Non-professional furnished rental (LMNP) in 2026: how it works
Income from non-professional furnished rental is taxed in the category of industrial and commercial profits (BIC). Two regimes coexist: the micro-BIC and the actual-cost simplified regime. Their eligibility conditions and deduction rules differ.
The LMNP status
The non-professional furnished rental (LMNP) status applies when the taxpayer does not meet both cumulative conditions for LMP (professional furnished rental) status:
- Annual furnished rental receipts exceeding €23,000
- These receipts exceeding the household's professional income (salaries, BIC, BNC, agricultural income, management fees under art. 62)
If either condition is not met, the taxpayer falls under LMNP status. Both conditions must be met simultaneously to switch to LMP.
Unlike bare property rental (rental income), furnished rental under BIC entitles the landlord to depreciate the property and furniture.
The micro-BIC regime
Applicable allowances in 2026
The Loi Le Meur (2024-1039 of 19.11.2024, art. 7; CGI art. 50-0) amended micro-BIC allowances for furnished rentals from 1 January 2025:
Classified tourist accommodation and bed & breakfasts:
Allowance of 50% up to €77,700 of annual rental receipts.
⚠️ The 71% allowance previously applicable to classified tourist accommodation before 2025 was reduced to 50% by the Loi Le Meur.
Non-classified tourist accommodation:
Allowance of 30% up to €15,000 of annual rental receipts.
Other furnished rentals (student residences, care homes, standard furnished rentals):
Allowance of 50% up to €77,700 of annual rental receipts.
How it works
The flat allowance is automatically applied to gross receipts. The taxpayer is taxed on the balance, without deducting actual expenses.
The actual-cost simplified regime
The actual-cost regime applies automatically above the micro-BIC thresholds, or on election below them.
It allows deduction of actual expenses effectively incurred:
- Loan interest
- Management and agency fees
- Insurance
- Condominium charges
- Property tax (taxe foncière)
- Maintenance and repair work
- Depreciation of the property and furniture
Depreciation is the main characteristic of the actual-cost regime under LMNP. A property acquired for €200,000 (excluding land) can be depreciated over 25 to 40 years, generating an annual deductible charge without cash outflow.
When deductible charges exceed receipts, a BIC deficit arises. This deficit can be carried forward against BIC profits over the following 10 years. It cannot be offset against overall income.
Social levies
BIC profits from non-professional furnished rental are subject to social levies on investment income at a rate of 18.6% (CSG 10.6% + CRDS 0.5% + solidarity levy 7.5%).
Filing and forms
- Actual-cost regime: BIC return (form 2031 and annexes), carried forward onto form 2042 C Pro
- Micro-BIC regime: direct entry on form 2042 C Pro
A technically demanding return
The LMNP return involves multiple forms whose completion rules vary depending on the regime, the category of furnished rental, and the year's result. Transfer errors between the BIC return and form 2042 C Pro are common.
Fidencia.tax guides you through your return based on your regime, your category of furnished rental, and your year's result.
File your LMNP return accurately — fidencia.tax
This article is provided for informational and educational purposes only. It does not constitute tax, legal, or financial advice. The rules presented are general in nature and may not apply to your personal situation. Consult a qualified professional (chartered accountant, tax lawyer, wealth management adviser) for any tax decision. Fidencia.tax is a filing assistance tool and does not replace professional advice.
Legal references: CGI article 50-0 (as amended by Loi Le Meur 2024-1039 of 19.11.2024, art. 7); CGI articles 151 septies, 39 C; 2026 DGFiP Income Tax Guide; CSS art. L136-6 f), L136-8 I 2°.