LMNP: the complete guide to the Non-Professional Furnished Rental

Do you own a Parisian apartment and want to rent it out furnished while optimizing your tax situation? The LMNP status — Non-Professional Furnished Landlord — is probably the most powerful setup at your disposal. It has existed since 1949, is accessible to individuals, and offers tax benefits that many owners discover too late.

Eligibility conditions, tax regimes, reporting obligations, profitability, 2025 changes: this guide gives you a complete and honest overview of the LMNP status to enable you to make the right decisions.

What is the LMNP status?

The status of Non-Professional Furnished Landlord applies to any individual owner who rents out furnished accommodation without making it their main activity. It covers a wide range of situations: apartments rented long-term, rentals to companies, seasonal rentals, guest rooms, and properties in serviced residences.

What distinguishes it from unfurnished rental is the tax category into which your income falls. In LMNP, your rents are not property income — they fall under Industrial and Commercial Profits (BIC), a category that opens up significantly more powerful tax optimization levers.

Who can benefit from the LMNP status?

The LMNP status is based on two conditions related to your annual rental income. You only need to meet one of the two to be eligible.

⚠️ If you exceed both thresholds simultaneously, you automatically switch to Professional Furnished Landlord (LMP) — a different regime, with additional advantages but also heavier social security obligations.

The accommodation itself must strictly be furnished within the legal definition: the tenant must be able to move in with nothing more than their personal belongings. Bedding, living and dining furniture, complete kitchen equipment, household tools — the list is fixed by decree and must be scrupulously respected.

Micro-BIC or actual regime (régime réel): which one to choose?

This is the central tax decision of the LMNP status. It has a direct impact on your taxable base — sometimes multiplying it from single to fivefold depending on your profile.

The micro-BIC: simple but limited

The micro-BIC applies automatically if your annual income remains below the current thresholds. The administration applies a standard allowance to your gross income without you having to justify any expenses.

The micro-BIC is relevant if your actual expenses are low — typically, a property purchased with cash, without a mortgage, and requiring little work. In this case, the standard allowance is sufficient to reduce your tax burden without accounting complexity.

The actual regime: the lever of optimizing owners

This is where the LMNP status reveals its full power. Under the actual regime, you deduct all of your real expenses: loan interest, co-ownership charges, insurance, rental management fees, property tax, and the business property contribution (CFE).

But the decisive advantage is the accounting depreciation of the property and furniture. Your apartment is depreciated over 40 to 50 years, and your furniture over 5 to 10 years. These depreciation allowances reduce your taxable income each year — without you having to spend a single extra euro.

Concrete example — 20 m² studio in Paris, purchased for €240,000, rented for €708/month:

The result speaks for itself. With an ongoing mortgage and actual expenses, the actual regime can reduce your taxable base to almost zero for many years.

💡 Good to know: if your expenses and depreciation exceed your income, you generate a deficit that can be carried forward to your furnished BIC income for the next 10 years. This is a long-term tax optimization tool that the micro-BIC does not offer.

Other taxes and contributions to anticipate

LMNP status is not limited to income tax. Two other levies must be integrated into your profitability calculation.

The CFE (Business Property Contribution) is due by any furnished landlord, including individuals in LMNP. Its amount depends on the municipality and the rental value of the property. An exemption is possible if your annual income does not exceed €5,000.

Social security contributions at 17.2% (CSG, CRDS, solidarity tax) apply to your net taxable income as soon as your annual revenues exceed €23,000. They are added to your income tax.

Compulsory formalities: obtaining your SIRET number

Before receiving your first rent in LMNP, you must register with the INPI within 15 days of starting your activity. This process is done online on the INPI website (procedures.inpi.fr) using the P0i form.

There, you declare the start of your activity, your status as a non-professional furnished landlord, your chosen tax regime (micro-BIC or actual), and your VAT status. In return, you receive a SIRET number, which is essential for all your tax declarations.

⚠️ This step is often forgotten by new landlords, who begin collecting rent without being registered. Failing to register exposes you to tax adjustments.

How to declare your LMNP income?

The declaration varies depending on the chosen regime.

Under the actual regime, the tax package includes a balance sheet and an income statement. Hiring a chartered accountant is highly recommended — their fees are themselves deductible from your expenses.

Exemption cases to know

If you rent out part of your primary residence, certain income may be entirely exempt from income tax.

What profitability can you expect from LMNP in Paris?

The profitability of an LMNP investment in Paris is based on three cumulative benefits.

First, higher rents: a furnished property generally rents for 10 to 20% more than an equivalent unfurnished property, and the security deposit represents two months' rent instead of one.

Second, very low taxation under the actual regime: thanks to depreciation, many LMNP owners pay no tax on their rental income for 5 to 10 years — sometimes longer.

Finally, the capital gain on resale remains subject to the individual tax regime (and not the professional regime), with progressive allowances based on the holding period: total exemption from income tax after 22 years, and from social security contributions after 30 years.

⚠️ 2025 change to note: the 2025 Finance Act introduced the reintegration of depreciation into the capital gains calculation upon resale. In practice, the taxable capital gain will be calculated based on the purchase price minus the deducted depreciation — which mechanically increases the taxable capital gain in the event of resale after several years of depreciation. This is a point to anticipate with your accountant if you plan to resell in the medium term.

Investing successfully in LMNP in Paris: the essential benchmarks

Paris remains one of the most secure rental markets in France: rental vacancy is structurally low, demand for furnished accommodation is strong year-round, and tenant profiles are diverse — students, expatriates, mobile executives, diplomats.

A few areas of vigilance to maximize your yield:

Focus on small spaces (studios, 1-bedroom apartments): these are the most in-demand types in Paris and offer the best return per square meter. Check the property's EPC (DPE) before buying: properties rated F will be banned from rental from 2028, and E-rated ones from 2034. Anticipate the cost of upgrading to standards in your profitability calculation. Inquire about rent control in the targeted district: the increased reference rent varies depending on the area, the surface, and the construction period.

Frequently Asked Questions on LMNP

Can you combine a SCI and LMNP?

In principle, a SCI subject to income tax cannot carry out commercial activity — and furnished rental is considered commercial. However, there is a tolerance: if the LMNP income represents less than 10% of the SCI's annual turnover, the furnished activity remains possible. Beyond that, the SCI switches to corporate tax (IS) — which fundamentally changes the taxation upon resale.

Is LMNP status accessible to non-residents?

Yes. An owner living abroad can choose LMNP status for a property located in France. The limit to respect: if their rental income exceeds €23,000, they switch to LMP. Bilateral tax treaties apply to avoid double taxation depending on the country of residence.

What are the main changes to LMNP in 2025?

The 2025 Finance Act modified several important parameters: reintegration of depreciation into the calculation of capital gains on resale, lowering of caps and allowance rates of the micro-BIC for unclassified tourist rentals, elimination of the tax advantage linked to membership in an approved management organization, and new VAT rules for short-term rentals of 5 nights or less.

Do you want to rent out your property under LMNP in Paris?

BAUVAUT assists Parisian owners in all stages of their rental project — from rent estimation to daily management, including listing and selecting tenants. Whether you choose a long-term lease, a mobility lease, or a Civil Code lease, we build the strategy tailored to your property with you. Contact us for a free initial consultation.