LMNP explained in English: the complete guide for foreign property buyers in France

What properties can be rented under LMNP?

The furnished requirement — what the law actually says

The word « meublé » in LMNP is not decorative. French law sets out a precise minimum list of furniture and equipment that a property must contain in order to qualify as a furnished rental. Simply leaving a bed and a wardrobe is not enough — the property must be genuinely habitable from the moment a tenant moves in, without them needing to supply their own essential items.

The official list, established by decree and applicable to all furnished rentals, requires the following to be present:

• Bedding with duvet or blanket
• Window coverings in rooms used for sleeping (curtains or shutters providing adequate darkness)
• Hob or hotplates for cooking
• Oven or microwave
• Refrigerator with a freezer compartment (or a separate freezer)
• Crockery and cutlery sufficient for meals
• Kitchen utensils and cooking equipment
• A table and seating
• Storage shelving or units
• Lighting fixtures
• Cleaning equipment appropriate to the size of the property (hoover, mop, broom, etc.)

This list represents the legal minimum. In practice, most furnished rentals — particularly those targeting short-term or holiday tenants — go considerably further, providing full kitchen equipment, linens, television, and internet access. But for tax classification purposes, meeting this minimum standard is what separates a « meublé » from an unfurnished property in the eyes of the French tax authorities.

If a property does not meet these criteria, any rental income it generates will be taxed under the revenus fonciers (property income) regime rather than under LMNP rules — a distinction that matters enormously, as the revenus fonciers regime does not allow depreciation and is generally less tax-efficient for higher-income landlords.

Types of properties eligible for LMNP

One of the appealing features of LMNP is how broad its scope is. The status applies to a wide range of property types, and there is no restriction based on the size, age, or location of the property. The key requirement is always that the property is furnished to the legal standard and rented out — the rest is relatively flexible.

Standard residential apartments and houses

The most common application. A furnished flat rented to a long-term tenant — a student, a young professional, an expat on a work assignment — is the archetypal LMNP situation. Long-term furnished rentals of this kind benefit from the most favourable micro-BIC thresholds (covered in the next section) and are the focus of most buy-to-let investment strategies under LMNP.

Holiday homes and short-term rentals

A property rented on a short-term basis — via Airbnb, Abritel, or directly — also qualifies under LMNP, provided it meets the furnished requirement. However, as we will cover in detail later, the tax rules for short-term and tourist rentals have been significantly tightened since 2024, and this segment of the market now operates under considerably less favourable micro-BIC conditions than was previously the case.

Managed residences (résidences de services)

This is a category that often surprises foreign buyers. France has a well-developed market in purpose-built managed residences — student residences, senior residences, tourist residences, and EHPAD (care homes for the elderly). Buyers purchase individual units within these developments and sign a commercial lease with the operating company, which manages everything on their behalf.

These properties can qualify for LMNP, and historically they were heavily marketed on the basis of VAT recovery on the purchase price alongside the LMNP tax advantages. The landscape for these investments has become more complex in recent years, and buyers should seek specific advice before committing — the commercial lease structure and the financial health of the operating company introduce risks that do not exist with a standard residential rental.

New builds and older properties

LMNP applies equally to new and existing properties. New builds offer better energy performance and construction warranties, while older properties offer lower purchase prices and renovation potential. The choice between the two affects not just the purchase price but also the depreciation calculation under the real tax regime — a point we return to in the section on tax regimes.

A note on energy performance ratings

Since the introduction of the Loi Le Meur in 2024, energy performance has become an increasingly important factor for all rental properties in France. Properties rated G are already banned from new short-term rentals, F-rated properties will follow in 2028, and from 2034 only properties rated A to D will be permitted. While these restrictions were introduced primarily in the context of short-term tourist rentals, the broader trajectory of French housing policy is clearly towards tighter energy standards across all rental categories. Foreign buyers purchasing older properties — particularly rural stone buildings or older urban apartments — should factor renovation costs into their projections accordingly.

The two tax regimes under LMNP

Once you qualify as LMNP, you must choose how your rental income will be taxed. There are two options: the micro-BIC regime and the régime réel. The choice between them is one of the most consequential decisions you will make as an LMNP landlord, and it is worth understanding both in detail before committing.

