€23,000
Annual receipts threshold — one of two cumulative conditions for LMP status
17.2%
Social levies rate for LMNP (7.5% for EU/EEA residents); LMP pays SSI contributions instead
€90,000
Revenue threshold below which LMP may benefit from full professional capital gains exemption
€0
Additional cost of LMNP registration — same Guichet unique SIRET process as LMP

LMP vs LMNP: The Two-Condition Test

Every landlord who lets a furnished property in France is either a loueur en meublé professionnel (LMP — professional furnished landlord) or a loueur en meublé non professionnel (LMNP — non-professional). The classification has profound consequences for income tax, social charges, capital gains, IFI, and succession planning. Under Article 155 IV of the Code général des impôts (CGI), LMP status requires two cumulative conditions to be met simultaneously:

  • Condition 1: Annual meublé rental receipts exceed €23,000 (revenues bruts, all properties combined)
  • Condition 2: Those receipts exceed all other professional income in the tax household (foyer fiscal) — employment income, business income, pensions

Both conditions must be met. A landlord with €30,000 of meublé receipts but €40,000 of employment income is LMNP, not LMP. A landlord with €22,000 of meublé receipts — even if that is their only income — is LMNP. LMP is a minority status reserved for landlords for whom furnished rental genuinely constitutes their primary professional activity.

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The Majority Income Test: A Household-Level Test

The second condition compares meublé receipts against all professional income in the tax household — including the income of a spouse or PACS partner. A landlord whose spouse has a high salary may find it difficult to meet the majority income test even if meublé rental is their own primary occupation. This makes LMP status more accessible to single landlords or couples where both work primarily in meublé rental.

What LMP Status Changes: A Full Comparison

Feature LMNP LMP
Income tax categoryBIC (non-professional)BIC (professional)
Deficit offsetCarry forward on meublé income only — 10 yearsImmediate offset against all income — any year
Social chargesPrélèvements sociaux 17.2% (or 7.5% EU/EEA)SSI social contributions (maladie, retraite, allocations familiales)
Capital gains regimeImmobilier: 19% IR + social levies; taper relief after 22/30 years; amortissement reinstated from 2025Professional: full exoneration if receipts <€90,000; partial exoneration up to €126,000
IFI (wealth tax)Subject to IFI as immobilier assetProfessional asset exemption potentially available
Dutreil transmissionNot availablePotentially available for donations/successions
Registration requirementSIRET required; no greffe registrationRegistration at CFE/greffe mandatory
Accounting requirementOptional under micro-BIC; required under régime réelRégime réel mandatory — accountant required

Why Most Non-Resident Landlords Are LMNP

The vast majority of non-resident foreign landlords owning a single furnished property in France are LMNP. Their meublé receipts typically do not exceed €23,000 per year, and even where they do, their other professional income — employment income, business income, pension — almost always exceeds their meublé receipts. LMNP status is the default, not the exception.

This is not necessarily a disadvantage. LMNP under régime réel offers powerful amortissement (depreciation) benefits that can reduce taxable BIC income to near-zero for many years. The absence of SSI social contributions is a significant advantage over LMP status for most investors. And the immobilier capital gains regime, while less generous than the LMP professional exemption in some scenarios, benefits from taper relief reaching full exemption from social levies after 30 years of ownership.

LMNP advantages for non-resident investors
  • Amortissement under régime réel reduces taxable BIC income — often to zero for many years
  • Social levies at 17.2% (7.5% for EU/EEA residents) rather than full SSI social contributions
  • Immobilier capital gains taper relief: full IR exemption after 22 years; full social levies exemption after 30 years
  • No mandatory professional registration or accountant requirement under micro-BIC
  • Compatible with professional income from any other source in the foyer fiscal
LMNP limitations to be aware of
  • Losses carry forward only against future meublé BIC income — cannot offset employment or other income
  • No IFI professional asset exemption — property counted as immobilier asset in wealth tax base
  • From 2025: amortissement deducted under régime réel must be reinstated in capital gains calculation on sale
  • No access to Dutreil transmission regime for succession planning
  • Social levies apply on the full taxable income (reduced by amortissement, not by social charges)

When LMP Status Is Valuable — and Its Hidden Costs

LMP status is genuinely valuable for landlords who are genuinely professional meublé operators: those with multiple properties generating significant income from furnished rental as their primary occupation. The ability to offset operating losses against all income is powerful when the activity generates deficits, particularly in the early years of a property acquisition. The potential IFI professional exemption and Dutreil availability matter for high-net-worth landlords.

