Furnished rental (LMNP): the complete guide

What is the LMNP status?

Non-professional furnished rental (LMNP) means renting out a home equipped with the furniture required for normal occupancy (bed, table, seating, cooking hobs, fridge, utensils…, list set by decree no. 2015-981). Unlike unfurnished rentals, the income is not taxed as property income but as industrial and commercial profits (BIC).

The status remains "non-professional" as long as the household's annual furnished rental income does not exceed €23,000 or stays below the household's other earned income. Once both conditions are exceeded, you switch to professional furnished landlord (LMP), with a distinct social and tax regime.

Micro-BIC or actual regime: which to choose?

Furnished rental income can be taxed under two regimes: the micro-BIC, flat-rate and simplified, and the actual regime, which lets you deduct expenses and, above all, depreciate the property. The actual regime often results in a very low or even nil taxable result.

Threshold — Micro-BIC : Income ≤ €77,700 per year (standard furnished) · Actual regime : > €77,700 per year, or by election

Treatment of expenses — Micro-BIC : Flat-rate 50% allowance · Actual regime : Deduction of actual expenses + depreciation of the property and furniture

Depreciation — Micro-BIC : No (included in the allowance) · Actual regime : Yes — the value of the property and furniture spread over their useful life

Filing form — Micro-BIC : Income reported on the 2042-C-PRO · Actual regime : 2031 tax return and schedules, result carried to the 2042-C-PRO

Best if — Micro-BIC : Few expenses, no loan · Actual regime : Recent purchase, ongoing loan or high expenses (often nil result)

Note: for unclassified tourist furnished rentals, the micro-BIC threshold is lowered to €15,000 and the allowance to 30% since the law of 19 November 2024. Classified tourist rentals keep a 50% allowance within a €77,700 income limit.

Depreciation: the main advantage of the actual regime

Under the actual regime, you can deduct each year a portion of the value of the property and its furniture: this is depreciation, which accounts for the wear 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

• Components (roof, façade, technical installations): depreciated separately over 15 to 25 years

• Furniture and appliances: depreciated over 5 to 10 years

The value of the land is never depreciable. Above all, depreciation cannot create or worsen a loss: the portion exceeding the profit is carried forward, with no time limit, against future years' results.

How to file, step by step

A furnished landlord carries out an activity taxed as BIC: you must register, then declare your income each year alongside your income tax return.

1. Register your activity — As soon as the rental starts, declare your furnished landlord activity on the one-stop business formalities portal (INPI) within 15 days. You will receive a SIRET number, essential for the tax return.

2. Choose your tax regime — By default you fall under the micro-BIC if your income stays below the thresholds. You may elect for the actual regime, often more advantageous thanks to depreciation: the election is filed with the tax office and applies for one year, tacitly renewable.

3. Complete the right form — Under the micro-BIC, report the gross amount of your income on the 2042-C-PRO supplementary return (the allowance is applied automatically). Under the actual regime, prepare the 2031 tax return with its schedules (income, expenses, depreciation table), then carry the result to the 2042-C-PRO.

4. Keep your supporting documents — Keep purchase invoices for the property and furniture, the depreciation table, rent receipts and expense documents: at least three years for expenses, and for the whole depreciation period (plus three years) for acquisition documents. Under the actual regime, the support of a chartered accountant or approved management centre is common and deductible.