A quick note on terminology: BIC stands for Bénéfices Industriels et Commerciaux — industrial and commercial profits. Furnished rental income is classified as BIC rather than as property income (revenus fonciers) under French tax law, which is what makes the LMNP regime structurally different — and in many cases more advantageous — than renting out an unfurnished property.

Micro-BIC — the simplified option

The micro-BIC regime is the default option for landlords whose gross rental income falls below certain thresholds. It works on a simple principle: the tax authorities apply a flat-rate allowance to your gross rental income, and you are taxed only on the remainder. No receipts, no accountant, no detailed expense tracking — just a single figure declared on your annual tax return.

The allowance rates and income ceilings as of 2026 are as follows:

Long-term furnished rentals (standard residential)

• Income ceiling: €77,700 gross per year
• Flat-rate allowance: 50%
• You are taxed on 50% of your gross rental income

Unclassified short-term tourist rentals (e.g. a standard Airbnb listing without official classification)

• Income ceiling: €15,000 gross per year
• Flat-rate allowance: 30%
• You are taxed on 70% of your gross rental income

Classified short-term tourist rentals (meublés de tourisme classés — properties with an official star rating)

• Income ceiling: €77,700 gross per year
• Flat-rate allowance: 50% (with an additional 21% available in non-tense zones, subject to conditions)
• You are taxed on 50% of your gross rental income

The thresholds for unclassified short-term rentals represent a dramatic tightening compared to the rules that applied before 2025. Previously, all furnished rentals — including Airbnb-style lettings — benefited from a €77,700 ceiling and a 50% allowance. The 2026 French budget introduced a much lower turnover threshold of €15,000 with a 30% deduction for unclassified furnished lets — a change that has rendered the micro-BIC regime largely unworkable for anyone generating meaningful income from short-term tourist rentals without an official classification.

The micro-BIC regime is simple and requires no professional assistance to operate. For a landlord with modest rental income, low actual expenses, and a preference for administrative simplicity, it can be perfectly adequate. However, its fundamental limitation is that the flat-rate allowance takes no account of your actual costs. If your real expenses — mortgage interest, property management fees, insurance, maintenance, property tax — amount to more than the allowance percentage, you are overpaying tax.

Régime réel — the optimisation option

The régime réel (real expenses regime) allows you to deduct your actual costs against your rental income, rather than accepting a flat-rate allowance. For most property investors with a mortgage or significant running costs, this is where the genuine tax efficiency of LMNP resides.

Under the régime réel, the following expenses are deductible:

• Mortgage interest (not capital repayment, but the interest element)
• Property management fees (agence, conciergerie)
• Insurance premiums (including landlord liability insurance)
• Taxe foncière (annual property ownership tax)
• Maintenance and repair costs
• Accounting fees (expert-comptable)
• Co-ownership charges (charges de copropriété) not recoverable from the tenant
• Furniture replacement costs

But the most powerful feature of the régime réel — and the one most frequently cited by advisers recommending LMNP to investors — is depreciation.

Under French accounting rules applicable to LMNP, the property itself (excluding the land value, which is not depreciable) and its contents can be depreciated over time and deducted from taxable income. Typically:

• The building structure is depreciated over 25 to 40 years
• Fixtures and fittings over 10 to 15 years
• Furniture and appliances over 5 to 10 years

In practice, this means that a landlord who purchased a furnished flat for €200,000 (of which, say, €160,000 is attributable to the building and €10,000 to furniture) could potentially deduct several thousand euros per year in depreciation charges alone — on top of all actual running costs. In many cases, the combination of real expenses and depreciation reduces taxable rental income to zero, or close to it, for a sustained period.

There is an important rule: depreciation cannot generate a deficit. The non-deductible portion of depreciation can however be carried forward without time limitation. This means that if your depreciation charge exceeds your net rental income in a given year, the excess is not lost — it is simply deferred to future years when it can be used to shelter future profits.

The régime réel does require more administrative effort. You must maintain proper accounts, file a dedicated tax form (liasse fiscale, specifically the form 2031 and its annexes), and in practice most landlords engage an expert-comptable (chartered accountant) to handle this. Accounting fees typically run between €300 and €800 per year depending on the complexity of your situation — a cost that is itself deductible.

Which one should you choose?

The honest answer is: it depends on your numbers, and you should model both options before deciding.

