How to acquire LMNP status and benefit from very advantageous taxation to optimize your investment?

You have recently purchased a Cottage on an estate Nature & Résidence Village and you want to rent it out to obtain regular rents?

What is an LMNP purchase?

LMNP stands for “Non-Professional Furnished Rental Company”.The purchase in LMNP is a French tax system which allows an individual to carry out a investment in furnished rental property (old apartments or new apartments), while benefiting from tax advantages.

Discover the obligations and benefits of LMNP status:

You wish rent out a property in LMNP ? Before you start, familiarize yourself with the obligations and benefits of this status:

  • Nature of the property : to have the LMNP status, the property must be equipped with furniture in order to be habitable immediately. It is therefore a furnished rental. This property can be an apartment in town, a house, a student residence, a tourism residence, a residence for seniors or a business residence. Whether it is a studio, an apartment or a residence, this accommodation must meet specific criteria.
  • Status : For benefit from LMNP status, rental income, that is to say rents, must not exceed certain ceilings, and the rental activity must not constitute the main activity of the owner.
  • Tax system : the LMNP offers the possibility of choosing between micro-BIC diet (Industrial and Commercial Profits) or the real regime. The micro-BIC scheme offers a flat rate reduction of 50% for fees and charges. In the real system, the lessor deducts the real charges (loan interest, work, taxes, management fees, etc.) as well as the depreciation of the property and the furniture, which can generate a deficit attributable to the rental income.
  • Benefits : one of the main advantages ofThe purchase in LMNP is the possibility of generating rental income with little or no tax for several years, thanks to deductions and depreciation. If you have completed your rental investment LMNP in new, then you can even recover the VAT. It is also a way ofinvest in real estate while diversifying its assets. Work carried out in the accommodation is also deductible, thus allowing a tax optimization.

Before committing to a purchase LMNP, it is recommended to consult an accountant or wealth management advisor to fully understand the tax and financial implications and optimize the investment.

The characteristics of the status of Non-Professional Furnished Lessor

Came into force in 1949, the statute LMNP is aimed at individuals owners of furnished residential premises, whether it is an old or new apartment, wishing to rent it. All French taxpayers can make a rental investment LMNP, and in particular those who wish to prepare for their retirement.

French law regulates this property investment ; to be considered a furnished rental and therefore claim to LMNP status, the accommodation must contain a minimum of furniture and equipment.
In this way, tenants will be able to meet their daily needs: sleeping, eating and washing.

Furthermore, the “Unprofessional” character of the rental of the property will only be effective on condition of satisfying the terms and conditions following:

  • The amount of rental income must not exceed €23,000 per year;
  • The total sum of rental income must not exceed the amount of other income of the tax household.

The advantages of LMNP status on your rental activity

If at least one of two conditions mentioned above are respected, you can carry out your activity as a Non-Professional Furnished Rental Company (LMNP). You will then opt for one of these two tax regimes :

First of all, the Micro BIC diet : You can reduce your tax base by half, thanks to a flat rate reduction of 50% accordé par l’Administration Fiscale. En contrepartie, vous ne pourrez déduire aucune autre charge de vos revenus locatifs. Vous serez imposé sur les 50% restants (impôt sur le revenu + prélèvements sociaux).

Afterwards, the Real Simplified diet : You have the possibility of accounting for all of your expenses linked to your Cottage rental (equipment, insurance, loan interest, depreciation of the Cottage, etc.). Then, you can subtract them entirely from your rental income.
This status will allow VAT to be recovered on the purchase of your Cottage. It can also be recovered from the price of the equipment acquired.

Note that in 90% of cases, the Real Simplified regime appears as the solution best suited to your LMNP status. However, each year, you must complete a certain number of formalities with the Tax Administration. To facilitate your procedures, recourse to the support of a LMNP status specialist is highly recommended.

Price and profitability: what to expect from this type of investment

Theinvestment in LMNP (Non-Professional Furnished Rental) has become popular in France due to its fiscal advantages and the possibility of generating additional income. However, as with any real estate investment, whether for studios, old or new apartments, prices and profitability depend on many factors.

Price :

  • Location : as always in real estate, location is essential. A property located in a large city or tourist area will tend to cost more than a property in a rural area or a small town.
  • Type of property : residences with services (students, seniors, EHPAD, tourist) may have prices per m² different from traditional properties. In addition, prices vary depending on the quality and standing of the residence.
  • Estate market : the price also depends on the situation of the real estate market at the time of purchase.


  • Occupancy rate : to maximize the profitability of the investment, it is crucial to ensure a good occupancy rate. It’s easier in areas with high rental demand.
  • Charges : the charges, taxes and management fees directly impact profitability. In the case of serviced residences, part of the costs are often covered by the operator.
  • Taxation : one of the main attractions of the LMNP is its advantageous tax regime. Depending on the regime chosen (micro-BIC or real regime), taxes can be significantly reduced or even canceled for several years thanks to depreciation.
  • Management : management can be delegated to a professional manager, especially in the case of serviced residences. This ensures optimal delivery and maintenance of the apartment. This has a cost, but it can also guarantee a certain occupancy rate and a regular income.

In general, gross profitability (before taxes and charges) can be expected for a LMNP investment between 3% and 6%, but this varies widely depending on the criteria mentioned above. It is always recommended to carry out an in-depth study and seek professional support before making the investment. Net profitability (after taxes and charges) can be optimized thanks to LMNP tax advantages.

It is essential not to focus only on the announced profitability and to analyze in depth all aspects of the investment: quality of the property, seriousness of the operator (in the case of residences with services), resale potential, etc.

Peacefully entrust the LMNP management of your Cottage to Serenity experts

In order to control the taxation of your Cottage as accurately as possible, you can call on our partner Serenity (Mobil Home Serenity Group), pioneer and expert in LMNP status in the Outdoor Hotel Industry, which is now open to Residential Leisure Parks by partnering with the Nature & Résidence Group. You will benefit from complete support and tailor-made services to carry out all the procedures relating to this tax status and the management of your property.

Serenity provides you with the resources and expertise you need to make your business as profitable as possible. LMNP investment. This specialized company follows you from the creation of your LMNP status to the administrative management of your rental activity.

For more information, contact their team by email via their Contact form or by telephone at (free, no-obligation call).