Many facilitations allows to stimulate property purchase, and to galvanise the new real estate market in France, making it difficult to get through the multitude of available advantages in order to maximise property investments. Immo Expat clarifies the situation for you, with today, the LMNP : Non-professional rental of furnished property.

Since 1947, the LMNP statute allows to invest in furnished property, while benefiting from tax advantages. The difference with the Censo-Bouvard law lies essentially in the type of facilitating pattern. Indeed, while the Censi-Bouvard law permits a tax exemption on the property cost, the LMNP system offers amortisations on the property and the furniture. Moreover, the incomes from the rental are considered as business profits (BIC), instead of property earnings.

Therefore, particularly stable and ruled by the civil code, the LMNP statute allows to subtract the loan interest from taxes, but also ownership costs, facility fees, maintenance and repairs expenses, furnitures amortization for a maximum period of seven years, and the property amortization for a maximum period of 30 years. Thereby, the LMNP statute, in order to realise a property investment, is particularly interesting for any purchaser wishing to build up a lasting income.

The LMNP statute doesn’t require any particular condition, except not to be a professional renter, to realise less than 23 000 € of annual income as a renter, or to receive less than 50 % of the incomes as a renter. Then, you need to sign a commercial lease for a minimum length of 9 years, and to furnish the accommodation according to the Alur law.

For your next property purchase, the LMNP statute is a way to become owner with no down payment, in order to make a retirement capital for yourself. Then you can generate renting incomes without any management difficulty, while reducing your taxes by until 6000 € per year. Last, it is a way to ensure the future of your relatives, and even the pleasure of the present, by enjoying the weeks of availability if you buy in a tourism residence.