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Start the trainingLMNP and property management: understanding your owners' tax situation (2026 guide)
LMNP (Loueur Meuble Non Professionnel, France's non-professional furnished-rental tax status) is the tax framework most owners use when they hand their property over to a short-term rental management company. As a manager, understanding LMNP taxation is essential: it lets you advise your clients, improve their bottom line and position yourself as a trusted partner rather than a simple cleaning provider.
This guide covers every tax aspect of LMNP in 2026: taxation regimes, VAT, depreciation, social contributions, the impact of the Le Meur law and working with a chartered accountant. Every section includes worked figures to help your owners make the right decisions.
What is LMNP and how does it apply to property management companies?
LMNP is a tax status that lets an owner rent out a furnished property (equipped for daily living: bed, kitchen, crockery) while enjoying favourable taxation. Unlike LMP (Loueur Meuble Professionnel, the professional furnished-rental status), LMNP has no minimum income requirement and is the default regime for most short-term rental owners.
For a short-term rental management company, LMNP is central because nearly all of your owner clients fall under it. Your role is not to give them tax advice (that is the accountant's job), but to understand the mechanics so you can steer your conversations, optimise the rental management and justify your fees through the added value you bring to their tax return.
The 3 LMNP conditions
1. Furnished property
The property must include the furniture and equipment listed in the decree of 31 July 2015 (bedding, hobs, refrigerator, crockery, etc.).
2. Income < 23,000 euros
Annual rental income (recettes) must stay below 23,000 euros OR represent less than 50% of the tax household's overall income. Beyond that, the switch to LMP is automatic.
3. No RCS registration
The owner must not be registered with the Trade and Companies Register (RCS) as a professional landlord (a condition removed in 2020 but still mentioned out of habit).
LMNP vs LMP: thresholds, conditions and consequences
The distinction between LMNP and LMP is not a choice: it applies automatically based on the owner's rental income. Crossing into LMP triggers major tax and social-security consequences that you need to anticipate with your owners.
| Criterion | LMNP | LMP |
|---|---|---|
| Rental income | < 23,000 euros/yr OR < 50% of income | ≥ 23,000 euros/yr AND > 50% of income |
| Social contributions | Social levies 18.6% (CSG/CRDS) | SSI contributions (around 40% of profit) |
| Losses | Offsettable against furnished BIC income only | Offsettable against overall income |
| Capital gains | Private capital-gains regime (exemption after 22 yrs for income tax / 30 yrs for social levies) | Professional capital-gains regime (possible exemption after 5 yrs under conditions) |
| IFI | Assets included in the IFI (property wealth tax) base | Assets excluded from the IFI (business asset) |
| CFE | Yes | Yes |
| Accounting | Simplified (micro) or reel | Reel mandatory |
Watch out: an owner with several properties managed by your company can quickly exceed the 23,000-euro threshold. Alert them as soon as their rental income approaches that figure so they can anticipate the switch to LMP with their accountant.
Micro-BIC: the 50% allowance and its limits
The micro-BIC regime is the default tax regime for LMNP owners whose rental income (recettes) does not exceed 77,700 euros per year. The tax authorities apply a flat 50% allowance (abattement) to turnover: only the remaining 50% is subject to income tax.
It is the simplest regime: no elaborate bookkeeping, no balance sheet, a simple income log is enough. But that simplicity has a cost: no actual expense is deductible. The 50% allowance is meant to cover all costs (management commission, cleaning, linen, insurance, depreciation).
When micro-BIC is enough
- Property already depreciated (no ongoing loan)
- Few actual expenses (< 50% of turnover)
- Modest rental income (< 30,000 euros/yr)
- Owner wanting simple management
- A single furnished rental property
When you should switch to reel
- Actual expenses > 50% of turnover (common)
- Recently acquired property (depreciation possible)
- Property loan (deductible interest)
- High management commission + cleaning + linen
- Major renovation works
Worked example: micro-BIC vs reel
Micro-BIC
- Rental income: 25,000 euros
- 50% allowance: -12,500 euros
- Taxable base: 12,500 euros
- Income tax (30% marginal rate): 3,750 euros
- Social levies 18.6%: 2,325 euros
- Total tax: 6,075 euros
Reel
- Rental income: 25,000 euros
- Actual expenses: -8,000 euros
- Depreciation: -10,000 euros
- Taxable base: 7,000 euros
- Income tax (30% marginal rate): 2,100 euros
- Total tax: 3,304 euros
Saving under reel: 2,596 euros/yr. That is more than the cost of an accountant (600 to 1,200 euros/yr).
