Tips and tools

Furnished rentals

The furnished rental enjoys special tax arrangements,
quite favorable compared to the bare rental.

LMNP: General principle

Where an investor puts rented a furnished apartment, it becomes owner in furniture. The lessor in Cabinet is unprofessional if he is not registered at the RCS in the title of this activity and retire an amount less than or equal to € 23,000 annual and less than 50% of its total income.

Tax advantage

A furnished rental revenues are taxed in the category of benefits industrial and commercial (BIC) the expenses caused by this activity may be deductible against income of the same kind. Deductible expenses are: management fees, rental costs and loads of property (amortization, interest loan, various repairs, property tax...). Once repaid loans interests and fully deducted depreciation, it may be worthwhile to opt for the scheme of the MICRO-BIC that allows to have a global reduction of 50% on rental income provided that they do not exceed € 32 000 per year. Deficits may be charged on the income of the same kind within a limit of 10 years.

Local direct taxes

  • Housing tax: the housing tax is payable by any person who, in any capacity whatsoever to the enjoyment of furnished premises for habitation. Therefore, a person who gives rental, a part of the year, furnished accommodation, and which, apart from this period, is in reserve the enjoyment, is taxable to the housing tax.
  • Added value: for landlords in non-professional furniture, it is the private gain that applies
  • ISF: in the case of the non-professional furnished rental tenancies rented self-catering are considered as professional property. Accordingly, they are not exempt from wealth tax.

The LMNP status at a glance

  • Regime micro-bicPossible
  • DepreciationYes
  • Borrowings interestsDeductible
  • Deductible workNo limit