“I earn over €23,000, so I must be a professional landlord” — it’s the most common misconception among furnished-rental owners in France, and it’s wrong. Moving from LMNP (non-professional furnished letting) to LMP (professional furnished letting) status depends on two conditions that must both be met, not one, and it isn’t something you opt into. This guide explains how the status is actually determined, what it changes in practice, and why it isn’t simply better or worse.
This status is separate from para-hôtellerie, a VAT regime we cover in our complete guide to para-hôtellerie — the two can apply together or independently.
Table of Contents
At a Glance, in Order of Importance
- Both conditions (€23,000 AND majority of household income) must be met together, not just one
- The threshold is based on gross annual receipts, not net profit
- Moving to LMP triggers social security contributions, not just more tax
- The micro-BIC reporting ceiling (€77,700 or €15,000) is a separate mechanism from the LMP threshold
- Your status is reassessed every year, in either direction
- The better status depends on your plans (resale, renovation, retirement), not a universal rule
1. LMNP or LMP: Two Conditions That Must Both Apply
Non-professional furnished letting (LMNP) is the default status: most owners stay on it for as long as they rent. Moving to professional status (LMP) isn’t a choice you make — it follows automatically from your income, provided both of the following are true at the same time.
Worth remembering: if just one of the two conditions isn’t met, you stay LMNP — even with receipts well above €23,000.
- Your furnished-rental receipts for the year exceed €23,000 (gross, charges included)
- Those same receipts exceed the total of your household’s other professional income (salary, business profits, etc.)
2. Micro-BIC vs Actual-Expense Regime: Don’t Confuse the Thresholds
Separately from LMNP/LMP status, a second mechanism determines how you report your income: the micro-BIC ceiling. It’s distinct from the €23,000 threshold and depends on your property’s classification: €77,700 in receipts for a classified tourist rental (50% flat allowance), versus €15,000 for a non-classified one (30% allowance). Your property’s classification — covered in our guide to furnished tourist accommodation classification — has a direct tax impact.
Beyond these ceilings, the actual-expense regime becomes mandatory: you deduct real costs and depreciate the property, which requires more rigorous bookkeeping but can significantly reduce your taxable base.
Worth remembering: you can be LMNP on the actual-expense regime (because you’ve exceeded the micro-BIC ceiling) without ever becoming LMP. These are two independent mechanisms, often confused.
3. Social Contributions: the Real Cost of Moving to LMP
This is the most concrete change: under LMNP, your rental income carries standard social levies (17.2%). Under LMP, your profit becomes subject to social security contributions through URSSAF, calculated on a base and at a rate noticeably higher than simple LMNP taxation — which is what makes the status less attractive to many owners, even when they end up there involuntarily.
Moving to LMP also requires business registration and commercial-type bookkeeping, heavier than the simple asset-management approach of an LMNP property.
4. How Your Status Gets Checked Every Year
There’s generally no voluntary step to “become” LMP: the status follows automatically from your declared income, reassessed every calendar year. In practice, here’s how it’s determined:
- Add up all your furnished-rental receipts for the calendar year
- Compare that total to your household’s other professional income
- If both thresholds are exceeded, business registration is required
- If your receipts drop back below the threshold the following year, you revert to LMNP automatically
5. Deductible Losses and Wealth Tax: LMP’s Overlooked Advantages
LMP isn’t all downside. If you’re taking on major renovation work, an LMP loss is deductible without limit against your overall household income — unlike LMNP, where losses can only offset income of the same type, carried forward. That’s a real advantage for an owner renovating heavily at the start of operation.
A property let under LMP may also, under conditions, be exempt from French wealth tax (IFI) if it qualifies as a professional asset — a point always worth validating with an accountant based on your overall financial situation.
6. Why This Isn’t a Decision to Make Alone
The better status depends entirely on your situation: do you have significant other professional income? Are you planning major renovation work? Do you intend to sell the property in the medium term (LMP capital gains follow different, business-asset rules from a private individual’s capital gains)? These factors rarely line up in an obvious way, which is why it’s worth having an accountant confirm your situation before any change of regime.
On the operational side, your chosen tax status changes nothing about how your property is actually run — cleaning, guest welcome, and maintenance stay the same whether you’re LMNP or LMP. That’s what Care Concierge handles day to day across the valley.
FAQ – LMP or LMNP Status
No. The status isn’t a voluntary choice — it follows automatically once both thresholds (receipts and share of household income) are crossed together. You can’t opt into LMP ahead of time.
No, it depends entirely on your situation. LMP allows losses to offset overall household income and can offer a wealth-tax exemption, but it exposes you to social contributions that are often heavier than LMNP taxation. It only pays off for certain profiles, particularly during major renovation work.
Yes, business registration is required once both LMP conditions are met, along with the commercial bookkeeping obligations that come with it.
These are two separate mechanisms. LMNP/LMP concerns how your income (BIC) and social thresholds are taxed, while para-hôtellerie qualifies your activity for VAT purposes. The two can coexist — see our complete guide to para-hôtellerie.
Status is reassessed every calendar year. If your receipts fall back below €23,000 or below your other professional income, you revert to LMNP automatically, with no extra step beyond your regular tax filing.
Sources and Further Reading
This article was written from official French sources consulted in August 2026. Thresholds are periodically revised — verify current figures before making any decision.
BOFiP · impots.gouv.fr — BIC: scope and determination of the professional character of furnished rental
impots.gouv.fr — Furnished rentals: regimes and filing
Also worth reading: furnished tourist accommodation classification, our complete guide to para-hôtellerie, and short-term rental regulations in Chamonix.
For more on furnished-rental taxation, see our complete guide to para-hôtellerie.
Next step
Run the numbers before choosing a status
Before settling on LMNP or LMP, it helps to know what your property actually generates. Our estimator gives you an annual range in two minutes, already net of our commission and platform fees.
Estimate based on classic furnished rental. We’re happy to answer questions at +33 7 66 79 73 64
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This page covers the general rules. Your situation depends on your other income, any renovation plans, and your resale timeline. Tell us where you stand — we’ll get back to you within 24 business hours. Free, no obligation.
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