LMNP : tout savoir sur le statut Loueur Meuble Non Professionnel
What is this scheme?
The LMNP status (Loueur Meublé Non Professionnel - Non-Professional Furnished Landlord) applies to anyone renting a furnished property and reporting the income as BIC (commercial profits) rather than as property income. It is automatically accessible from the first rent received, with no specific upfront process other than declaring the activity (form P0i) within 15 days of starting the rental. Two tax regimes coexist: micro-BIC (flat 50% allowance, 71% for classified tourist rentals) and the real regime (deduction of actual expenses, accounting depreciation of the property and furniture).
Eligibility requirements
To remain in LMNP (and not LMP), annual furnished rental income must NOT exceed either of these two limits: - EUR 23,000/year in rental receipts (charges included), OR - 50% of total household tax income. If BOTH conditions are exceeded, the status automatically switches to LMP (Professional Furnished Landlord) with its own tax and social consequences. The property must be rented furnished (per the 31 July 2015 decree: bedding, cooking plate, refrigerator, crockery, etc.). Unfurnished rental is NOT eligible for LMNP.
Tax advantages
The main advantage of LMNP at the real regime is accounting depreciation: each year you deduct a fraction of the property and furniture value (~2-3% per year on the structure, 10-20% on furniture). This depreciation, combined with classic deductible expenses (loan interest, property tax, condo, insurance, management), is often enough to fully wipe out rental income tax for 10 to 15 years. Under micro-BIC, the 50% flat allowance is simpler: you deduct no expenses but are only taxed on half the rents (71% for classified tourist rentals). Capital gains on resale fall under the personal capital gains regime (allowances based on holding period).
Drawbacks and limits
The real regime requires strict bookkeeping (ledger, 2031 declaration, tax bundle), generally delegated to a chartered accountant (EUR 300-600/year). Depreciation, though advantageous short-term, is NOT transferable to other properties' rents and carry-forward in case of loss is limited. On resale, depreciation does NOT reduce the taxable capital gain (private regime), which is overall positive but can surprise. Furnished rental requires complete equipment to provide and renew. The furnished lease (12 months renewable, 9 months for students) offers less stability than the unfurnished lease (3 years renewable).
Who is this scheme suited for?
LMNP particularly suits investors who: - Seek to optimise taxation without becoming professional. - Hold a furnished property (studio, 1-bed, 2-bed) in a student or tourist city. - Accept more demanding accounting in exchange for powerful tax effect (real regime). - Want to stay below the EUR 23,000/year receipts threshold to keep the status. It is less suited to large rental portfolios naturally exceeding thresholds (must move to LMP) or investors preferring unfurnished rental (less management, longer lease).
Quantified example
Typical case: a 25 m² studio in Lyon bought for EUR 130,000 all-in, rented EUR 600/month charges included. - Annual receipts: EUR 7,200 - Real expenses: EUR 1,500 (property tax, condo, insurance, management) - Annual depreciation: ~EUR 3,500 (property over 30 years + furniture over 7 years) - LMNP real tax result: 7,200 - 1,500 - 3,500 = EUR 2,200 taxable - At micro-BIC: 7,200 × 50% = EUR 3,600 taxable At 30% marginal rate, the real regime saves (3,600 - 2,200) × 30% = EUR 420 of tax/year, or roughly EUR 250 net after accountant fees.
How does it compare to other schemes?
Compared to micro-foncier (unfurnished rental, 30% allowance), LMNP at the real regime is significantly more powerful thanks to depreciation. Compared to the real foncier regime (unfurnished rental, deductions without depreciation), LMNP almost always wins for recent properties financed by credit. Compared to SCI under IS (which also allows depreciation), LMNP is simpler to set up (no articles, no share capital) but caps thresholds. SCI IS becomes attractive for large portfolios. Run our tax comparator to see which of the 4 regimes maximises your net cash flow on your property.