In summary…
For a single, self-employed lawyer €70,000 of profit, therefore in the tax bracket at 30%, €100,000 placed 20 years report €41,850 net of tax and fees in SCPI (real estate investment company) units, i.e. 2.19 % per year, compared €39,091 In LMNP (furnished rental of non-professional status) under the actual expense regime, the tax rate is 2.15 times % per year. The difference is €2,758: at 30 times %, the two options are equivalent, and LMNP only takes the lead after 26 years of ownership. At 41 times % (€100,000 profit), the order is reversed: LMNP under the actual expense regime wins from the 7th year onwards, with €37,473 compared to €33,748 over 20 years. The micro-BIC regime yields €29,256, significantly less. Neither option alone closes the retirement gap. €15,738 per year between the pension from the National Fund of French Bars (CNBF), estimated at €33,262, and 70 % of the profit: €100,000 covers approximately 16 %. Answer: at 30 %, the SCPI is sufficient and can be resold without capital gains tax; the LMNP under actual costs only prevails if the lawyer exceeds 41 % of tax or keeps the property for more than 26 years.
1. How much is missing from the retirement of a lawyer with a profit of €70,000?
The CNBF pays two pensions which are added together: the basic scheme, calculated in quarters, and the supplementary scheme, calculated in points. The typical case: 35 years of contributions at €70,000 of annual benefits, retirement at age 67, the age for full pension benefits regardless of the length of insurance, class 2 for supplementary insurance. The values are those of the 2026 pension fund schedule.
| Diet | Membership fee 2026 (profit of €70,000) | This generates the rights | Annual pension |
|---|---|---|---|
| Base | €1,988 lump sum (six years of seniority or more) + €2,240 (3.20 % of net income) = €4,228 | 140 quarters: €19,154 ÷ 172 quarters × 140 | €15,590 |
| Complementary | €6,165 (7 % up to €42,507, 11.6 % above that) | 492 points per year (membership fee ÷ €12.5229), i.e., 17,220 points × €1.0262 | €17,671 |
| Total | €33,262 |
To recover 70 % of the profit, or €49,000 per year, it is missing €15,738 per year. The pension represents 48% of the profit. This figure is the requirement that the LMNP (furnished rental property) or SCPI (real estate investment trust) must cover. The detailed calculation is explained in our article on the... deduction from the PER in 2026, with the same cash values for a profit of €100,000.
2. Why the 30 % tranche changes the arbitration: the actual calculation
The rate that matters is the marginal tax bracket, This refers to the tax rate applied to the last euro of income. The 2026 tax brackets (for 2025 income) apply, per share of the family quotient, 11 % from €11,600 to €29,579, 30 % up to €84,577, and 41 % up to €181,917 (Law No. 2026-103, Article 4). We calculate the tax with and without rental income: the tax bracket is based on the actual taxable amount, not an assumed amount. For retirees, the pension is subject to a 10 % allowance (minimum €454 per pensioner, maximum €4,439 per tax household for the 2026 tax return).
| Situation (sole income of the lawyer) | Taxable income | Income tax | Marginal tax rate on rents or distributions |
|---|---|---|---|
| Single, 1 share, employed | €70,000 | €14,104 | 30% |
| Married couple, 2 shares, employed | €70,000 | €7,208 | 30% |
| Retired single | €29,935 (pension of €33,262 minus €3,326) | €2,085 | 30% |
| Retired married couple | €29,935 | €741 | 11% |
A single lawyer remains at 30 % throughout their working life and retirement, where their taxable pension of €29,935 exceeds the threshold of €29,579 by only €356. A couple with two tax units drops from 30 % to 11 %. The deductible portion of the generalized social contribution and other household income are disregarded. The following calculation uses these tax brackets year by year, with 15 years of working life (from age 52 to 67) followed by 5 years of retirement.