Reel regime: deductible expenses (exhaustive list)
The reel (actual-expenses) regime lets owners deduct every cost incurred in running the furnished rental. Here is the exhaustive list of deductible expenses your owner clients can optimise.
Operating expenses
- Management commission (15 to 25%)
- Cleaning and laundry costs
- Consumables (welcome amenities, coffee)
- Platform fees (Airbnb, Booking)
- Management software (PMS, channel manager)
- Landlord (PNO) and liability insurance
- Property tax
- CFE (business property tax)
Financial expenses
- Property loan interest
- Bank arrangement fees
- Borrower's insurance
- Guarantee fees (mortgage, surety)
Co-ownership expenses
- Current co-ownership charges
- Managing-agent fees
- Maintenance works voted at the general meeting
Miscellaneous costs
- Accountant's fees
- CGA membership fees
- Travel costs (property management)
- Internet and electricity subscriptions
- Small supplies and repairs
CGA: the little-known tax credit
Joining an approved management centre (CGA, Centre de Gestion Agree) is often wrongly overlooked by LMNP owners. On top of avoiding the 1.25 uplift applied to non-members' profits, the CGA grants a tax credit equal to two-thirds of accounting and membership fees, capped at 915 euros per year.
Calculating the CGA benefit
- CGA membership: around 150 euros/yr
- Accountant's fees: 800 euros/yr
- Total costs: 950 euros
- Tax credit: 2/3 x 915 = 610 euros
- Real net cost: 950 - 610 = 340 euros/yr
In practice, reel accounting with a CGA costs the owner only 340 euros/yr net, while it can save them several thousand euros in taxes.
VAT: base exemption, 10% and 20%
VAT on furnished rentals is a complex topic because the applicable rate depends on the type of service provided. As a short-term rental management company, you need to distinguish three situations for your owner clients.
Base exemption (no VAT)
Most LMNP owners qualify for the VAT base exemption: they do not charge VAT and do not reclaim it. Condition: turnover below 85,000 euros (2026 threshold). This is the case for the vast majority of individual owners who rent on Airbnb or Booking without para-hotel services.
VAT at 10% (para-hotel services)
If the owner provides at least 3 of the 4 para-hotel services (breakfast, regular cleaning, linen provision, personalised welcome), the rental is subject to VAT at the reduced 10% rate. The upside: they can deduct VAT on their purchases (works, furniture, management services). The downside: heavier reporting obligations.
VAT at 20% (service provision)
Property management services (your activity) are subject to VAT at the standard 20% rate once you exceed the base-exemption threshold (36,800 euros for services). This means your commission invoices will include 20% VAT, reclaimable by VAT-registered owners.
Impact of the 2024 Le Meur law on LMNP
The Le Meur law, passed in November 2024, significantly changed the taxation of short-term furnished rentals. These changes directly affect your owner clients and, by extension, your rental management business.
Reduction of the micro-BIC allowance
For unclassified furnished tourist rentals, the micro-BIC allowance drops from 50% to 30%, with the income ceiling lowered to 15,000 euros. Classified furnished tourist rentals keep a 50% allowance (77,700-euro ceiling). This is a strong incentive to obtain furnished-tourism classification.
Reintegration of depreciation into the capital gain
Depreciation deducted under reel is now reintegrated into the capital-gains calculation when the property is resold. This reduces the long-term advantage of the reel regime but does not remove it: the annual cash-flow benefit remains significant.
Mandatory energy performance certificate (DPE)
Furnished tourist rentals will have to meet a minimum energy rating (class E from 2025, D from 2028). Energy-inefficient properties (F and G) will gradually be excluded from tourist rental. A subject to anticipate with your owners.
Management tip: help your owners obtain furnished-tourism classification so they keep the 50% micro-BIC allowance. Classification is free and valid for 5 years. Offer it as a value-added service.