As a general rule of thumb:

• If your gross rental income is low and your actual expenses are modest — micro-BIC is probably simpler and sufficient
• If you have a mortgage on the property, significant running costs, or a high purchase price that generates meaningful depreciation — régime réel will almost certainly produce a better tax outcome
• If you are renting short-term without an official classification and your income exceeds €15,000 — micro-BIC is no longer available to you and régime réel is mandatory

For rental investment in existing properties, long-term furnished rental under LMNP régime réel remains, in 2026, the most profitable and sustainable option according to most practitioners in the field — though this must always be assessed against your individual circumstances.

One practical note: switching from micro-BIC to régime réel is possible, but switching back is subject to restrictions. It is worth making the right choice from the outset, ideally with the guidance of a French accountant who specialises in rental property.

The depreciation advantage — and its new limits

Depreciation — known in French as amortissement — has long been described as the crown jewel of the LMNP régime réel. It is the feature that sets furnished rental taxation apart from virtually every other form of property investment income in France, and it is the reason why so many advisers have historically recommended LMNP to buy-to-let investors looking to minimise their tax burden over the long term.

But a significant reform that came into force in 2025 has changed the picture at the point of sale — and any foreign buyer considering LMNP in 2026 needs to understand both the advantage and its new limitation before making investment decisions.

How depreciation works under LMNP

The underlying principle is straightforward. When you purchase a furnished property and place it on the LMNP régime réel, you treat the property as a business asset. Like any business asset, it is assumed to lose value over time through wear and tear — and that notional loss in value can be deducted from your taxable rental income each year.

The calculation starts by separating the total purchase price into its component parts:

Land value — Land does not depreciate and cannot be deducted. An estimate of the land component must be established, typically representing 10% to 20% of the total price in urban areas, though this varies considerably by location.

Building structure — The remaining value attributable to the building itself is depreciated over a long period, typically 25 to 40 years depending on the nature of the construction and the accountant’s assessment.

Fixtures, fittings and works — These are depreciated more quickly, typically over 10 to 15 years.

Furniture and appliances — Depreciated over 5 to 10 years.

To illustrate with a concrete example: suppose you purchase a furnished apartment in Bordeaux for €250,000, with notary fees (frais de notaire) of €18,000, bringing your total acquisition cost to €268,000. Your accountant estimates the land value at 15%, leaving €227,800 attributable to the building and contents. If the building is depreciated over 30 years, that generates an annual depreciation charge of roughly €7,600 on the structure alone — before accounting for furniture and fittings.

Combined with deductible expenses such as mortgage interest, property tax, management fees and insurance, it becomes clear how a landlord under the régime réel can arrive at a taxable rental income of zero — entirely legally — for many years running. The income is real; the tax liability, for the time being, is not.

This is not a loophole. It is a deliberate feature of the French tax system, designed to encourage investment in the furnished rental sector by recognising that buildings and their contents do genuinely depreciate over time and require reinvestment.

The 2025 reform — amortissement recaptured on resale

Here is where the picture changed — significantly — for investors planning to sell their property after a period of LMNP rental.

Prior to the reform introduced by the 2025 Finance Act, depreciation deducted during the rental period had no effect on the capital gains calculation at the point of sale. In other words, you could benefit from years of depreciation deductions to shelter your rental income, and then sell the property under the standard individual capital gains regime as if no depreciation had ever been taken. This was, by any measure, a generous double benefit.

From 2025 income onwards, amortisation taken during ownership is now reintegrated into the capital gains calculation when the property is sold. While amortisation still offers yearly tax relief, it can increase the taxable gain at resale — particularly for investors with shorter holding periods.

In practical terms, this means that the purchase price used to calculate your capital gain on sale is reduced by the cumulative depreciation you have deducted over the years. If you bought a property for €250,000 and deducted €60,000 in depreciation over ten years, the cost base for capital gains purposes is now treated as €190,000 rather than €250,000 — increasing your taxable gain accordingly.

There are some exceptions to this reintegration rule. Depreciation related to construction, reconstruction, expansion, and improvement expenses will not be reintegrated. Additionally, certain types of residences are exempt from this adjustment, including university residences, senior service residences, social and medico-social establishments, and nursing homes.

The practical consequences of this reform depend heavily on your holding period and your exit strategy:

Short holding periods (under 10 years) — The impact is most acute here. Investors who planned to buy, benefit from depreciation for a few years, and then sell at a profit will find that the tax saving on rental income comes at the cost of a higher capital gains bill on exit. The net benefit needs to be modelled carefully.

