Tax regime of the professional furnished rental company (LMP)
Verified 01 January 2026 - Entreprendre Public Service / Directorate of Legal and Administrative Information (Prime Minister)
The commercial activity of professional furnished rental can be exercised in business or not, under certain conditions. The tax regime of furnished professional rental (LMP) is reserved for dwelling rooms containing all the movable elements essential for normal occupation by the tenant.
To have the status of professional furnished rental (LMP), the 2 following conditions shall be combined with:
- The annual revenue derived from this activity (total rents including all taxes and charges) by all members of the tax household must exceed €23,000 on the calendar year. This must also be the case when the closure of the accounting year is made during the year. In case of creation of activity during the year, the ceiling is adjusted.
- This revenue must be greater than the total amount of the other income from the tax household (wages, other BIC).
If one of these conditions is not met, the lessor is considered as a non-professional furnished rental (LMNP).
The professional or non-professional character of the furnished rental applies to all furnished rentals of the tax home.
The rental may be seasonal only, provided that the activity is carried out in a professional and usual capacity.
VAT
Rental in furnished, without provision of service, is not subject to VAT: titleContent.
Taxation system
The professional furnished rental company is subject to income tax (IR) in the category of Industrial and Commercial Benefits (BIC) as soon as it carries out its activity in. If it carries out its activity through an SCI, it is subject to business tax (IS).
The renter furnished professional individual entrepreneur, is subject to the micro-company regime or to a real taxation regime according to its turnover (CA).
New turnover thresholds (turnover thresholds) are introduced for the rental of furnished apartments. We present the thresholds applicable to the revenues of the year 2024 and those applicable to the revenues of the year 2025.
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2024 revenues, reported in 2025
Warning
Revenue generated from 1er January 2026 (and reported in 2027) is submitted, for the application of the micro-entrepreneur (micro-fiscal) tax system, to new thresholds, of which the amount will be set by the finance law for 2026. This law must be passed in the coming weeks.
In the meantime, the budgetary provisions planned for 2025 have been renewed by a special law no. 2025-1316 of 26 december 2025.
The professional furnished rental company that rents out furnished tourist classifiedis subject to the micro-company regime if its AC does not exceed €188,700.
The professional furnished rental company that rents out tourist furnished apartments not classified is subject to the micro-company regime if its AC does not exceed €77,700.
For more information, you can consult our fact sheet on the tax regime for micro-companyon our website.
2025 revenues, reported in 2026
Warning
Revenue generated from 1er January 2026 (and reported in 2027) is submitted, for the application of the micro-entrepreneur (micro-fiscal) tax system, to new thresholds, of which the amount will be set by the finance law for 2026. This law must be passed in the coming weeks.
In the meantime, the budgetary provisions planned for 2025 have been renewed by a special law no. 2025-1316 of 26 december 2025.
The professional furnished rental company that rents out furnished tourist classifiedis subject to the micro-company regime if its AC does not exceed €77,700.
The professional furnished rental company that rents out tourist furnished apartments not classified is subject to the micro-company regime if its AC does not exceed €15,000. If this is his only rental activity, then he will no longer be able to benefit from the micro-company regime, the overall turnover threshold to be a professional furnished rental (€23,000) being greater than the micro-company threshold (€15,000).
For more information, you can consult our fact sheet on the tax regime for micro-companyon our website.
Since it is a professional activity subject to the real tax regime (except for micro-company), the following charges may be deducted from income tax (i.e. rent collected):
- Establishment costs (notary fees, business formation in particular)
- Maintenance and repair costs
- Local taxes
- Management and insurance costs
- Interest on borrowing
- Depreciation furniture and improvements (over a period of 5 to 10 years, for a rate of between 10% and 20% per year)
In addition, the professional may depreciate the premises. The purchase price of real estate does not constitute a deductible expense, but can be amortized according to the actual holding period. If it is estimated at 50 years, 2% from the price of the property may be deducted during this period each year.
Exemption of capital gains on disposal
The type of exemption changes depending on the amount of revenue:
- The exemption is total when rental income is less than €90,000 excluding taxes (excluding taxes) during the 2 calendar years preceding the transfer. It is also necessary that the activity of renting in furnished has started for at least 5 years.
- The exemption is partial in the event that such revenue is between €90,000 and €126,000 HT.
The activity sometimes includes services similar to those of hotels: breakfast, regular cleaning of premises, provision of linens, reception of customers. Thus, when at least 3 of these services are offered, the applicable tax regime is that of para-hotels, and not that of furnished rentals. In this case, the thresholds are as follows:
- The exemption is total when rental income is less than €250,000 excluding taxes (excluding taxes) during the 2 calendar years preceding the transfer. It is also necessary that the activity of renting in furnished has started for at least 5 years.
- The exemption is partial in the event that such revenue is between €250,000 and €350,000 HT.
Rented furnished premises are subject to the following local taxes:
- Property tax,
- Company Property Tax (CFE), with some exceptions. To learn more about exceptions, you can visit the page dedicated to furnished rentals from the website impots.gouv.fr.
- Business Value Added Tax (CVAE) in case of turnover excluding tax greater than €500,000
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Definition and conditions of the LMP (see IV)
VAT exemption