3. The rules for furnished rental properties (LMNP) in 2026
LMNP refers to the rental of furnished accommodation by an individual who does not use it as their professional activity. The status and tax regime of the rental income are just as important as the rent itself. Details of the scheme can be found on our page. non-professional furnished rental provider.
| Point | Rule in 2026 |
|---|---|
| Micro-BIC (industrial and commercial profits) | For long-term furnished rentals: revenue ceiling €83,600 and a standard deduction of 50%. The charges are not deductible. For an unclassified furnished tourist accommodation: €15,000 and 30 %. |
| Actual regime | Actual deductible expenses and charges, plus’depreciation of the purchase price of the property and furnishings. The option must be exercised before the filing deadline and is tacitly renewed. A deficit can only be deducted from non-professional furnished rental income over the following ten years. |
| Depreciation limit | The deductible depreciation cannot exceed the rents less expenses for the year (Article 39 C of the French General Tax Code; BOFiP BOI-BIC-AMT-20-40-10-20, paragraph 80). The excess can be carried forward and deducted from the profits of subsequent years (paragraph 90). |
| LMNP or professional furnished rental | The rental is considered professional if the annual income of the tax household exceed €23,000 and exceed the other earned income of the household (BOFiP BOI-BIC-CHAMP-40-10, paragraph 40). A lawyer with €70,000 in profit never meets the second condition with rents of €5,400: he remains LMNP. |
| Business property tax | Furnished rentals are a commercial activity: business property tax is due, unless the revenue is €5,000 or less (impots.gouv.fr). With €5,400 in rent, the threshold is exceeded: the contribution falls under the standard case expenses. |
| Social security contributions on furnished rentals | 18.6% : generalized social contribution of 10.6 %, contribution for the repayment of the social debt of 0.5 %, solidarity levy of 7.5 %. |
| Resale: reintegration of depreciation | For the transfers carried out effective February 15, 2025, The purchase price is reduced by all depreciation deducted under the actual expense method (Article 84 of Law No. 2025-127 of the 2025 Finance Act; ministerial response published in the Official Journal of March 24, 2026, which specifies that this rule applies regardless of the rental date). An exception cited by the tax authorities is certain managed residences (student and senior residences). The capital gain is then subject to the same tax regime as for individuals: 19% of income tax and 17.2% of social security contributions, after allowances for the holding period. |
| Micro-BIC and resale | Under the micro-BIC regime, no depreciation is deducted: therefore, none needs to be added back. Capital gains are calculated on the purchase price plus expenses. |
4. The rules of the SCPI in 2026
A SCPI (Société Civile de Placement Immobilier) collects savings from its shareholders, buys properties, and distributes the net rental income to them. For a French shareholder, these distributions are... rental income, taxed according to the same scale as other income. Our page SCPI describes how the shares work.
| Point | Rule in 2026 |
|---|---|
| Social security contributions on property income | 17.2% : 9.2 % of generalized social contribution, 0.5 % and 7.5 %. |
| Micro-land | Up to €15,000 of gross property income per year for the household, allowance of 30 %. The micro-property tax regime does not apply if the household only receives property income from SCPI units. This regime is open if the lawyer also declares the rental income from a property they own directly (see the 2026 Income Tax Guide, page 158). A lawyer who only owns SCPIs (real estate investment trusts) is therefore subject to the actual tax regime: the entire distribution is taxable. |
| Distribution rate | Average of 4.91% for 2025, weighted by capitalization and compared to reference prices; the average weighted share price fell by 3.45 % over the year (French Association of Real Estate Investment Companies and Institute for Real Estate and Land Savings, press release of February 10, 2026). |
| Resale of shares | In the calculation, the shares are taken back at their redemption value (€90,000), which is less than the price paid (€100,000): no capital gains tax is withheld. |
5. Assumptions and calculation based on €100,000 over 20 years
| Calculation assumption | Value retained |
|---|---|
| Profile | A 52-year-old single lawyer, with a constant taxable income of €70,000 and an estimated pension of €33,262 at age 67. These figures are constant euros: no inflation, no rent increases, and no reinvestment of income. |
| Capital | €100,000 cash in each option, no credit |
| SCPI | Distribution of 4.91 % of the capital, or €4,910 per year, entirely in French rental income. Subscription fees of 10 % of the price (assummary): upon exit, the shares are worth €90,000, share price unchanged. |
| LMNP: acquisition | Studio or one-bedroom apartment at €87,500 in the deed, acquisition costs of €6,562 (7.5 %), furniture of €5,938: €100,000 total |
| LMNP: operation | Annual rental income of €5,400 (vacancy deducted), expenses of €2,000 (property tax, co-ownership, insurance, business property tax, accountant) |
| LMNP: depreciation | Land 15 % of the price, building and costs over 40 years (€2,023 per year), furniture over 7 years (€848 per year): to be determined with the accountant |
| LMNP: resale | Property resold at the original purchase price, without sales costs. All depreciation deducted, including furniture, is reinstated (conservative assumption). No flat-rate 15 % for renovations. |
| Detention | 20 years (retirement at 72 years); variations at 15 and 25 years |
| Simplifications | The deductible portion of the generalized social contribution is ignored; the discount and cap on the family quotient have no effect at these levels. |
Typical case
Situation. A 52-year-old single lawyer, practicing in Lyon, earns €70,000 in profit annually and will retire at 67 after 35 years of contributions to the CNBF (French National Bar Association Pension Fund). He has €100,000 in savings and is considering either a furnished apartment or shares in a real estate investment trust (REIT).
