LMNP depreciation: the essentials for optimizing your rental investment in 2026
3 minutes
Depreciation in LMNP (Non-Professional Furnished Landlord) is one of the most powerful tax levers to improve the profitability of a furnished rental investment. Well understood and correctly applied, it allows you to significantly reduce, or even eliminate, your taxation on rental income while enhancing your assets.
However, it is also a technical mechanism that follows strict rules. Certain common mistakes can reduce its effectiveness or expose you to tax audits if they are not correctly avoided.
What is depreciation in LMNP?
Depreciation is an accounting operation that consists of spreading the cost of a property or equipment over its estimated useful life. In furnished rentals, this means deducting part of the value each year:
Of the accommodation (excluding land)
Of furniture and equipment
Of improvement or equipment works
This deduction reduces your taxable income and therefore your tax base.
Unlike the micro-BIC scheme, depreciation is not applicable when you choose this simplified scheme: it is reserved for the real scheme (régime réel), which is generally more advantageous for investments financed by credit or with high expenses.
Why is depreciation interesting?
1. Reduction of tax on rental income
In LMNP under the real scheme, depreciation allows you to significantly lower, or even eliminate, the tax due on the income generated by your furnished rental. With this mechanism, a large number of owners do not pay tax for many years.
2. Deduction of actual expenses
In addition to depreciation, all expenses related to the operation of the property (loan interest, works, insurance, property tax, etc.) are also deductible, which further optimizes the taxation of the furnished property.
3. Carry-forward of unused depreciation
If depreciation exceeds your profit, it cannot create a deficit (the so-called "non-depreciable deficit" rule), but the surplus can be carried forward to subsequent years without limit.
How does depreciation actually work?
What base to depreciate?
You can depreciate:
The value of the real estate excluding land
Furniture and equipment (kitchen, household appliances, furniture...)
Certain costs related to the purchase or work (notary fees, sustainable improvements)
The land, on the other hand, is never depreciable.
Typical depreciation period
Real estate (excluding land): generally between 25 and 30 years
Furniture and equipment: often between 5 and 10 years
Sustainable work or fittings: according to their nature and estimated useful life
Depreciation is therefore spread over several years, which allows tax deductions to be spread out.
Common mistakes to avoid
The original article identifies several common mistakes in calculating and implementing LMNP depreciation. Among the main ones:
1. Wanting to depreciate the land
The land is not an expense related to the operation and cannot be depreciated.
2. Incorrect component breakdown
Depreciating the entire property without distinguishing its components (structure, plumbing, finishes) can distort the calculation.
3. Omitting the pro-rata temporis in the first year
Depreciation must be calculated in proportion to the months actually rented in the first year.
4. Confusing depreciation and expenses
Not all expenses are depreciable. Only durable items (furniture, fittings, major works) are.
5. Not anticipating the impact of resale
Since 2025, depreciation can be reintegrated for the calculation of the real estate capital gain during a sale, which can reduce the net gain.
LMNP and micro-BIC scheme: what changes
If you opt for the micro-BIC, depreciation is not applicable. In this case, the tax on rental income is calculated after a flat-rate deduction (50% or 71% for classified furnished properties), but without the possibility of deducting depreciation.
To benefit from depreciation, it is therefore necessary to choose the real scheme (régime réel) when making your tax declaration.
LMNP depreciation: key points to remember
It is a powerful tax tool to reduce your taxes on rent.
It is only accessible under the real scheme, not in micro-BIC.
You can depreciate the property (excluding land), furniture, and certain works.
Unused depreciation can be carried forward without limit.
The rules have evolved in 2025 regarding the reintegration of depreciation upon resale, to be taken into account in your strategy.
Conclusion
LMNP depreciation is a central component of the tax strategy in furnished rentals. Well mastered, it allows you to:
Optimize net yield
Significantly limit taxation
Structure a high-performing and sustainable rental project
But it requires accounting rigor and informed choices, particularly of the appropriate tax scheme.
Contact us for a personalized study of your LMNP property.
