LMNP Tax Guide 2026: Everything You Need to Know to Optimize Your Furnished Rental

You rent out your furnished property for short or medium stays and want to finally understand what LMNP tax status means for you in 2026? This guide gives you the full picture: status, tax regimes, deductible expenses, depreciation, capital gains, social contributions, and local taxes. With concrete numbers and a link to each dedicated calculator so you can run your own simulations as you go.

This is the reference article to bookmark. We keep it up to date with every regulatory change.

LMNP: What Is It Exactly?

LMNP stands for Loueur en Meublé Non Professionnel (Non-Professional Furnished Rental Landlord). It's the tax status that automatically applies when you rent out a furnished property on a regular basis and your rental income stays below certain thresholds.

You qualify as LMNP if you meet all 3 of these conditions:

• You rent out a furnished property (equipped so a tenant can move in immediately: bed, table, chairs, kitchenware, stovetop, fridge, etc. -- the exact list is defined by decree)
• Your furnished rental income is under €23,000 per year OR represents less than 50% of your household's total taxable income
• You are not registered with the RCS as a professional furnished rental operator

If you exceed these thresholds, you automatically switch to LMP (Loueur en Meublé Professionnel) status. The consequences are significant: mandatory social contributions, professional capital gains treatment, and inclusion in the IFI (wealth tax). Our LMP calculator simulates the impact if you're close to that threshold.

Required Steps Before You Start Renting

Before you collect your first euro, several administrative steps are mandatory. Many landlords skip them and regret it during an audit.

1. Get a SIRET Number

Every LMNP landlord must register with the INSEE and obtain a SIRET number. The process is free, done online through the INPI's single business portal, and takes about ten days. Without a SIRET, you cannot opt for the actual-cost regime.

Full details and a step-by-step walkthrough in our guide: SIRET / SIREN for short-term rentals.

2. Register with Your Town Hall

Depending on your municipality and property type (primary or secondary residence, classified or unclassified tourist accommodation), you may need to file a declaration with your town hall or obtain a registration number (and in cities like Paris, Lyon, and Bordeaux with populations over 200,000, often a change-of-use permit as well).

The Loi Le Meur of November 19, 2024 tightened these requirements in 2025-2026. Lower caps, stricter enforcement, heavier penalties. See our full dossier on the Loi Le Meur.

3. Choose a Tax Regime

This is the decision that will have the biggest impact on your tax bill. Two options, detailed right below.

Micro-BIC vs. Actual-Cost Regime: The Key Choice

All LMNP income is taxed under the BIC category (Bénéfices Industriels et Commerciaux, or industrial and commercial profits). But you have two ways to calculate your tax:

The Micro-BIC Regime

This is the default regime, simple and with no accounting required. The tax authority applies a flat allowance to your gross income, then taxes the remainder at your marginal income tax rate (TMI).

2026 Allowances:

• 50% for standard furnished rentals (long-term, student, mobility leases)
• 30% for unclassified tourist furnished rentals (the majority of Airbnbs)
• 71% for classified tourist furnished rentals ("meublé de tourisme" label, 1 to 5 stars)

The 30% allowance for unclassified furnished rentals is new as of 2025, introduced by the Loi Le Meur. Before 2025, it was 50%. This is a clear tightening of the rules.

Income caps to stay in the micro-BIC regime:

• €77,700 for standard furnished rentals
• €15,000 for unclassified tourist furnished rentals (since 2025 -- previously €188,700)
• €77,700 for classified tourist furnished rentals and bed-and-breakfasts (since 2025 -- previously €188,700)

Above these thresholds, the actual-cost regime becomes mandatory.

The Actual-Cost Regime

More complex, but often far more advantageous. You deduct your actual expenses and depreciation. In many cases, the taxable profit becomes zero or even negative (losses can be carried forward for 10 years).

You can opt into the actual-cost regime at any time. The election is valid for 1 year and automatically renewed.

To figure out which regime is right for you, our Micro-BIC vs. Actual-Cost calculator compares both scenarios in 2 minutes. Spoiler: as soon as you have an outstanding mortgage, the actual-cost regime almost always wins.

Actual-Cost Regime: Deductible Expenses in Detail

This is the power of the actual-cost regime: almost every expense related to your rental is deductible, including depreciation (which doesn't correspond to any cash outflow).

Direct Expenses

• Loan interest and arrangement fees
• Property tax (taxe foncière)
• Non-recoverable building management charges
• Insurance (landlord insurance, rent default insurance)
• Property management and concierge fees
• Accountant fees (typically €400-800/year for an LMNP)
• Maintenance and repair costs (excluding major improvement works)
• Cleaning between guests and supplies
• Platform commissions (Airbnb, Booking, Abritel)
• Bank fees, internet/electricity subscriptions, phone

Depreciation

Depreciation is the accounting deduction for the loss of value of your property and its furnishings. Each year, you deduct a portion of the original value:

• Building structure: depreciated over 25 to 40 years (30 years on average)
• Furniture and equipment: depreciated over 5 to 10 years
• Major improvement works: depreciated over 10 to 20 years
• Land: not depreciable (typically 10-15% of the purchase price)

Example: a studio purchased for €200,000 with €10,000 in furniture. The building (€170,000 after deducting the land value) is depreciated over 30 years = €5,667/year. The furniture over 7 years = €1,428/year. Total: ~€7,100 in non-cash deductions per year, without spending an extra cent.

Our LMNP depreciation calculator gives you the exact figures for your property.

Social Contributions: Who Pays What?

The topic that worries landlords most, and for good reason. Social contributions can represent 35-43% of taxable profit. Here's who is affected in 2026.