But LMP status has hidden costs. SSI social contributions are levied on a wider base than prélèvements sociaux and create genuine social security entitlements — but they can represent a higher financial burden. The professional capital gains regime's full exemption at €90,000 of receipts is valuable, but above this threshold short-term gains are taxed at progressive income tax rates plus SSI contributions. And registration as a professional meublé operator creates formal obligations that LMNP status does not.

LMP genuine advantages
  • Losses immediately offset all income in the foyer fiscal — no 10-year carry-forward restriction
  • Professional capital gains: full exemption if receipts <€90,000; partial exoneration up to €126,000 (CGI Art. 151 septies)
  • Potential IFI professional asset exemption — removes property from wealth tax base (CGI Art. 975)
  • Access to Dutreil transmission regime for donations and successions
  • Social security entitlements (maladie, retraite) generated by SSI contributions
LMP hidden costs and risks
  • SSI contributions: potentially higher cost than 17.2% prélèvements sociaux depending on income level
  • Régime réel mandatory — accountant required, higher administrative burden
  • CFE/greffe registration mandatory — formal professional status creates obligations
  • Capital gains above €126,000 threshold taxed at progressive IR rates plus SSI — less favourable than the long-term immobilier taper
  • Majority income test assessed annually — status can change year to year
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The 2025 LMNP Capital Gains Change

From 1 January 2025, LMNP landlords who sell a property they have depreciated under régime réel must reduce the acquisition price used to calculate the capital gain by the cumulative amortissement deducted during the rental period (CGI Art. 150 VC as amended). This significantly increases the taxable capital gain and partially offsets the tax efficiency of amortissement deductions. LMP professional gains are not affected by this change in the same way. If you are planning to sell a depreciated LMNP property, seek advice on the timing and structuring of the disposal before acting.

LMP vs LMNP: The Essentials
  • Two-condition test (CGI Art. 155 IV): LMP status requires (1) annual meublé receipts >€23,000, AND (2) those receipts exceed all other professional income in the tax household (foyer fiscal). Both conditions are cumulative and assessed annually. A high-earning spouse can prevent LMP status even if meublé is the landlord's only personal income.
  • LMNP default status: most non-resident foreign landlords are LMNP — their receipts typically do not exceed €23,000, or their other professional income exceeds their meublé receipts. LMNP is the default, not LMP. LMNP under régime réel offers powerful amortissement benefits, often reducing taxable BIC income to near-zero for many years.
  • LMNP key implications: losses carry forward on meublé income only (10 years); social levies at 17.2% or 7.5% (EU/EEA); immobilier capital gains regime with taper relief (full IR exemption after 22 years / full social levies exemption after 30 years); no IFI professional exemption; no Dutreil access.
  • LMP key implications: losses immediately offset all income; SSI social contributions (not prélèvements sociaux); professional capital gains regime — full exoneration if receipts <€90,000 (CGI Art. 151 septies), partial up to €126,000; potential IFI professional asset exemption (CGI Art. 975); Dutreil transmission potentially available; régime réel mandatory, accountant required.
  • 2025 LMNP capital gains reform (CGI Art. 150 VC amended): from 1 January 2025, LMNP landlords selling a depreciated property must reinstate cumulative amortissement in the capital gains calculation — significantly increasing the taxable gain. This partially offsets the benefit of amortissement deductions. Timing and structuring of any sale of a depreciated LMNP property now requires careful planning.
Need Advice on Your LMP/LMNP Status?

Our English-speaking French lawyers advise non-resident landlords on LMP vs LMNP classification, tax optimisation under régime réel, and the 2025 capital gains reform. We work with individual investors and international families with French property portfolios.

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This article is for general information and educational purposes only. It does not constitute legal advice and does not create a lawyer-client relationship. Tax rules are subject to annual change — always seek qualified French legal and tax advice before making decisions based on LMP/LMNP status.