Investment in LMNP & LMP

Opting for the status of Non-Professional Furnished Rental (LMNP) or Professional Furnished Rental (LMP) represents a strategic patrimonial and fiscal advantage in the French real estate market. These statuses allow generating rental income through the leasing of furnished properties, while benefiting from favorable taxation. Apex Capital assists you in unraveling the intricacies of each option, highlighting their benefits, eligibility criteria, and how they fit into your real estate investment plan.

 

LMNP: Non-Professional Furnished Rental

Intended for investors renting out furnished properties without it being their primary activity.

 

Advantages

•Optimized Taxation: Taxation under Industrial and Commercial Profits (BIC), allowing for allowances and the deduction of expenses, including property and furniture depreciation.

•Simplified Micro-BIC Regime: For annual rental income below €72,600 (2023), benefit from a 50% allowance, facilitating tax declaration.

•Possible Exemption from CFE: Under certain conditions, exemption from the Business Property Contribution (CFE) is possible.

 

Eligibility Criteria

•Rental income must be less than €23,000 annually or not exceed the other earned income of the tax household.

•Obligation to rent the property furnished, equipped for immediate habitation.

 

LMP: Professional Furnished Rental

This status is aimed at investors for whom furnished rental is the primary activity.

 

Advantages

•Total Deduction of Expenses and Depreciation: A fiscal boon for high incomes, thanks to the full deduction of expenses and depreciation.

•Exemption from IFI: Properties dedicated to LMP activity are excluded from the calculation of the French Wealth Tax (IFI).

•Favorable Treatment of Capital Gains: Advantageous tax regime after five years of activity in case of resale.

 

Eligibility Criteria

•Annual revenue exceeding €23,000.

•This revenue must represent more than half of the earned income of the tax household.

•Mandatory registration with the Trade and Companies Register (RCS).

 

Investment Strategies

•Prudent Property Selection: Prioritize locations with high rental demand to ensure profitability.

•Long-Term Fiscal Vision: Assess future tax impacts, considering possible depreciations and deductions.

•Diversification of Investments: To minimize risks, diversify your investments by including other types of real estate or financial assets.

 

Why Apex Capital?

 

•Expertise in Real Estate and Taxation: Our in-depth knowledge of LMNP and LMP investments helps you navigate their regulatory and fiscal complexities.

•Individualized Support: We assist you from property selection to rental management and tax optimization, ensuring a smooth investment.

•Personalized Approach: Your LMNP or LMP investment is carefully aligned with your patrimonial ambitions, optimizing your return.

 

To conclude

LMNP and LMP statuses open attractive prospects for real estate investors in France, combining potential rental income and tax benefits. Whether your investment is occasional or constitutes your main activity, these options deserve consideration. With Apex Capital, maximize the efficiency of your furnished real estate investment through top-tier expertise and support.

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