LMNP Taxation 2025: New Rules, URSSAF Thresholds & Rental Tips

Furnished Non-Professional Property (LMNP) remains attractive, provided you understand the new rules. Here's an overview to help you make the right choices.

📌 What is LMNP?

LMNP status is for individuals who rent out one or more furnished properties (equipped with all the necessary furnishings) and whose rental income does not exceed €23,000 a year or 50% of their overall income.

⚠️ Attention: If your annual rental income exceeds €23,000, you will be liable for social security contributions to the URSSAF.

💼 Two possible tax regimes (after the reform)

1. The micro-BIC regime

As of January 1, 2025, the Le Meur Law has revised the thresholds and allowances of this simplified regime:

Unclassified furnished rentals:

• Flat-rate allowance: 30%

• Income ceiling: €15,000 per year
  

Classified furnished tourist rentals / guesthouses:

• Flat-rate allowance: 50%

• Income ceiling: €77,700 per year

⚠️ If your income exceeds these ceilings, you are required to switch to the actual tax regime (régime réel).

2. The simplified actual regime (régime réel simplifié)

• Allows you to deduct all actual expenses: management fees, cleaning, loan interest, insurance, depreciation, etc.

• Often more advantageous if your annual expenses exceed a few thousand euros.

• Requires rigorous bookkeeping, usually handled by a chartered accountant.
  

📝 Your obligations under LMNP (non-professional furnished rental)

• Declare your activity online (via INPI – P0i form)

• Keep accounting records if you opt for the actual regime

• Report rental income under the BIC category, not as property income (revenus fonciers)
  

🧮 Practical example

You rent out a furnished property in Vias and earn €18,000 per year:

If the rental is unclassified:

• The micro-BIC regime no longer applies (threshold exceeded), so you must switch to the actual regime.

If the rental is classified as a “furnished tourist accommodation”:

• You benefit from a 50% allowance, meaning you're taxed on only €9,000.

• With high expenses or depreciation, the actual regime might allow you to pay no tax at all on your rental income.
  

🤝 RIBOLEYS is here to help

At RIBOLEYS, we:

• Help you choose the right tax regime

• Support you with all LMNP procedures
  

📣 Tax rules are evolving — your strategy should too.A smart tax plan means more rental income in your pocket.