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.

Micro-BIC: simple but limited#

• Flat-rate 50% abatement on rental receipts (71% for classified furnished rentals or bed-and-breakfast)
• 2026 eligibility threshold: annual turnover ≤ €83,600 (or ≤ €203,100 for classified furnished 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 holdng 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

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 €100,000 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

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

Explore our packaged support offers on our pricing page.