Tax regime of the professional furnished rental company (LMP)

Verified 21 February 2026 - Entreprendre Service Public / (Prime Minister)

The commercial activity of professional furnished rental can be carried out in business or not, under certain conditions. The tax regime of professional furnished rentals (LMP) is reserved for residential premises containing all the movable elements essential for normal occupation by the tenant.

To have the status of professional furnished rental (LMP), 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 higher than the total amount of the other income from the tax household's activities (wages, other BIC).

If one of these conditions is not met, the lessor is considered to be a non-professional furnished rental (LMNP).

Warning  

For non-French residents, the preponderance condition is assessed by comparing the income from furnished rentals with the similar professional income received in their State of residence and subject to a tax equivalent to French income tax.

The professional or non-professional character of the furnished rental applies to all furnished rentals of the tax home.

The rental can only be seasonal, as long as the activity is carried out in a professional and usual capacity.

TVA

Rental in furnished, without service, is not subject to the TVA: titleContent.

Taxation system

The professional furnished rental company is subject to income tax (IR) in the category of industrial and commercial benefits (BIC) as long as he carries out his activity in individual business. If it operates through an SCI, it is subject to business tax (IS).

The renter in furnished professional individual entrepreneur, is subject to the micro-company regime or to a real regime of taxation according to its turnover ({circumflex over (X)}).

New turnover thresholds ({circumflex over ({circumflex over)}) have been introduced for the rental of furnished tourist accommodation. We present you the thresholds applicable to income for 2024 and those applicable to income for 2025.

Répondez aux questions successives et les réponses s’afficheront automatiquement

Revenues for 2025, reported in 2026

  • The professional furnished rental company that rents out tourist furnished apartments classifiedis subject to the micro-company procedure if its {circumflex over (a)} does not exceed €77,700.
  • The professional furnished rental company that rents out tourist furnished apartments not classified is subject to the micro-company procedure if its {circumflex over (a)} 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 global threshold of {circumflex over (x)} to be a professional furnished rental company (€23,000) being greater than the threshold of the micro-company (€15,000).

For more information, you can consult our fact sheet on the micro-company tax systemon our website.

Revenues for 2026, reported in 2027

The professional furnished rental company that rents out tourist furnished apartments classifiedis subject to the micro-company procedure if its {circumflex over (a)} does not exceed €83,600.

The professional furnished rental company that rents out tourist furnished apartments not classified is subject to the micro-company procedure if its {circumflex over (a)} 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 global threshold of {circumflex over (d)} to be a professional furnished rental (€23,000) being greater than the threshold of the micro-company (€15,000).

For more information, you can consult our fact sheet on the micro-company tax systemon our website.

As this 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 charged):

  • Establishment costs (notary fees, business constitution 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 tax (HT) 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 case where such revenue is between €90,000 and €126,000 HT.

The activity sometimes includes services similar to those of hotels: breakfast, regular cleaning of the premises, provision of linen, reception of the 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.E In this case, the thresholds are as follows:

  • The exemption is total when rental income is less than €250,000 before tax (HT) 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 case where such revenue is between €250,000 and €350,000 HT.

Furnished rented premises are subject to the following local taxes:

Who can help me?

The Public Service company Advisors

Do you have a project, a difficulty, a question of everyday life?
Simple and free: you are called back within 5 days by THE advisor who can help you.

Get a phone call with an advisor