LMNP: régime réel or micro-BIC, how to choose

Non-professional furnished letting: the flat-rate micro-BIC scheme or the régime réel with depreciation? Thresholds, allowances, forms and formalities — the guide to choosing the most advantageous tax regime.

The non-professional furnished landlord status (LMNP, loueur en meublé non professionnel) means your rental income falls under industrial and commercial profits (BIC) rather than property income. You then have a choice of two tax regimes: micro-BIC, a simple flat-rate scheme, and the régime réel (actual-costs regime), which is more technical but often far more advantageous thanks to depreciation. This guide will help you choose.

What is LMNP status?

Non-professional furnished letting refers to renting out a home fitted with the furniture needed for normal occupation (bedding, hob, fridge, table, seating, etc. — the list is set by decree no. 2015-981). Unlike unfurnished letting, the rental income falls under the BIC category.

The status remains "non-professional" as long as the household's annual furnished-letting income does not exceed 23,000 euros or stays below the household's other earned income. If both conditions are exceeded at the same time, you switch to professional furnished landlord status (LMP, loueur en meublé professionnel), which is subject to a separate social-security and tax regime.

Micro-BIC or régime réel: the comparison

Micro-BIC applies a flat-rate allowance to your income; the régime réel deducts your actual expenses and, above all, depreciates the property. Here are the main points of comparison.

Micro-BIC: flat-rate simplicity

  • Available if income does not exceed 77,700 euros per year for a standard furnished let.
  • Flat-rate allowance of 50%: you are taxed on half of your income, with no supporting documents required.
  • Simplified return: the gross amount of income is entered on form 2042-C-PRO, and the allowance is applied automatically.
  • Ideal if you have few expenses and no outstanding loan.

Régime réel: depreciation on top

  • Applies automatically above 77,700 euros of income, or by election below that.
  • Deduction of actual expenses (loan interest, property tax, insurance, management, works) and depreciation of the property and furniture.
  • The taxable result is often very low, or even nil, for several years.
  • In return, the accounting is heavier: tax return package 2031 and its schedules, often prepared with a chartered accountant.

Note: for unclassified tourist furnished lettings, the micro-BIC threshold has been lowered to 15,000 euros and the allowance to 30% since the law of 19 November 2024.

Depreciation: the main advantage of the régime réel

Under the régime réel, each year you deduct a fraction of the value of the property and its furniture: this is depreciation, which accounts for the wear and tear of the home. The property is broken down into components, each depreciated over its useful life:

  • The building's structural work: depreciated over a long period, generally 40 to 50 years.
  • The components (roof, façade, technical installations): depreciated separately over 15 to 25 years.
  • The furniture and appliances: depreciated over 5 to 10 years.

The value of the land can never be depreciated. Above all, depreciation cannot create or worsen a loss: the portion exceeding the profit is carried forward without time limit against the results of subsequent years.

How to file, step by step

A furnished landlord carries on an activity falling under the BIC category: you must register, then declare your income each year alongside your income tax return.

  • Register your activity on the one-stop shop for business formalities (INPI) within 15 days of the start of the letting: you will obtain a SIRET number.
  • Choose your regime: micro-BIC by default below the thresholds, or election for the régime réel (binding for one year, tacitly renewable).
  • Complete the right form: gross income on form 2042-C-PRO under micro-BIC; the 2031 package and its schedules, then carried over to form 2042-C-PRO, under the régime réel.
  • Keep your supporting documents (furniture invoices, depreciation schedule, receipts) for at least three years.

What changes on resale

Since the 2025 Finance Act, the depreciation deducted under LMNP is reintegrated into the calculation of the property capital gain on resale (with exceptions, notably for certain serviced residences). The benefit of depreciation is therefore partly recovered on exit: it remains an attractive tax deferral, but one to factor into a long-term strategy.

Frequently asked questions

What is the difference between LMNP and LMP?

You are a non-professional furnished landlord (LMNP) as long as your annual furnished-letting income does not exceed 23,000 euros or stays below the household's other earned income. If both conditions are exceeded at the same time, you become a professional furnished landlord (LMP), subject to social-security contributions and to a different regime for capital gains and losses.

Micro-BIC or régime réel: which should you choose?

Micro-BIC applies a flat-rate allowance of 50% (standard furnished let): simple and advantageous if your actual expenses are low. The régime réel lets you deduct actual expenses and depreciate the property and furniture; it often results in a very low or even nil taxable result, but requires heavier accounting. It is generally more attractive in the case of a recent purchase, an ongoing loan or high expenses.

How does depreciation work under LMNP?

Under the régime réel, each year you deduct a fraction of the value of the property (excluding land) and the furniture, spread over their useful life: around 25 to 50 years for the property depending on the components, and 5 to 10 years for the furniture. This depreciation reduces your taxable profit but cannot create a loss: the excess portion is carried forward without time limit.

What are the steps to get started with LMNP?

Declare your furnished-letting activity on the INPI one-stop shop within 15 days of the start of the letting to obtain a SIRET number. Then choose your regime (micro-BIC or régime réel) and declare your income each year on form 2042-C-PRO, supplemented by the 2031 package under the régime réel.

Is depreciation clawed back when the property is resold?

Yes, since the 2025 Finance Act: the depreciation deducted under LMNP is reintegrated into the calculation of the property capital gain on resale (with exceptions, notably for certain serviced residences). The tax benefit is therefore partly recovered on exit, but it remains a useful tax deferral to factor into a long-term strategy.

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