Long holding periods (over 22 years) — The picture improves considerably, because the standard French capital gains exemptions that apply with time (covered in the next section) progressively reduce and eventually eliminate the taxable gain. For a long-term buy-and-hold investor, depreciation remains genuinely valuable even after this reform.

Managed residences and care homes — As noted above, certain property categories are exempt from the reintegration rule, which preserves their attractiveness for investors who were drawn to them specifically for the combined depreciation and LMNP benefits.

The overarching message for foreign buyers is this: depreciation under LMNP régime réel remains a meaningful and legitimate tax planning tool in 2026, but it is no longer the uncomplicated double benefit it once was. In Paris — and by extension in other high-value markets — where property values and potential capital gains are high, this change makes long-term planning and exit strategy more important than ever. Factor your intended holding period into the equation from the outset, and model the full lifecycle of the investment — not just the annual tax saving during the rental phase.

Capital gains tax when you sell

At some point, most property owners sell. Whether you are repatriating capital, restructuring a portfolio, or simply moving on, understanding how capital gains are taxed under LMNP is essential — and, as touched on in the previous section, the rules have become more nuanced since the 2025 reform.

The good news is that LMNP landlords benefit from the individual capital gains regime (plus-values des particuliers) rather than the professional capital gains regime that applies to LMP landlords. This is one of the most tangible advantages of maintaining LMNP status, and it is precisely why the 2026 correction for non-residents — ensuring they are no longer pushed into LMP by default — matters so much in practice.

How the capital gains calculation works

The taxable capital gain on the sale of a French property is calculated as the difference between the sale price and the adjusted acquisition cost. Under the standard regime, the acquisition cost includes the purchase price plus notary fees and any capital improvement works carried out (though not routine maintenance or repairs).

Following the 2025 reform described in the previous section, the acquisition cost is now further reduced by any depreciation deducted during the LMNP rental period. This is the reintegration mechanism: the more depreciation you have claimed, the lower your adjusted cost base, and the higher your potential taxable gain.

The resulting gain is then subject to two taxes:

Income tax on capital gains: 19% This flat rate applies to all sellers, whether resident or non-resident in France.

Social charges The rate depends on your personal situation and country of residence:

• French tax residents: 17.2%
• EU/EEA residents and those affiliated to a social security scheme in another EU country, Switzerland, or the UK: 7.5%
• Non-residents from outside the EU (including Americans, Australians, Canadians, and post-Brexit UK residents who are not affiliated to a European social security scheme): 17.2%

The combined rate for most non-EU non-residents is therefore 36.2% on the taxable gain before any exemptions are applied — a significant figure that underscores why holding period matters so much in the overall investment calculation.

An additional surtax applies to gains exceeding €50,000, at rates ranging from 2% to 6% depending on the size of the gain.

Time-based exemptions — the 30-year rule

The French capital gains regime is structured to reward long-term ownership. The longer you hold the property, the smaller the taxable proportion of your gain — and after a sufficiently long holding period, the gain is entirely exempt.

The exemption schedule works as follows:

For income tax (19% rate):

• No reduction for the first 5 years of ownership
• 6% reduction per year from year 6 to year 21
• 4% reduction in year 22
• Full exemption from income tax after 22 years of ownership

For social charges (17.2% rate):

• No reduction for the first 5 years
• 1.65% reduction per year from year 6 to year 21
• 1.60% reduction in year 22
• 9% reduction per year from year 23 to year 30
• Full exemption from social charges after 30 years of ownership

Full exemption from both taxes therefore requires 30 years of ownership. This is a long horizon, and not every buyer will hold for that duration — but even partial exemptions after 10 or 15 years can meaningfully reduce the tax bill on exit.

To illustrate: a property sold after 15 years of ownership would benefit from a 60% reduction in the income tax component (6% × 10 years from year 6 to year 15) and a roughly 16.5% reduction in the social charges component. The effective combined rate on the gain falls considerably from the headline 36.2%.

Specific considerations for non-resident sellers

Non-resident sellers face one additional administrative requirement that catches many foreign buyers off guard: the obligation to appoint a fiscal representative (représentant fiscal accrédité) if the sale price exceeds €150,000 and the seller is a non-EU resident.

