LMP : statut Loueur Meuble Professionnel
What is this scheme?
LMP (Professional Furnished Landlord) status is the professional version of LMNP. It applies automatically as soon as BOTH conditions below are met: - annual furnished rental receipts above EUR 23,000 (charges included), AND - receipts above the household's other activity income (salaries, BNC, other BIC, etc.). No optional process applies: the switch is mechanical based on the income declaration.
Eligibility requirements
Three conditions, the first two cumulative: 1. Furnished receipts > EUR 23,000/year (rents charges included). 2. These receipts represent > 50% of the tax household income. 3. RCS registration removed since 1 January 2020: LMP status is now purely tax-and-social, without mandatory registration. Since 2020, LMP is purely tax-based: no need to register at the commercial registry, but activity must be declared (P0i) and commercial bookkeeping is mandatory.
Tax advantages
LMP's major advantage is loss carry-forward against global income with no cap. Under LMNP, losses can only be carried forward against furnished rental income (and are limited). Under LMP, they offset the entire household income (salaries, BIC, BNC), which can produce considerable tax savings in early years. On resale, LMP potentially enjoys total professional capital gains exemption (article 151 septies CGI) after 5 years of activity and if annual receipts do not exceed certain thresholds. This is a major patrimonial asset.
Drawbacks and limits
LMP is subject to social contributions of the Self-Employed Social Security (SSI). The rate is approximately 35-45% of the tax result after deductions. This can turn a tax-advantageous status into a social trap if unanticipated. The LMNP/LMP threshold is not optional: you don't choose. You must therefore steer your receipts or anticipate the switch with an accountant. Accounting is mandatory and more demanding than LMNP at the real regime.
Who is this scheme suited for?
LMP suits investors who: - Own a large furnished rental portfolio (multiple properties or service residences). - Want to maximise loss carry-forward on their global income (high marginal rate). - Accept social contributions in exchange for tax and patrimonial benefits. - Aim for capital gains exemption on resale after 5 years. It does NOT suit investors wishing to remain non-professional (dissuasive social charge).
Quantified example
Typical case: 3 furnished apartments in Marseille, annual receipts EUR 36,000, other household income EUR 40,000. Receipts (36,000) exceed 23,000 but are below 40,000: we stay LMNP. If other income drops to 30,000 (e.g. at retirement): 36,000 > 30,000, and 36,000 > 23,000. We switch to LMP. LMP tax result in case of loss: a EUR 10,000 loss in year 1 offsets EUR 30,000 of income, saving ~EUR 3,000 of tax at 30% marginal rate. But in parallel, 35% social contributions will apply to positive results in subsequent years.
How does it compare to other schemes?
LMP vs LMNP: LMP wins for large portfolios with significant initial losses; LMNP wins for modest or stabilised portfolios (no social contributions). LMP vs SCI under IS: LMP allows loss carry-forward against global income (SCI IS does not) but suffers social contributions (SCI IS does not). SCI IS is more attractive at stable high yield; LMP at startup with significant initial losses expected. Run the tax comparator to quantify the difference for your situation.