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Furnished rental
LMNP: lightly taxed rents thanks to depreciation. What changed in 2025 and 2026.
Letting furnished lets you deduct the wear and tear of the property from your rents, and often pay almost no tax for years. Two reforms have changed the calculation: on resale, and on social charges.
Two regimes
Micro-BIC or actual regime: the allowance, or expenses and depreciation.
A flat-rate allowance: 50% for a long-term let or a classified furnished tourist let, 30% up to €15,000 of receipts for an unclassified furnished tourist let (law of 19 November 2024).
You deduct actual expenses and thedepreciation of the property, excluding land, and of the furniture. Depreciation cannot create a deficit: any unused portion is carried forward to subsequent years, with no time limit (Article 39 C of the French Tax Code).
What has changed
Three rules to know before buying or selling.
For a sale since 15 February 2025, the depreciation deducted increases the taxable capital gain (Article 150 VB of the French Tax Code, 2025 Finance Act). Student and senior residences and medical care facilities remain outside this rule.
Since 2026, furnished rents have borne 18.6% in social charges, instead of 17.2% (LFSS 2026). Unfurnished lettings, for their part, remain at 17.2%.
The private landlord status, created by the 2026 Finance Act, now allows a property let unfurnished to be depreciated, subject to conditions. Furnished or unfurnished: the calculation must be redone before every purchase.
Simulators
Run the numbers with your own figures.
Frequently asked questions
What clients ask us.
Should you switch to the actual regime?
Almost always, once expenses and depreciation exceed 50% of rents: this is the case for most properties bought with a loan. The actual regime requires a specific return each year (form 2031), often handled by a chartered accountant.
When does one become a professional landlord (LMP)?
When the household's furnished rental receipts exceed €23,000 a year and the household's other earned income (Article 155 IV of the French Tax Code). The rules then change: social security contributions, business capital gains, IFI.
Does adding back depreciation make LMNP unattractive?
Not necessarily. Rents remain lightly taxed during the holding period, and individuals' capital gains are exempt from income tax after 22 years and from social charges after 30 years (Article 150 VC of the French Tax Code). For long holding periods, furnished letting often keeps the advantage.
My property is in a serviced residence: am I affected?
No, as regards adding back depreciation: residences for students, for elderly or disabled people and medical care facilities are excluded (Article 150 VB of the French Tax Code). The rise in social charges to 18.6%, however, does apply.
