The status of non-professional furnished rental is based on an annual revenue threshold set at 23,000 euros. This amount determines whether a landlord falls under the LMNP regime or shifts to the status of professional furnished rental (LMP), with very different tax and social consequences. Understanding what this ceiling encompasses, how it is calculated, and what happens in case of exceeding it helps avoid costly mistakes during declaration.
Gross or net income: what the 23,000 euro threshold actually includes
A common confusion relates to the nature of the income taken into account. The 23,000 euro ceiling applies to annual gross income, meaning the rents collected including charges. Deductible charges, repairs, loan interest, or depreciation do not reduce this amount for the assessment of the threshold.
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Specifically, a landlord who receives 1,900 euros in monthly rent (charges included) reaches 22,800 euros over twelve months. They remain below the ceiling. At 2,000 euros monthly, they exceed it. The calculation is done at the level of the tax household: the income from all furnished properties owned by the household members is summed up.
Article 155, IV of the General Tax Code specifies the two cumulative conditions for losing the LMNP status. The income must exceed 23,000 euros and be higher than the other activity income of the household. If only one of these conditions is met, the landlord retains the non-professional regime. Delving into the 23,000 euro ceiling in LMNP helps to measure the impact of this dual criterion on one’s personal situation.
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Micro-BIC regime and real regime: two distinct tax ceilings from LMNP
The 23,000 euro threshold concerns the status (LMNP or LMP). It should not be confused with the ceilings that determine the applicable tax regime for industrial and commercial profits (BIC).
The micro-BIC regime automatically applies below a certain level of income. For long-term furnished rentals, this ceiling is 77,700 euros in annual turnover. Below this, the landlord benefits from a flat-rate deduction on their rental income. For unclassified tourist rentals, the law of November 19, 2024, has modified the deduction rates and thresholds applicable from the 2025 income.
Above the micro-BIC ceiling, or by voluntary option, the real regime applies. It allows for the deduction of actual charges and the depreciation of the property, furniture, and acquisition costs. This mechanism significantly reduces, or even eliminates, the taxable profit for several years. A landlord can thus remain LMNP (income below 23,000 euros) while opting for the real regime to minimize their annual taxation.
- The 23,000 euro ceiling determines the status (LMNP or LMP) and is assessed based on the gross income of the tax household.
- The micro-BIC ceiling (77,700 euros for long-term rentals) determines the tax regime and is assessed based on the turnover of the activity.
- The choice between micro-BIC and real remains open even below the 23,000 euro threshold: the two ceilings operate independently.
Reintegration of depreciation upon resale: the angle that the LMNP ceiling does not show
Staying below 23,000 euros in income and opting for the real regime with depreciation seems to be the ideal combination. However, the recent tax reform changes the long-term game.
Deducted depreciations are now reintegrated into the calculation of the capital gain upon the sale of the property. The formula becomes: taxable capital gain = sale price – (purchase price – deducted depreciations). The more a landlord has depreciated their property during ownership, the higher the taxable base will be at the time of sale.
This reintegration concerns all past depreciations, including those applied before the measure came into effect. An investor who has depreciated their property for ten years ends up with a capital gain calculated on a net book value much lower than the initial acquisition price.
The arbitration is therefore no longer solely based on annual taxation. A LMNP landlord must integrate the expected holding duration into their strategy. For a property intended to be held for a very long time, depreciation remains advantageous due to the deductions for holding duration on capital gains. For a medium-term resale, the annual tax gain can be largely offset by the exit taxation.
Social contributions in short-term rentals: an additional threshold to monitor
The 23,000 euro ceiling also comes into play regarding social contributions, but only for short-term furnished rentals (tourism, seasonal). Beyond this revenue threshold, the landlord must affiliate with a social security regime and pay contributions.
Two options exist:
- The general regime via the declaration of furnished rental income, with a contribution rate applied to the income.
- The micro-entrepreneur regime or the collaborative economy regime depending on the platforms used and the volume of activity.
- For long-term rentals (one-year lease or mobility lease), this affiliation obligation does not apply, even beyond 23,000 euros in income.
The rate of social contributions applicable to property income has also been raised to 18.6% for the 2026 income, which increases the overall tax burden even for landlords remaining below the LMNP ceiling.
Transition to LMP: concrete consequences of exceeding 23,000 euros
Exceeding the 23,000 euro threshold while receiving rental income higher than the other activity income of the household leads to an automatic shift to the LMP status. This change is not trivial.
In LMP, deficits can be offset against global income (and are not limited to non-professional BIC). Capital gains fall under the professional regime, with a possible exemption after five years of activity if the income remains below certain thresholds. Affiliation to social contributions becomes mandatory, regardless of the duration of the leases.
The transition to LMP is observed year by year. A landlord can be LMNP one year and LMP the next if their activity income decreases or if their rental income increases. This instability makes managing the 23,000 euro threshold all the more strategic for households whose professional and rental incomes are close.
The 23,000 euro ceiling in LMNP remains a central reference point, but it does not alone summarize the taxation of furnished rental. The interaction between this threshold, the chosen tax regime, the reintegration of depreciations upon resale, and social contributions requires a comprehensive reading over the entire holding period of the property.