Standard LMNP

No social contributions. Only social levies at 17.2% (CSG, CRDS, solidarity contributions) on the net taxable profit.

LMNP with Para-Hotel Services

If you offer at least 3 of the following 4 services: breakfast, regular cleaning during the stay, linen with regular changes, and personalized check-in, your activity is reclassified as para-hotel. Consequences: VAT liability, and most importantly, mandatory social contributions.

LMNP Above €23,000 in Annual Revenue

Since 2021, LMNP landlords who exceed €23,000 in annual revenue (even without hotel-type services) are subject to URSSAF social contributions if they actively manage their short-term rental. The exact rule is complex and contested -- if in doubt, consult a chartered accountant.

LMP

Mandatory social contributions on 100% of profit. Overall rate ~35-43% depending on whether you're under the self-employed (TNS) or general scheme. Our LMP simulator provides an estimate.

The CFE: The Annual Tax Everyone Forgets

The Cotisation Foncière des Entreprises (CFE) is owed by all LMNP landlords. It replaced the old "taxe professionnelle." The amount depends on the municipality and the rental value of the property.

• Possible exemption in year 1 of activity
• Minimum contribution: between €250 and €700/year depending on the municipality (€700 in Paris, ~€250 in rural areas)
• Payment date: December 15
• Where to see it: your professional tax account on impots.gouv.fr

Our LMNP CFE calculator estimates what you'll owe.

Capital Gains on Sale: An Underestimated Issue

As long as you hold the property, depreciation causes no problem. But upon sale, the tax treatment differs depending on your status.

LMNP

Private capital gains regime. Full income tax exemption after 22 years of ownership, and full social levies exemption after 30 years. The calculation is based on the original purchase price, without deducting depreciation already taken. This is very favorable.

LMP

Professional capital gains regime. More punishing: the calculation incorporates depreciation taken (so the "accounting gain" can be substantial). Exemption possible after 5 years of activity if your revenue stays below €90,000.

Our LMNP capital gains calculator shows the tax cost of selling based on your situation.

Local Taxes: What You Need to Know

Tourist Tax (Taxe de Séjour)

Collected on each night sold and remitted to the municipality or EPCI. Airbnb and Booking collect it automatically in most municipalities -- but check: some still require you to handle it yourself.

Our tourist tax calculator shows the applicable rate by municipality and property classification.

Property Tax (Taxe Foncière)

Paid by the owner as normal. Deductible under the actual-cost regime.

Residential Tax (Taxe d'Habitation)

Abolished for primary residences since 2023. Still applies to secondary residences, including most Airbnbs. Depending on the municipality, a secondary residence surcharge may apply (up to 60% in Paris).

Tax Calendar: Key Dates to Keep

A summary to save:

• January-February: gather documents (Airbnb/Booking statements, invoices)
• May-June: file forms 2042 + 2042 C PRO (+ 2031/2033 if using actual-cost regime)
• June: URSSAF filing if you're subject to social contributions
• September: potential income tax payment
• December: CFE payment

More details in our dedicated article on the LMNP 2026 tax return calendar.

How to Optimize: 6 Key Levers

1. Switch to the actual-cost regime as soon as you have an outstanding mortgage or significant expenses. Often: your tax bill is cut in half or more.
2. Depreciate furniture purchased before renting: if you furnish the property before listing it, keep every receipt.
3. Deduct accountant fees: they're deductible, and a good accountant saves you far more than their fee.
4. Watch the LMP threshold: if you're approaching €23,000, calculate the social contribution cost before crossing over. Sometimes, slightly reducing your revenue is better than tipping into LMP.
5. Get your property classified as a tourist furnished rental: micro-BIC allowance rises to 71% (vs. 30% for unclassified), with higher caps at €77,700.
6. Run simulations before making decisions: our calculators are free and give you results in a few clicks. Use them before any major financial decision.

Common Mistakes to Avoid

• Staying in micro-BIC out of inertia when the actual-cost regime would be more advantageous
• Forgetting to get a SIRET number (makes the actual-cost regime impossible)
• Missing the CFE from year 2 onward (no exemption)
• Failing to report a switch to LMP (the tax authority can reassess 3 years back)
• Confusing revenue with profit for threshold purposes (thresholds are always based on gross revenue)
• Failing to depreciate second-hand furniture of equivalent value
• Not keeping separate accounting records for multiple properties

All Our LMNP Tools in One Place

To go further, here is the complete list of LivretAccueil calculators dedicated to LMNP taxation:

• LMNP Tax Calculator: Micro-BIC vs. Actual-Cost regime comparison
• LMNP Depreciation Calculator: annual deduction on property and furniture
• LMNP Capital Gains Calculator: tax on sale
• LMNP CFE Calculator: business property tax
• LMP Contributions Calculator: impact if you switch to professional status
• Tourist Tax Calculator: rate by municipality and classification
• Airbnb Revenue Simulator: estimate your annual net income
• Loi Le Meur: the new 2025-2026 obligations
• SIRET / SIREN: how to register your activity
• E-invoicing 2026: what changes for LMNP landlords

To Wrap Up

LMNP taxation may seem complex, but it remains very favorable compared to other forms of rental investment. The combination of depreciation and mortgage interest deductibility often allows landlords to completely offset income tax on rental revenue during the first 10-15 years of an investment. That's what makes it one of the most widely used regimes among real estate investors in France.

The rule that sums it all up: above €15,000 in annual revenue, or as soon as you have an outstanding mortgage, opt for the actual-cost regime and work with a chartered accountant. The cost (€400-800/year) is negligible compared to the tax savings.

And to manage your properties day to day, keep a clear view of each booking, and give your guests a professional welcome, create your free welcome book -- it saves you time and improves your reviews.