LMNP réel: the complete guide to furnished lettings

The LMNP réel regime is the one in which a non-professional furnished landlord (loueur en meublé non professionnel) deducts actual expenses and the depreciation of the property and furniture from rent, instead of the flat micro-BIC allowance. Depreciation can never create a loss: used each year to bring the result down to zero, it often wipes out the tax on the rent for many years. In return, you file a form 2031 with its 2033 schedules every year, and since 15 February 2025 the depreciation deducted is clawed back in the capital gain when you sell.

The rules below are those in force on 9 November 2026. Amounts are those for 2026 income, declared in 2027, unless stated otherwise. If you are not tax resident in France, the rules specific to non-residents are outside the scope of this guide.

This guide covers the whole regime. Each step has its own detailed guide, linked in the section about it.

Are you an LMNP?#

You are a furnished landlord when you let a home equipped with the furniture needed to live in it. The rent is then taxed as business income (bénéfices industriels et commerciaux, BIC), not as the property income of unfurnished lettings (impots.gouv.fr).

You are non-professional (LMNP) unless both of the following conditions are met (article 155 of the French tax code, CGI):

• your tax household's furnished-letting receipts exceed €23,000 for the year;
• those receipts exceed the household's other earned income (salaries, other business income, farm and professional income).

If both are met, you are a professional furnished landlord (LMP), with different rules for deficits, social contributions and capital gains. This guide covers LMNP only.

Micro-BIC or réel#

Unless you act, you are under micro-BIC: you declare your receipts and a flat allowance covers all expenses (article 50-0 of the CGI). For 2026 income:

Type of letting	Receipts ceiling	Allowance
Standard furnished letting (long term)	€83,600	50%
Classified tourist let, bed and breakfast	€83,600	50%
Unclassified tourist let	€15,000	30%

The allowance is never less than €305. A year's regime depends on the receipts of the two previous years: you leave micro-BIC only after two consecutive years above the ceiling (service-public.gouv.fr).

Below the ceiling, the réel regime is an option: it lasts one year and renews tacitly, with no three-year commitment as for unfurnished lettings. The full comparison, and how to opt, is in our guide LMNP micro-BIC or réel.

What you deduct under the réel regime#

Under réel, your result is receipts, minus expenses, minus depreciation.

Expenses of the year: loan interest and loan insurance, property tax, non-recovered service charges, landlord insurance, management fees, small repairs and upkeep, CFE, accounting fees.

Depreciation spreads the cost of the property and furniture over their useful life (article 39 C of the CGI):

• land is not depreciated: its share of the price must be taken out;
• the building is depreciated by components (structure, roof, fittings, interior), each over its own life;
• furniture is depreciated over its own life, often five to ten years.

The rule that makes the regime worthwhile: depreciation cannot create or increase a loss. At most it brings the result down to zero, and what could not be deducted is carried forward with no time limit. The step-by-step calculation is in our guide LMNP depreciation: a worked example.

LMNP deficits#

When your expenses, excluding depreciation, exceed your receipts, you have a deficit. It can only be offset against your non-professional furnished-letting income of the next ten years, never against your salary (article 156, I, 1° ter of the CGI). It is declared in box 5NY of form 2042-C-PRO, and deficits of past years in boxes 5GA to 5GJ.

Two carry-forwards therefore coexist: the deficit, limited to ten years, and deferred depreciation, with no limit. The first is used before the second, so a deficit about to expire is not lost.

Worked example#

A furnished studio let year-round for €800 a month including charges, so €9,600 of receipts in 2026. Bought for €180,000 including costs, 15% of it land, furnished for €7,000. Expenses for the year, interest included: €3,200.

Item	Micro-BIC	Réel
Receipts	€9,600	€9,600
Allowance or expenses	50% = €4,800	€3,200
Depreciation deducted	—	€6,100
Taxable result	€4,800	€300

The example uses straight-line depreciation: €153,000 of building over 30 years, so €5,100, and €7,000 of furniture over 7 years, so €1,000. A breakdown by components, which the tax office expects, gives a slightly different amount: see the depreciation guide.

These figures are taxable results. The tax itself depends on your tax rate and social charges. To run the numbers with your own figures, use our free LMNP micro-BIC or réel calculator.

Your obligations under the réel regime#

1. Register: when you first let furnished, you declare the start of the activity on the single business formalities portal (guichet unique) within fifteen days. You receive a SIRET number, which goes on your returns (impots.gouv.fr).
2. Keep accounts: receipts, expenses, a fixed-asset register and a depreciation schedule.
3. File the return: the 2031 profit return and its schedules 2033-A to 2033-G, electronically, with the business tax office (SIE) for the property's location. For 2025 income, the deadline was 5 May 2026, extended to 20 May for online filing. The schedule-by-schedule detail is in our guide LMNP forms 2031 and 2033 yourself.
4. Carry the result to your income tax return, form 2042-C-PRO: box 5NA for a profit, 5NY for a deficit. See our guide Declaring LMNP income: form 2042-C-PRO.
5. Pay the CFE, the local business tax, unless exempt (see below).

Do you need an accountant for all this? It is not compulsory. What you can do yourself, and when a professional is worth it: see our guide LMNP without an accountant.

The CFE#

Furnished letting is subject to the cotisation foncière des entreprises (CFE), a local business tax. You are exempt when your receipts for the reference year do not exceed €5,000 (article 1647 D of the CGI). Other exemptions exist, for instance for occasionally letting part of your own home; some depend on the municipality (impots.gouv.fr). The CFE paid is a deductible expense under réel.

When you sell: the capital gain#

As an LMNP, the capital gain on selling the property follows the rules for private individuals: 19% tax, social charges, and allowances for the holding period. But for sales made since 15 February 2025, the depreciation deducted reduces the purchase price used in the calculation, which increases the gain (article 150 VB, III of the CGI). Student residences, senior residences and care homes are excluded.

The detailed calculation, with an example, is in our guide LMNP capital gains and depreciation clawback.

Sources#

• Furnished letting (location meublée), impots.gouv.fr
• Furnished letting: tax regime, service-public.gouv.fr
• Article 50-0 of the French tax code (micro-BIC), Légifrance
• Article 39 C of the French tax code (depreciation of let assets), Légifrance
• Article 155 of the French tax code (professional landlord), Légifrance
• Article 156 of the French tax code (deficits), Légifrance
• Article 150 VB of the French tax code (purchase price), Légifrance
• Article 1647 D of the French tax code (CFE), Légifrance

Last checked on 9 November 2026