Depreciation: principle, calculation and examples
Depreciation (amortissement) is the mechanism that makes the reel regime so advantageous for LMNP owners. It lets you deduct a fraction of the property and furniture acquisition price each year, with no cash outflow. It is an accounting charge, not a disbursement.
| Component | Depreciation period | Share of price | Example (200,000-euro property) |
|---|---|---|---|
| Structural work | 50 yrs | 40 % | 80,000 euros → 1,600 euros/yr |
| Roof | 25 yrs | 10 % | 20,000 euros → 800 euros/yr |
| Electrical installations | 25 yrs | 5 % | 10,000 euros → 400 euros/yr |
| Waterproofing | 15 yrs | 10 % | 20,000 euros → 1,333 euros/yr |
| Interior fit-out | 15 yrs | 20 % | 40,000 euros → 2,667 euros/yr |
| Furniture | 7 to 10 yrs | 15 % | 30,000 euros → 3,000 to 4,286 euros/yr |
| Total annual depreciation | 9,800 to 11,086 euros/yr | ||
Golden rule: depreciation cannot create a loss. If depreciation exceeds pre-depreciation profit, the surplus carries forward to later years with no time limit. This guarantees minimal tax (often close to zero) for many years.
Social contributions by status
Social contributions vary enormously depending on the owner's status and the type of activity. Here is a comparison to help your clients anticipate this often-underestimated cost.
| Status | Calculation base | Rate | Example (15,000-euro profit) |
|---|---|---|---|
| LMNP (non para-hotel) | Rental income | 18.6% (social levies) | 2,790 euros |
| LMNP para-hotel | Profit | ~40% (SSI) | 6,000 euros |
| LMP | Profit | ~40% (SSI) | 6,000 euros |
| SCI under corporate tax | Profit | 15% then 25% (corporate tax) | 2,250 euros (corporate tax only) |
Warning: since 2021, LMNP owners who receive more than 23,000 euros in annual rental income and provide para-hotel services are affiliated to the SSI (self-employed social security). Contributions then jump from 18.6% to around 40% of profit, a doubling that can catch owners off guard.
Working with a specialised accountant
For an owner on the reel regime, the accountant is not a luxury but a profitable investment. Their cost (600 to 1,200 euros per year) is more than offset by the tax optimisation they deliver (CGA credit included). As a short-term rental management company, recommending an LMNP-specialised accountant is a high-value service for your clients.
What they do
- Bookkeeping and annual balance sheet
- Tax filing (form 2031 and appendices)
- Calculating and tracking depreciation
- VAT returns (if applicable)
- Advice on the optimal tax regime
- CGA membership and tax credit
How to choose one
- Specialised in LMNP / furnished rentals
- Familiar with para-hotel services and VAT
- Able to manage several properties
- Transparent pricing (annual flat fee)
- Online tools for uploading documents
- Recommendations: Decla.fr, Jedeclaremonmeuble.com, Ownily
Frequently asked questions
No. The LMNP status applies to owners who rent out a furnished property, not to service providers. As a manager, you carry out a service-provision activity (BIC or BNC depending on your status). You can, however, be an LMNP for your own properties if you own any.
Understanding LMNP lets you advise your owners better, justify your fees (the commission is deductible under the reel regime) and position yourself as a strategic partner. It is also a sales argument: "My commission is deductible from your taxes."
In most cases the reel regime is more advantageous once actual expenses (management commission + cleaning + insurance + depreciation) exceed 50% of turnover. For a recently bought property with a loan, reel almost always wins. Point your owners to a specialised accountant for a precise calculation.
No, it reduces it for unclassified furnished rentals (micro-BIC allowance drops from 50% to 30%). The reel regime remains very advantageous. The reintegration of depreciation into the capital gain only affects the resale, not day-to-day taxation. LMNP is still the best regime for short-term furnished rentals.
No. Under LMNP, depreciation cannot create a tax loss. If depreciation exceeds pre-depreciation profit, the surplus is set aside and carried forward with no time limit. The loss (excluding depreciation) can be carried forward against furnished BIC income for 10 years.
Expect between 600 and 1,200 euros per year for a specialised online LMNP accountant. Solutions like Decla.fr or Jedeclaremonmeuble.com offer packages from 396 euros/yr for a single property. With the CGA tax credit (610 euros), the net cost can drop below 200 euros/yr.
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