Issue. His CNBF pension is estimated at €33,262, representing 48 % of his earnings: he is short €15,738 per year to reach 70 %. Every euro of rent or distribution falls within the 30 % bracket, both while working and in retirement.
Strategy. Under the actual expenses regime for furnished rental properties (LMNP): €5,400 in rent minus €2,000 in expenses leaves €3,400. Depreciation of €2,872 per year for 7 years, then €2,023, reduces taxable income to €528 in the first year: this results in €159 in income tax and €98 in social security contributions. Under the actual expenses regime for real estate investment trusts (SCPI): €4,910 in distributions, fully taxable: €1,473 in income tax and €845 in social security contributions in the first year. Upon resale in 2046 (Article 84 of Law No. 2025-127), the LMNP includes €46,406 in depreciation: a capital gain of €39,844, reduced by allowances to €757 in income tax and €5,157 in social security contributions.
Result. After 20 years, the SCPI leaves him €41,850 of net gain (2.19 % per year), the LMNP under the actual regime €39,091 (2.15 % per year): €2,758 difference. LMNP brings in more each year (€2,923 vs. €2,592 in operation) but recovers less capital (€81,586 vs. €90,000), due to expenses, furniture and exit tax.
Average annual net income, before resale
| Option | Average net income during the activity (15 years) | Average net income during retirement (5 years) | Net of retirement capital |
|---|---|---|---|
| LMNP under the actual regime | €2,923 | €2,731 | 2.73% |
| LMNP in micro-BIC | €2,088 | €2,088 | 2.09% |
| SCPI, actual rental income | €2,592 | €2,592 | 2.59% |
| SCPI in micro-landlord scheme (conditions below) | €3,288 | €3,288 | 3.29% |
Net gain after tax and social security contributions, depending on the holding period
The net gain is the sum of each year's net income and the net exit value, minus the initial €100,000 investment. In parentheses: the average annual net return, i.e., the internal rate of return (IRR) of the cash flow (excluding inflation).
| Option | Resale at 15 years (age 67) | Resale at 20 years (age 72) | Resale at 25 years old (77 years old) |
|---|---|---|---|
| LMNP under the actual regime | €24,822 (1.82%) | €39,091 (2.15%) | €54,793 (2.39%) |
| LMNP in micro-BIC | €18,817 (1.33%) | €29,256 (1.55%) | €39,695 (1.68%) |
| SCPI, actual rental income | €28,887 (2.01%) | €41,850 (2.19%) | €54,812 (2.29%) |
| SCPI in micro-landlord scheme (conditions below) | €39,316 (2.74%) | €55,755 (2.91%) | €72,193 (3.01%) |
The transition from furnished rental property tax (LMNP) to actual expenses after 20 years
| Item | Amount |
|---|---|
| Depreciation deducted over 20 years, then added back | €46,406 |
| Gross capital gain (selling price − purchase price less depreciation, plus expenses) | €39,844 |
| Capital gain subject to income tax (90% allowance %) | €3,984 |
| Capital gain subject to social security contributions (allowance of 24.75% %) | €29,982 |
| Income tax at 19 % | €757 |
| Social security contributions at 17.2 % | €5,157 |
| Exit tax | €5,914 |
The capital gain subject to income tax remains below €50,000: the tax on high real estate capital gains does not apply. If the furniture were not included in the taxable income, the exit tax would decrease by €881.
6. How to read the result
- The slice decides. At 30% of the % tax bracket, then 30% of the % tax bracket, depreciation almost reduces the annual tax on the furnished rental property (LMNP) to zero, but exit tax, the capital tied up in furniture, and expenses bring it to €39,091 over 20 years, compared to €41,850 for the SCPI (real estate investment trust). The LMNP under the actual expense method only equals the SCPI after 26 years of ownership. For a couple with two tax units (30% of the % tax bracket, then 11% of the % tax bracket), the SCPI yields €6,115 more than the LMNP under the actual expense method. At 41% of the % tax bracket, the opposite is true: the LMNP surpasses it from the 7th year onwards.