This representative — typically a French bank or specialist firm — acts as guarantor to the French tax authorities for the capital gains tax due. Their fees, generally between 0.5% and 1% of the sale price, are an additional cost to factor into your net proceeds calculation. EU residents are exempt from this requirement.

Non-resident sellers should also be aware that the capital gains tax is withheld at source by the notaire at the point of completion. Unlike income tax, which is declared after the fact, capital gains tax on French property is paid on the day of sale — you receive the net proceeds after the notaire has deducted the tax due.

Two useful exemptions worth knowing

Two lesser-known but potentially valuable exemptions exist for non-resident sellers in particular: the ability to sell a previously rented property after having occupied it as a primary residence, and the possibility of selling a property to finance the purchase of a primary residence upon returning to France. If either of these situations applies to you — particularly if you are planning an eventual return to France — they are worth discussing with a tax adviser well in advance of any sale.

Social charges and non-residents

Social charges are one of the most confusing aspects of French property taxation for foreign buyers — and one of the most frequently misunderstood. They are separate from income tax, calculated on top of it, and the rate you pay depends not on where your property is located but on where you personally live and what social security system you are affiliated to. Getting this wrong can result in either overpaying or, worse, an unexpected bill from the French tax authorities years later.

What are social charges?

Social charges (prélèvements sociaux) are a set of levies applied to investment income and capital gains in France. They were originally introduced to fund the French social security system — hence the name — but they apply to property rental income and capital gains regardless of whether the taxpayer is actually enrolled in the French social security system.

For LMNP landlords, social charges apply to:

• Net rental income declared under LMNP (after the micro-BIC allowance or régime réel deductions)
• Capital gains on the sale of the property (as covered in the previous section)

The standard rate of social charges in France is 17.2%, made up of several component levies including the CSG (Contribution Sociale Généralisée) and CRDS (Contribution au Remboursement de la Dette Sociale). For French residents, this 17.2% is applied on top of their marginal income tax rate on rental profits.

Rates for non-residents — why your country of residence matters

For non-residents, the applicable rate depends on whether you are affiliated to a social security scheme within the European Economic Area (EEA), Switzerland, or — following specific post-Brexit arrangements — the United Kingdom.

The social charges rate is 7.5% for people affiliated to a social security scheme in another EU country, Switzerland or the UK, and 17.2% for residents of non-EU countries.

In practical terms, this means:

7.5% rate applies to:

• EU and EEA residents who are enrolled in their home country’s social security system (e.g. a German resident paying into the German system, a Spanish resident contributing to the Spanish system)
• Swiss residents affiliated to the Swiss system
• UK residents — the 7.5% rate was preserved for British nationals following Brexit, under the terms of the withdrawal agreement, provided they are affiliated to the UK National Insurance system

17.2% rate applies to:

• Residents of all other countries — including the United States, Canada, Australia, and any country outside the EU/EEA/Switzerland/UK framework
• Non-residents who are not affiliated to any recognised social security scheme

This distinction is significant. An American buyer owning a furnished rental property in France pays social charges at 17.2% on their net rental income and on any capital gain on sale. A British buyer in the same situation, affiliated to the NHS/National Insurance system, pays 7.5%. The difference compounds meaningfully over time, particularly on rental income that builds up year after year.

It is worth noting that the reduced 7.5% rate is not automatic — it must be claimed, and in practice it requires documentary evidence of affiliation to a foreign social security scheme. Non-EU buyers who believe they may qualify for a reduced rate should seek specific advice and ensure their accountant files the appropriate documentation with their French tax return.

SSI contributions above €23,000

There is a further layer of social contribution that applies specifically when gross furnished rental income exceeds the €23,000 threshold — regardless of whether the landlord is classified as LMNP or LMP.

As soon as gross rental income exceeds €23,000 per year, the landlord becomes subject to social security contributions for the self-employed (SSI — Sécurité Sociale des Indépendants).

These SSI contributions are substantively different from the standard social charges described above. They are higher, calculated on a different basis, and — unlike the flat social charges — they do theoretically entitle the contributor to certain French social security benefits, though in practice most non-resident landlords have little use for these entitlements.

The SSI contribution rate is approximately 40% on the net profit from furnished rental activity, though the effective rate varies depending on the regime and the level of income. This is a significant additional cost for landlords whose gross rental income crosses the €23,000 line, and it is one of the reasons why many investors are careful to structure their portfolio in a way that keeps income below this threshold — or to ensure that their other professional income is sufficiently high to maintain LMNP status rather than drifting into LMP.

