LMNP or LMP: the €23,000 threshold and comparison with your other business income

A landlord of furnished accommodation is considered a professional landlord (LMP) when two conditions are met for their entire tax household: annual revenue from furnished rentals exceeds €23,000 (including VAT), and it also exceeds the household's other earned income. Both conditions must be met. Otherwise, you are considered a non-professional landlord (LMNP).

The €23,000 threshold is also used for another test, for social security contributions. It is not subject to the same conditions. Both are explained below.

The two conditions of the tax test

The BOFiP (BOI-BIC-CHAMP-40-10, version of 15/04/2026) establishes the principle: an activity is considered professional when the annual revenue generated from this activity by all members of the tax household exceeds €23,000, and when this revenue exceeds the household's other earned income. Service-public.gouv.fr and impots.gouv.fr use the same criterion. The tax authorities' FAQ specifies that revenue is understood to be inclusive of VAT.

The BOFiP (French tax authority) states that revenue "exceeds" €23,000; the FAQ refers to revenue "less than €23,000 including VAT" for furnished rental properties (LMNP). Therefore, the case of revenue exactly equal to €23,000 is not worded in the same way: this should be verified with these sources.

What goes into the calculation

The recipes. These figures are inclusive of all taxes. They are assessed at the household level, across all furnished rentals, and per calendar year.

Other income from employment. The BOFiP (Official Bulletin of Public Finances) includes salaries and wages, agricultural profits, non-commercial profits, income of managers and partners as defined in Article 62 of the French General Tax Code (CGI), and industrial and commercial profits other than those from furnished rentals. Income from furnished rentals themselves is not included. Salaries and wages are defined according to Article 79 of the CGI, as defined by the BOFiP; the treatment of pensions and annuities is not detailed here: this should be verified.

The amount withheld. The net income for each category is calculated after deductions or allowances. Tax-exempt income is not included. Losses from previous years are not taken into account. The test is repeated annually.

A second threshold of €23,000: social security contributions

Regarding social security contributions, service-public.gouv.fr states that a landlord is considered a professional when their annual revenue exceeds €23,000 (excluding bed and breakfasts). In this case, only one condition applies. Below €23,000, the activity does not generate social security contributions, and only social levies remain due. Above this threshold, rentals require social security contributions and registration with the single business formalities office. The applicable tax regime depends on the type of furnished accommodation and the level of revenue.

When your receipts exceed €23,000 without exceeding your other business income, the tax condition of LMP is not met (you are LMNP) while the threshold for social security contributions is reached.

Not to be confused with the micro-BIC thresholds

The status (LMNP or LMP) and the tax regime (micro-BIC or actual) are subject to different thresholds. For income received from 2026 onwards, the BOFiP (ACTU-2025-00127, version of 19/08/2026) places all furnished rentals below the €83,600 micro-BIC threshold, with a 50% allowance, and unclassified furnished tourist accommodations below a €15,000 threshold with a 30% allowance. Service-public.gouv.fr (F34102) distinguishes €77,700 for 2025 income and €83,600 for 2026 income; The impots.gouv.fr page on "Furnished Rentals," cited as a source, mentioned €77,700 at the time of our review on October 18, 2026. Please verify the threshold for the year you are reporting. For tax returns, the micro-BIC regime is declared on form 2042-C-PRO. For the actual expenses regime, you file form 2031 and then transfer the result to form 2042-C-PRO. Details are available on the page about the micro-BIC and actual expenses regimes.

What changes in status

Details of the LMNP deficit are on a dedicated page, as is the tax regime for LMP.

The double test: a numerical example (fictitious profile)

Situation. Four hypothetical households rent a furnished apartment. Assumptions: "other earned income" is net income from the relevant category; no other rental income.

Issue. To know for each household whether it is LMNP or LMP, and whether the social test applies.

Strategy. Compare the revenue including VAT to €23,000, then to the total of other business income. Apply the social test separately.

Result. Only household C qualifies as a furnished rental property (LMP): its revenue of €30,000 exceeds €23,000 and its other earned income exceeds €28,000. Household B exceeds the first threshold, but not the second. Household D remains a furnished rental property (LMNP) because its other earned income (€32,000) exceeds its revenue. Household A is below both thresholds. Three out of four households (B, C, D) have revenue exceeding €23,000: for them, the social security contribution threshold is reached.

These profiles are fictitious. The figures illustrate the calculation and do not predict your situation.

LMNP or LMP: what changes depending on your situation

• The composition of your business income. According to the BOFiP, the following are included in the comparison: salaries and wages, non-commercial profits, agricultural profits, income from article 62 of the CGI and industrial and commercial profits excluding furnished rentals.
• The number of rentals. The income from all furnished rentals in the household is combined.
• The services provided. Entreprendre.service-public.gouv.fr cites the para-hotel regime as applicable to services provided by at least three hotel-like establishments. The capital gains thresholds then differ.
• The year. The test is repeated every calendar year.
• Your tax residence. For a non-resident landlord, the comparison method changes from the 2026 tax year. The texts read do not formulate it in the same way: the rule depends on your situation, to be checked before deciding.

The rule depends on your situation. No results are guaranteed.