- The micro-BIC is a poor choice for this profile. It leaves €29,256 over 20 years: the 50% % allowance imposes €2,700 per year whereas the actual amount only imposes €528 in the first year.
- Rent changes the order. The LMNP (furnished rental property) under the actual expenses regime equates to the SCPI (real estate investment trust) at €5,668 in annual rent, representing a return of 5.67 times the capital. With €6,000 in rent, the LMNP's gain rises to €45,259, and with €6,600, to €51,427; the SCPI's return remains at €41,850. A return of 5.67 times the capital requires a well-located property with no vacancies or renovations.
- The resale price is just as important as the tax. A 10% price decrease results in €31,640 for the LMNP (furnished rental) and €32,850 for the SCPI (real estate investment trust); a 10% increase results in €46,543 and €50,850 respectively. The total gain depends more on the resale price than on the chosen tax regime.
- The micro-land regime changes the SCPI, but not for everyone. If the lawyer also rents out an unfurnished property directly, the 30% tax allowance increases the SCPI's gain to €55,755. The total gross rental income must then remain below €15,000.
- The retirement gap remains open. In retirement, €100,000 yields €2,731 net per year in furnished rental properties (LMNP) and €2,592 in real estate investment trusts (SCPIs), representing 17% and 16% of the €15,738 shortfall. Bridging this gap alone would require approximately €580,000 in furnished rental properties or €610,000 in SCPIs.
The same calculation applies depending on the tax profile (20 years).
| Profile | Active section | Retirement tranche | Net profit from furnished rental property (LMNP) under the actual regime | Net gain from SCPI | LMNP over SCPI starting from |
|---|---|---|---|---|---|
| Single, €70,000 profit | 30% | 30% | €39,091 (2.15%) | €41,850 (2.19%) | 26 years old |
| Married couple (2 shares), €70,000 profit | 30% | 11% | €40,399 (2.21%) | €46,514 (2.39%) | over 35 years |
| Single, €100,000 profit | 41% | 30% | €37,473 (2.06%) | €33,748 (1.75%) | 7 years |
The third profile also recalculates the CNBF pension with a benefit of €100,000, using the same rules: his retirement remains in the 30 % bracket.
7. Before either: the retirement savings plan
At 30 %, a tax-deductible contribution to a retirement savings plan saves €0.30 in tax per euro, immediately. For this lawyer, the deduction limit for a contribution in 2026 is €7,000 (10 % of the previous year's profit, between €4,710 and €37,680 according to the BOFiP). He saves €2,100 in tax and remains at 30 % on his rental income: the PER reduces tax, whereas LMNP and SCPI generate income. The mechanism is explained on our page Individual PER and in our article on the deduction ceiling and the 2026 finance law.
Frequently asked questions
Can a self-employed lawyer remain in the LMNP (furnished rental of non-principal residence) scheme with a profit of €70,000?
Yes. Furnished rentals are considered professional only if the household's rental income exceeds €23,000 and also exceeds the household's other earned income (BOFiP, paragraph 40). With €5,400 in rent compared to €70,000 in profit, the second condition is never met.
Are the depreciation charges for furnished rental properties (LMNP) reinstated upon resale in 2026?
Yes, for sales completed on or after February 15, 2025, and for properties rented under the actual expense regime: the purchase price is reduced by all deducted depreciation. In a typical case, €46,406 in depreciation over 20 years results in a capital gain of €39,844 and €5,914 in exit tax. The tax authorities cite an exception for certain managed residences (student, senior). Under the micro-BIC regime, no depreciation is deducted, and therefore none is added back.
Can the micro-land regime be used for SCPI shares?
Not if the household receives only rental income from SCPI units. It is available if the household also declares rental income from a property it owns directly, with a maximum of €15,000 in gross rental income and a 30% allowance. Otherwise, the distribution is fully taxed according to the standard income tax scale, with 17.2% social security contributions.
What will be the social security contribution rates in 2026 on furnished rental income and on SCPI distributions?
18.6% of the tax is levied on non-professional furnished rental income (general social contribution of 10.6%, 0.5%, and 7.5%) and 17.2% on property income, including SCPI distributions (9.2%, 0.5%, and 7.5%). The service-public.gouv.fr page on these levies does not specify furnished rental income for residents: the 18.6% rate is based on its table for non-residents and the 2026 tax guide, which includes a 10.6% general social contribution on non-salaried income not subject to social security contributions.