For non-residents already paying social charges at 17.2% on income below €23,000, crossing this threshold triggers a shift to SSI contributions that can substantially alter the economics of the investment. Modelling your rental income projections carefully — and revisiting them as rents rise — is essential.

A note on double taxation treaties

France has concluded double taxation treaties with most countries from which foreign buyers typically originate — including the United Kingdom, the United States, Germany, Belgium, the Netherlands, Australia, and Canada, among many others. These treaties generally assign the primary right to tax French property rental income to France, while providing mechanisms — credits or exemptions — to prevent the same income from being taxed twice in your country of residence.

However, social charges occupy an awkward position in many of these treaties. They are not always recognised as « taxes » for treaty purposes, and their treatment varies from one treaty to another. American buyers in particular should be aware that the France-US tax treaty has historically generated uncertainty around the creditability of French social charges against US tax — a point that has been the subject of litigation and should be discussed with an adviser familiar with cross-border US-France taxation.

The overarching message: social charges are not optional, not trivial, and not uniform. Know your rate before you buy, model it into your return projections from day one, and ensure your annual French tax return correctly reflects your social security affiliation status.

How to register as LMNP in France

One aspect of LMNP that surprises many foreign buyers is that it is not simply a tax status you declare on a form at the end of the year — it requires active registration with the French authorities before you begin renting. Failing to register, or registering late, can result in penalties and complications with your tax filings. The process is not particularly onerous, but it does need to be done correctly and in the right sequence.

Getting your SIRET number

Because furnished rental income is classified as BIC — commercial and industrial profits — rather than as property income, the French tax authorities treat LMNP landlords as operating a form of business activity. This means you are required to register your activity and obtain a SIRET number: a unique 14-digit business identification number issued by the French business registry.

The SIRET number is not a sign that you are running a company or have created a legal entity — you remain an individual landlord. It is simply the administrative mechanism by which the French system tracks your rental activity for tax and, where applicable, social security purposes.The registration process has been simplified in recent years and is now carried out online through the Guichet Unique platform (guichet-entreprises.fr), which serves as the single point of entry for all business registrations in France. This replaced the previous system of registering through the Centre de Formalités des Entreprises (CFE) of the local greffe du tribunal de commerce, which many found cumbersome.

To complete the registration you will need:

• Your personal identification (passport or national identity card)
• The address of the property to be rented
• The date on which rental activity begins or is intended to begin
• Your French tax identification number (numéro fiscal) if you already have one — if not, you will need to obtain one from the French tax authorities first
• Bank account details

The registration should ideally be completed within 15 days of commencing rental activity. In practice, many buyers register in advance of their first rental — particularly if they are purchasing a property with the explicit intention of renting it out from the outset.

Once registered, you will receive your SIRET number, which must be quoted on all correspondence with the tax authorities and, where applicable, on invoices issued to tenants or management companies.

Choosing your tax regime at registration

At the point of registration, you will be asked to indicate which tax regime you intend to operate under — micro-BIC or régime réel. This choice is not irrevocable, but switching regimes is subject to rules and timing constraints. Specifically:

• If you opt for the micro-BIC regime, you can switch to the régime réel at any time, but having done so you must remain on the régime réel for a minimum of two years before switching back.
• If you start on the régime réel, switching to micro-BIC is possible provided your income falls within the relevant thresholds, but again is subject to annual notification deadlines.

In practice, most landlords who engage an expert-comptable from the outset will elect the régime réel at registration, since the accountant’s involvement makes the additional administrative requirements manageable and the tax benefits typically outweigh the simplicity of micro-BIC within the first year or two.

Ongoing administrative obligations

Registration is a one-time step, but LMNP status comes with a set of recurring obligations that must be maintained throughout the period of rental activity.

Annual tax return

Every year, you must declare your furnished rental income on your French income tax return (déclaration de revenus). The specific form depends on your regime:

• Micro-BIC landlords declare their gross rental income on form 2042 C PRO, where the flat-rate allowance is automatically applied by the tax authorities.
• Régime réel landlords must file a more detailed liasse fiscale — a set of business accounting documents including form 2031 and its annexes — in addition to their personal income tax return. This is where the services of an expert-comptable become effectively indispensable.

