject to corporate tax (IS) once more than 10% of its income is commercial (furnished). An IS-registered SCI allows:

• Property depreciation (as in the LMNP real regime) and expense deduction
• Deductible director remuneration
• Reduced IS rate of 15% on the first €42,500 of profit
• Dividend distribution at the 31.4% flat tax (or upstreaming to a holding)

Main drawback: double taxation (IS + flat tax) at resale, and loss of the personal property gains regime.

Wealth holding company#

For a larger property portfolio, a SAS holding that owns several IS-registered SCIs allows you to:

• Centralise rental cash flow
• Finance new acquisitions without a taxable withdrawal (parent-subsidiary regime)
• Prepare succession by gifting holding shares

Our LMNP accounting service is aimed at:

• Private property investors wanting to optimise the taxation of their furnished property or properties through the real regime
• Owners of service residences (care homes, student residences, tourist residences, co-living) operated under a commercial lease
• Seasonal hosts (Airbnb, Abritel, Booking) affected by the loi Le Meur and wanting to secure their tax regime
• IS-registered SCIs and wealth holdings holding furnished property
• Taxpayers changing regime (moving from micro-BIC to the real regime, or recovering depreciation not deducted in the past)

See also: Our specialist real estate and SCI service

Learn more: Holding company and SCI tax

1. Situation audit: review of your current regime, detection of missed depreciation in prior years
2. CFE initial registration: registration with the Business Formalities Centre (for new activity)
3. Depreciation plan: component-by-component breakdown and calculation from acquisition
4. Annual bookkeeping: entry, review, updated depreciation plan
5. 2031 return and annexes: filed on time
6. Personal return coordination: correct feeding of the 2042 C PRO
7. Wealth planning advice: LMNP direct vs IS-registered SCI vs holding, depending on your goals

1. Initial situation audit: review of your current regime, detection of undeclared depreciation from prior years (possible over the 3 non-time-barred financial years), analysis of the lease agreement where a service residence is involved
2. SIRET registration: where this is a first LMNP activity, creation of the file with the business formalities centre (free of charge)
3. Optimised depreciation plan: component-by-component breakdown of the property from acquisition, integration of works and furniture
4. Annual bookkeeping: entry of receipts and costs, updating of the depreciation plan, review of the balance sheet
5. 2031 package and annexes: preparation and filing within the statutory deadlines
6. Income tax filing coordination: correct integration of the BIC result into the 2042 C PRO
7. Ongoing wealth advice: arbitrage between LMNP, IS-registered SCI and holding, anticipation of LMP, optimisation at resale

1. Staying on micro-BIC when the real regime would be more favourable: as soon as your costs exceed 50% of your receipts (or 30% after the loi Le Meur for unclassified rentals), the real regime is almost always preferable.
2. Failing to break the property into components at acquisition: a property depreciated as a single block over 30 years generates far less depreciation than one split into components. This mistake costs several thousand euros over the holding period.
3. Forgetting SIRET registration: without registration, the 2031 package cannot be filed and depreciation cannot be deducted.
4. Neglecting the reintegration of depreciation at resale: the 2025 Finance Act increases the tax burden on disposal. Failing to anticipate it can lead to a flawed assessment of overall profitability.
5. Confusing LMNP and LMP: tipping into LMP triggers unplanned social contributions. An annual watch on the thresholds is essential.

Case 1: apartment in Paris 15th — saving through the real regime#

Property purchased for €450,000 (land €90,000), rented at €1,800/month

Over a 15-year holding period: cumulative saving ≈ €54,000 (excluding rent indexation and discounting).

Case 2: student residence — €200,000 investment#

An investor acquires a studio in a managed student residence (9-year commercial lease) for €200,000. Guaranteed net rent: €650/month.

Component depreciation plan:

Rent: €7,800/year — Costs: €2,400/year — Depreciation: €5,962/year Taxable result: −€562 (loss carried forward) Tax due: €0 (vs ≈ €2,300 under micro-BIC at the 50% abatement, marginal rate 30%)

Annual saving: ≈ €2,300 — recovered across the whole depreciation period.

Explore our packaged support offers on our pricing page.

• LMNP specialist in Paris: more than 150 LMNP investors supported, across every profile (individuals, service residences, seasonal hosts, SCIs)
• Optimised depreciation plan: our expertise in component breakdown maximises your tax deductions from the very first filing
• Paris 8: at 58 rue de Monceau, consultations in person or by video call
• 10 years of experience in real estate and LMNP, with continuous monitoring of legislative change (loi Le Meur, Finance Acts, case law)
• Dual real estate and tax expertise: we advise on structuring (direct LMNP, IS-registered SCI, holding) and not only on the accounting
• Transparent fees: clear packages, with no surprises