Does a lawyer with 41,% in taxes obtain the same result?
No. With €100,000 in profit (tax bracket 41 % while working, 30 % upon retirement), the LMNP (furnished rental property) under the actual expenses regime yields €37,473 over 20 years compared to €33,748 for the SCPI (real estate investment trust), and surpasses it from the 7th year onwards. The higher the tax bracket, the greater the tax savings.
Our position
We start with your pension statement and tax assessment to determine the difference in your retirement benefits and your actual tax bracket. We then compare furnished rental properties (LMNP) and real estate investment trusts (SCPI) based on your specific figures: investment amount, holding period, and target rent. We do not draft legal documents or provide legal or accounting advice: choosing the tax regime, preparing your tax return, and developing a depreciation plan are the responsibility of your accountant, and the acquisition of the property should be handled by your notary. We receive commissions on contracts taken out through our firm.
Book an exchange with Balmont Conseil
Alexis Sagnier, financial and real estate investment advisor, insurance broker, AMF certified. ORIAS 13003497. Updated on 28/10/2026.
Official sources consulted
- CNBF, «2026 Scale» (flat-rate contributions, rates, brackets, full basic pension, acquisition cost and service value of the point): cnbf.fr
- CNBF, «Preparing for retirement» (legal age, 172 quarters, full rate at 67 years, reduction of 1.25 % per quarter): cnbf.fr
- Service-public.gouv.fr, "What is the income tax scale?" (2026 scale on 2025 income), verified on April 15, 2026: service-public.gouv.fr
- Service-public.gouv.fr, «Income tax: declaring retirement pensions» (10% allowance, minimum €454 per pensioner, maximum €4,439 per household), April 2026: service-public.gouv.fr
- Service-public.gouv.fr, "Income from furnished rentals" (micro-BIC 2026, actual regime, depreciation, deficit), verified on April 15, 2026: service-public.gouv.fr
- BOFiP, BOI-BIC-CHAMP-40-10, version of April 15, 2026 (professional nature of furnished rentals, paragraph 40): bofip.impots.gouv.fr
- BOFiP, BOI-BIC-AMT-20-40-10-20, depreciation of leased assets (deduction limit, carry-forward): bofip.impots.gouv.fr
- Directorate General of Public Finances, "I rent out furnished accommodation. Do I have to pay CFE (business property tax)?" (exemption under €5,000 of revenue): impots.gouv.fr
- Directorate General of Public Finances, Frequently Asked Questions "Furnished Rental Regime", March 2026 (reintegration of depreciation for sales from February 15, 2025, exception of managed residences): impots.gouv.fr
- Directorate General of Public Finances, "I am selling a property that was rented furnished; how is the capital gain calculated?" impots.gouv.fr
- Directorate General of Public Finances, instructions for form 2048-IMM, 2026 (rates of 19 % and 17.2 %, allowances by holding period, threshold of €50,000 for the tax on high capital gains, flat rate of 7.5 % for acquisition costs, depreciation of the furnished rental property): impots.gouv.fr
- National Assembly, written question no. 10097 and reply from the Minister published in the Official Journal of 24 March 2026 (scope of article 84 of law no. 2025-127): questions.assemblee-nationale.fr
- Directorate General of Public Finances, practical brochure on income tax 2026, aide-mémoire (general social contribution of 9.2 % on property income and of 10.6 % on non-salaried income not subject to contributions): impots.gouv.fr
- Directorate General of Public Finances, practical guide to income tax 2026, property income (micro-property income, shares in real estate companies, page 158): impots.gouv.fr
- Service-public.gouv.fr, «Social security contributions (CSG, CRDS…) on income from assets and investments» (2026 rates), verified on June 30, 2026: service-public.gouv.fr
- BOFiP, BOI-IR-BASE-20-50-20, limits on the deduction of retirement savings contributions: bofip.impots.gouv.fr
- Law No. 2026-103 on finance for 2026, article 4 (income tax scale); Law No. 2025-127 on finance for 2025, article 84 (capital gains on furnished rental properties); annual ceiling of Social Security: €48,060 in 2026, €47,100 in 2025.
- French Association of Real Estate Investment Companies and Institute for Real Estate and Land Savings, press release of February 10, 2026 on the 2025 results (average distribution rate of 4.91 %, decrease of 3.45 % in the average share price): aspim.fr