Non-residents who have no other French income must still file a French income tax return annually, declaring their rental income. France operates an online filing system (impots.gouv.fr) that is accessible from abroad, though navigating it without French language skills and local knowledge can be challenging. Many non-resident landlords engage a French accountant or a specialist non-resident tax filing service to handle this on their behalf.

CFE — Cotisation Foncière des Entreprises

LMNP landlords are subject to the Cotisation Foncière des Entreprises (CFE), a local business tax that applies to their rental activity. The CFE is calculated based on the rental value of the premises used for the business activity — in practice, the property being rented out — and the rate varies by municipality. It is billed annually by the local tax authority and is typically a modest amount, though it is an additional cost to budget for. New registrants are generally exempt from CFE in their first year of activity.

Informing your insurer

This is not a regulatory obligation in the strict sense, but it is an important practical step that is frequently overlooked. Your property insurer must be informed that the property is being rented out as a furnished let. Standard homeowner’s insurance (assurance multirisque habitation) does not automatically cover rental activity, and failing to notify your insurer can invalidate your policy in the event of a claim. A specific landlord policy (assurance propriétaire non-occupant or PNO) is typically required.

Updating your registration if circumstances change

If you add additional properties to your LMNP activity, change your rental regime, cease rental activity, or sell the property, you are required to update your registration through the Guichet Unique accordingly. Ceasing activity in particular triggers specific formalities — including a final tax return covering the period up to cessation — that must be completed within defined deadlines.

A word on professional help

The registration process itself is relatively straightforward and can be completed without professional assistance. However, the ongoing tax filing obligations — particularly under the régime réel — are complex enough that most non-resident LMNP landlords benefit from engaging a French expert-comptable who specialises in rental property. The cost is modest relative to the tax savings involved, and as noted earlier, the accounting fees themselves are deductible under the régime réel.

For non-residents with limited French, there are accounting firms and tax advisers based in France who work in English and specialise specifically in the needs of foreign property owners. Identifying the right professional before you complete your purchase — rather than scrambling to find one at the end of your first rental year — will save considerable time and stress.

Short-term rentals under LMNP — new rules in 2025/2026

For many foreign buyers, the appeal of LMNP is inseparable from the idea of short-term letting. The prospect of renting out a French property on Airbnb or a similar platform during peak seasons — generating income while retaining the flexibility to use the property yourself — has driven a significant proportion of foreign purchases over the past decade, particularly in coastal, ski, and city-centre locations.

That model has not disappeared, but the regulatory and tax landscape surrounding it has changed substantially. The reforms introduced between 2024 and 2026 represent the most significant tightening of short-term rental rules in France in a generation, and any buyer considering this route needs to understand the new framework clearly before committing.

The Loi Le Meur and the micro-BIC crackdown

The centrepiece of the recent reforms is the Loi Le Meur, named after the French MP who championed it, which was adopted in late 2024. Its stated purpose is to address the housing crisis in high-demand areas by reducing the fiscal incentives that had encouraged property owners to favour short-term tourist lettings over long-term residential rentals.

The most impactful change, already covered in the tax regime section, concerns the micro-BIC allowances for unclassified short-term rentals. To recap: reforms now aim to reduce certain tax advantages — particularly those linked to short-term tourist rentals — while encouraging long-term residential use in high-demand cities.

The numbers tell the story plainly. Before the reform, an unclassified furnished tourist rental benefited from the same micro-BIC conditions as any other furnished let: a €77,700 income ceiling and a 50% flat-rate allowance. The approved changes introduced a much lower turnover threshold of €15,000 with a 30% deduction for all unclassified furnished lets. For a landlord generating, say, €25,000 per year from an Airbnb property, the micro-BIC regime is no longer available at all — they must now operate under the régime réel, with its associated accounting requirements and costs.

Beyond the tax changes, the Loi Le Meur introduced a series of regulatory obligations that apply specifically to short-term rental activity:

Mandatory registration with the local town hall

Before renting out a property as a short-term rental, owners must register their furnished tourist accommodation with the local town hall. This is a mandatory step, even for occasional rentals, and can now be completed via a centralised online platform which automatically transmits the information to the relevant town hall. Owners who had not yet registered were required to comply by January 2026.

Change-of-use authorisation in major cities

In certain French cities — particularly major metropolitan areas and high-demand zones such as Paris, Lyon, Bordeaux, and Nice — a change-of-use authorisation is required for short-term letting. In these cities, the change of use is generally subject to compensation requirements, meaning the owner must convert commercial premises into residential use to offset the loss of residential stock. This requirement effectively makes short-term letting of a primary residence in major cities significantly more complex and costly than before.

