“I earn more than €23,000, so I must be LMP” — that is the most widespread misconception among short-term rental owners, and it is wrong. Moving from LMNP (loueur en meublé non professionnel, non-professional furnished letting) to LMP (loueur en meublé professionnel, the professional version) rests on two cumulative conditions, not one, and in any case it is not something you opt into. This guide explains how the status is really determined, what it changes in practice, and why it is neither good nor bad in itself.
This status is separate from para-hôtellerie, a VAT regime we set out 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 the majority of your income) have to be met together, not just one
- The threshold is assessed on gross receipts for the calendar year, not on profit
- Switching to LMP triggers cotisations sociales, not just a bigger tax bill
- The micro-BIC threshold (€77,700 or €15,000) is separate from the LMP threshold — don’t confuse the two
- The status is reassessed every year, in both directions
- The best status depends on your plans (resale, renovation, retirement), not on a universal rule
1. LMNP or LMP: Two Cumulative Conditions, Not a Choice
Non-professional furnished letting (LMNP, loueur en meublé non professionnel) is the default status: the vast majority of owners stay there for life, with no particular formality. Moving to LMP (loueur en meublé professionnel) is not a choice you make — it follows automatically from your receipts, provided both of the following criteria are met at the same time.
Worth remembering: if just one of the two conditions is not met you stay LMNP, even with receipts well above €23,000.
- Your furnished rental receipts for the year exceed €23,000 (gross receipts, charges included)
- Those same receipts exceed the household’s total other professional income (salaries, BIC, BNC, company-director income)
2. Micro-BIC or Régime Réel: Don’t Confuse the Thresholds
Separately from your LMNP/LMP status, a second mechanism decides how you declare your income: the micro-BIC threshold. It is distinct from the €23,000 threshold and depends on whether your property is classified: €77,700 of receipts for a classified meublé de tourisme (furnished tourist accommodation), with a flat 50% allowance, against €15,000 for an unclassified property, with a 30% allowance. Classification — set out in our guide to classifying furnished tourist accommodation — therefore has a direct tax impact.
Above these thresholds the régime réel becomes compulsory: you deduct your actual costs and depreciate the property, which calls for stricter bookkeeping but can cut the taxable base sharply.
Worth remembering: you can perfectly well be LMNP on the régime réel (because the micro-BIC threshold has been passed) without ever becoming LMP. These are two independent mechanisms, and they are often confused.
3. Cotisations Sociales: the Real Cost of Switching to LMP
This is the most concrete change. Under LMNP, your rental income bears the standard prélèvements sociaux (social levies) at 17.2%. Under LMP, your profit becomes subject to cotisations sociales (social security contributions) payable to URSSAF, calculated on a markedly higher base and at a markedly higher rate than plain LMNP taxation — which is what makes the status less attractive to many owners, even when they tip into it without meaning to.
Moving to LMP also means registering with the registre du commerce et des sociétés (the trade and companies register) and keeping commercial-style accounts, heavier than the simple asset management of an LMNP property.
4. How the Status Is Checked Each Year
There is generally nothing voluntary to do in order to “become” LMP: the status follows automatically from the receipts you declare, reassessed every year. In practice, here is how it is checked:
- Add up all your furnished rental receipts for the calendar year
- Compare that total with the household’s other professional income
- If both thresholds are passed, registration with the registre du commerce is required
- If your receipts fall back the following year, you revert to LMNP automatically
5. Offsettable Losses and IFI: LMP’s Sometimes Forgotten Advantages
LMP is not all drawbacks. If you take on major renovation work, an LMP loss is offsettable without limit against the household’s total income — unlike LMNP, where a loss can only be set against income of the same kind, and carried forward. That is a real advantage for an owner renovating heavily at the start of a letting venture.
A property let under LMP may also, subject to conditions, be exempt from IFI (the French wealth tax on property) if it counts as a business asset for tax purposes — a point to check systematically with an accountant, in the light of your overall asset position.
6. Why This Isn’t a Decision to Make Alone
The most advantageous status depends entirely on your situation. Do you have other substantial professional income? Are you planning heavy renovation work? Do you expect to sell the property in the medium term (a professional capital gain under LMP follows different rules from a private one)? These factors rarely line up in an obvious way, which is why it is worth having your situation checked by an accountant before changing regime.
On the operational side, the tax status you end up with changes nothing about the day-to-day running of your property — cleaning, guest welcome and maintenance stay the same whether you are LMNP or LMP. That is where Care Concierge comes in, day to day in the valley.
FAQ – LMP or LMNP Status
No. The status is not a voluntary choice: it follows automatically from crossing both thresholds together (your receipts, and their share of household income). You cannot opt into LMP in advance.
No, it depends entirely on your situation. LMP lets you offset a loss against your total income and offers a possible IFI exemption, but it exposes you to cotisations sociales that are often heavier than LMNP taxation. It only works out well for certain profiles, particularly where major renovation work is involved.
Yes, registration with the registre du commerce et des sociétés is required once both LMP conditions are met, along with the commercial accounting obligations that come with it.
They are two separate mechanisms. LMNP/LMP concerns how your income is taxed (BIC) and the social thresholds, while para-hôtellerie qualifies your activity for VAT purposes. The two can coexist: see our complete guide to para-hôtellerie.
The status is reassessed each calendar year. If your receipts drop back below €23,000, or below your other professional income, you revert to LMNP automatically, with nothing to do beyond your tax return.
Sources and Further Reading
This article was written from official French sources consulted in August 2026. Thresholds are revised periodically: check the amounts in force before making any decision.
BOFiP · impots.gouv.fr — BIC: scope, and how the professional character of furnished letting is determined
impots.gouv.fr — Les locations meublées: regimes and tax returns
Also worth reading: furnished tourist accommodation classification, the complete guide to para-hôtellerie and short-term rental regulations in Chamonix.
For more on the taxation of furnished letting, see our complete guide to para-hôtellerie.
Next step
Work out what your property earns 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
A tailored comparison
LMNP or LMP: which status fits your property?
This page sets out the general rules. Your own situation depends on your other income, your renovation plans and whether you expect to sell. Tell us where you stand — we’ll get back to you within 24 business hours. Free, no obligation.
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Further reading: our turnkey Airbnb property management, and our town-by-town pages — Chamonix · Megève · Saint-Gervais-les-Bains · Sallanches.
