LMNP 2026: micro-BIC, actual regime and capital gains

LMNP or LMP: the €23,000 test

Service-public.gouv.fr points out that you are a non-professional landlord if at least one of the following two conditions is met:

• the annual furnished letting receipts of the whole tax household are below €23,000;
• those receipts are below the household’s total other earned income (salaries, other BIC commercial income, etc.).

The distinction has three practical consequences:

• Losses: as an LMNP, a loss can only be set against non-professional furnished letting income, for the same year and the following 10 years. As an LMP (loueur en meublé professionnel, professional furnished landlord), it is set against total income, and any excess is carried forward over 6 years.
• Capital gains: only the non-professional landlord falls under the private individuals’ property capital gains regime, with the allowance for length of ownership.
• Social contributions: for the Urssaf (the social contributions collection agency), up to €23,000 of annual receipts the activity counts as managing private assets and only prélèvements sociaux (social levies) are due, at a rate of 18.6% (CSG 10.6%) for non-professional furnished lettings, compared with 17.2% for property income and property capital gains (service-public.gouv.fr, F2329).

Any furnished letting activity must be declared on the guichet des formalités des entreprises (business formalities portal) within 15 days of the first day of letting; the process is free and provides a SIRET number.

Micro-BIC thresholds and allowances in 2025 and 2026

Article 50-0 of the CGI, in force since 1 July 2026, now sets the threshold for “other businesses” (2°), which covers long-term furnished letting, at €83,600, and that for unclassified tourist accommodation (1° bis) at €15,000. The €15,000 threshold is not indexed; the others are updated every three years.

The allowance cannot be less than €305 (art. 50-0); in practice, receipts below €305 leave no taxable profit. Under micro-BIC, no expenses are deductible: the allowance is deemed to cover everything.

If your receipts exceed the threshold in the 1st or 2nd year, you keep micro-BIC for one more year (service-public.gouv.fr).

The actual regime: expenses and depreciation

Under the actual regime (simplified or normal), you deduct the expenses actually incurred for the letting, with supporting documents, including the depreciation of the purchase price of the property and the furniture. The result is declared on form 2031-SD and carried over to the 2042 C-PRO return.

The actual regime applies automatically above the thresholds. Below them, it is optional: the election is made before the filing deadline for the previous year’s return, lasts one year and renews tacitly (CGI, art. 50-0, 4). For 2026 income, the election therefore had to be made in spring 2026, when filing the 2025 income return.

Resale: depreciation added back into the capital gain

This is the major change brought by Law no. 2025-127 of 14 February 2025 (2025 Finance Act, art. 84). Section III of article 150 VB of the CGI now provides that “the purchase price is reduced by the amount of depreciation allowed as a deduction” under, in particular, article 39 C, in other words the depreciation claimed on furnished lettings under the actual regime.

Key points from the text:

• Scope: the text targets depreciation “allowed as a deduction”. A landlord under micro-BIC, who deducts no depreciation, is not affected.
• Works exception: depreciation corresponding to works expenditure already taken into account under 4° of II of article 150 VB is not included.
• Exclusions: the rule does not apply to properties located in student residences or residences for young people in training, residences for elderly or disabled people and long-term care establishments referred to in the same section III.
• Date: it applies to disposals made from the day after the promulgation of the law of 14 February 2025; service-public.gouv.fr refers to sales made since 15 February 2025.

The capital gain, increased in this way, is still taxed under the private individuals’ regime: 19% income tax and 17.2% social levies, after allowances for length of ownership, with full exemption from income tax after 22 years and from social levies after 30 years (service-public.gouv.fr). Acquisition costs can be taken at their actual amount or as a flat 7.5% of the purchase price (art. 150 VB, II, 3°).

Which professional to consult

To measure the effect of a resale on the capital gain, and in particular the weight of the depreciation added back, the notaire calculates and declares the capital gain when the deed of sale is signed. If you are buying to let furnished, a courtier en crédit (mortgage broker) can cost the financing, and an agent immobilier (estate agent) can tell you about the local rental market. The choice between micro-BIC and the actual regime is a matter for a chartered accountant or the service des impôts des entreprises (business tax office).