The 90-day limit for primary residences

France has long imposed a 90-day annual cap on short-term letting of primary residences in certain municipalities. The Loi Le Meur has reinforced enforcement mechanisms around this rule and given local authorities stronger powers to monitor compliance, including through data-sharing agreements with rental platforms. Foreign buyers who intend to use a property as both a short-term rental and a personal retreat should note that this limit applies to primary residences only — secondary residences are not subject to the 90-day cap, but may face other local restrictions.

Co-ownership buildings

Co-ownership rules have also been tightened: a two-thirds majority vote can now ban short-term Airbnb-style lettings within a building, whereas previously unanimity was required. For buyers considering a flat in a copropriété with short-term letting in mind, this is a material risk — a vote of the other owners could curtail the activity after purchase. Reviewing the règlement de copropriété (the building’s by-laws) and understanding the attitude of the syndicat des copropriétaires (the owners’ association) before buying is essential.

Energy performance requirements

An Energy Performance Diagnostic (DPE) is now mandatory for all new short-term rentals. Only properties rated from A to E can be rented as short-term tourist lets from 2025. From 2034 onwards, only A to D rated properties will be permitted. G-rated properties are already excluded from the market. For buyers of older rural or urban properties — which frequently carry E, F, or G ratings — this represents a genuine constraint and a potential renovation obligation before short-term letting can begin.

Classified vs. unclassified tourist rentals — a critical distinction

The single most important strategic decision for a foreign buyer intending to let short-term is whether to obtain an official tourist classification (classement en meublé de tourisme) for their property. The difference in tax treatment between classified and unclassified properties is now so significant that this decision can materially alter the economics of the investment.

An unclassified furnished tourist rental — the default status for any property listed on Airbnb or a similar platform without a formal star rating — now faces the restrictive micro-BIC conditions described above: a €15,000 ceiling and a 30% allowance.

A classified furnished tourist rental (meublé de tourisme classé), by contrast, retains access to the more generous regime: a €77,700 ceiling and a 50% allowance — with a possible additional allowance for properties in non-tense zones.

The classification is awarded by an accredited body (organisme certificateur) following an inspection of the property against a defined set of criteria covering equipment, comfort, services, and accessibility. Properties are awarded between one and five stars. The inspection process involves a fee — typically between €150 and €300 depending on the property size and the certifying body — and must be renewed periodically.

For investors, obtaining classification is now a strategic tool to maintain favourable taxation rather than simply a marketing badge. The additional administrative step and inspection cost are trivial relative to the tax benefit of retaining access to the 50% allowance and the €77,700 ceiling.

Buyers who are serious about short-term letting should factor the classification process into their pre-launch timeline and ensure their property meets the minimum criteria before booking the inspection. The criteria are publicly available and cover everything from the size of the accommodation and the quality of bedding to the provision of welcome information and the availability of internet access.

Is short-term letting still viable under LMNP in 2026?

The honest answer is: it depends on the property, the location, and the approach.

For a buyer who generates modest seasonal income — say, €10,000 to €14,000 per year from a rural gîte or a coastal apartment — and who obtains or already has a tourist classification, the LMNP framework remains workable. The micro-BIC 50% allowance preserves reasonable simplicity, and the income level keeps them well clear of the SSI contribution threshold.

For a buyer targeting high-yield short-term rental income in a major city — Paris, Lyon, Bordeaux, Nice — the landscape is considerably more complex. Change-of-use requirements, co-ownership restrictions, the 90-day cap, energy performance obligations, and the loss of favourable micro-BIC conditions for unclassified lets combine to create a significantly more challenging environment than existed even two or three years ago.

The direction of travel in French housing policy is clear: the government wishes to redirect furnished properties towards long-term residential use in high-demand areas, and the fiscal and regulatory tools being deployed to achieve this are real and consequential. Foreign buyers should not assume that the short-term rental model they read about in a 2022 guide still operates under the same conditions today.

That said, short-term letting under LMNP is not prohibited, not unviable, and not about to disappear. With the right property, the right location, the right classification, and the right tax regime, it remains a legitimate and potentially profitable strategy — it simply requires more careful planning and professional advice than it once did.