LMNP in Paris 2026: taxation, depreciation, actual-expenses regime — the complete guide

The LMNP status (non-professional furnished landlord) is arguably the most powerful tax scheme for a Paris property owner in 2026. Used correctly, it lets you collect rental income for 10 to 15 years without paying tax. Here's how.

LMNP: what exactly are we talking about?

The LMNP (non-professional furnished landlord) is a tax status that applies to any owner letting a furnishedhome, provided that:

• Annual revenue is below €23,000, OR
• Revenue represents less than 50% of the household's total income

Above these thresholds, the owner becomes an LMP (professional furnished landlord), a different regime (less advantageous in most cases, but with its own specific features).

LMNP covers all furnished lettings: short term (Airbnb), medium term (civil lease, mobility lease) or long term (1-year furnished lease). Whatever the length of the lease, it is the fact that the home is furnished that triggers the status.

The two LMNP tax regimes

Micro-BIC regime (default)

Without any particular step, an LMNP owner is automatically placed under the micro-BIC regime. Revenue is taxed after a 50% flat-rate allowance (reduced to 30%, with a €15,000 revenue ceiling, for unclassified furnished tourist lets since the Le Meur law).

Example: €20,000 of revenue → taxed on €10,000 (50% allowance).

Advantages: absolute simplicity (no accounting). Drawbacks: the flat-rate allowance is often lower than actual expenses.

Actual-expenses regime (optional)

The actual-expenses regime is the tax regime of choice for a landlord in 2026. It lets you deduct all actual expenses, as well as the depreciation of the property and furniture. The result: in the vast majority of cases, taxable profit becomes zero or negative for 10–15 years.

Under the actual-expenses regime, your rental income escapes tax almost entirely during the first decade. This is legal and provided for by the French General Tax Code.

Depreciation: the secret of LMNP under actual expenses

Depreciation is the key to the actual-expenses regime. For tax purposes, a home has a lifespan: it is considered to "lose" part of its value every year, and this loss is deductible from rental income.

Usual depreciation periods

Land CANNOT be depreciated (about 15–20% of the purchase price in Paris).

Worked example: a €500,000 apartment in Paris

Breakdown of the price:

• Land (15%): €75,000 → not depreciable
• Building (70%): €350,000 → depreciated over 30 years → €11,667/year
• Fittings (15%): €75,000 → depreciated over 15 years → €5,000/year
• Furniture (on top of the price): €15,000 → depreciated over 7 years → €2,143/year

Total annual depreciation: about €18,810

Deductible expenses under the actual-expenses regime

In addition to depreciation, all actual expenses are deductible:

• Loan interest (for a property bought with a mortgage)
• Property tax
• Co-ownership service charges (the owner's share, not the tenant's)
• Non-occupying owner's insurance (PNO)
• Management fees (Full Concierge, agencies, building manager)
• Maintenance and repairs
• Accounting fees (chartered accountant)
• Notary fees (on purchase, depreciable or deductible)
• CFE contributions (business property tax)

Simulation: a one-bedroom in Paris 11

Let's take a concrete case: a one-bedroom bought for €480,000 in Paris 11, 80% financed, let medium term under a civil lease.

In this example: €6,080 of cash collected, €0 of tax, and €10,420 of unused depreciation, carried forward to the following years.

How to switch to the actual-expenses regime?

You opt for the actual-expenses regime with a simple letter to the Business Tax Office (SIE) responsible for your property, before 1^st February of the year concerned. You are then committed for at least 2 years, renewable automatically.

Essential formalities

1. Registering as an LMNP: online declaration on inpi.fr (to obtain a SIRET number)
2. Opting for the actual-expenses regime: letter to the SIE before 1^st February
3. Annual bookkeeping: balance sheet, income statement, 2031 tax return package
4. Annual tax return: carrying the result over to form 2042 C PRO

Do you need a chartered accountant?

Technically, it is not mandatory. In practice, it is essential. An accountant specialising in LMNP charges €400–700 a year to:

• Set up the optimal depreciation schedule
• Keep the mandatory accounts
• Produce the tax return package (2031, 2033…)
• Secure your return in the event of a tax audit

The cost is more than offset by the tax savings: in our previous example, the accountant costs €500 but saves several thousand euros in tax.

Our Full Concierge support

Our role does not stop at rental management. We work with a network of accounting partners specialising in LMNP who support our owners from A to Z:

• Analysis of the tax situation before buying or letting
• Optimising the legal structure (own name, SCI subject to corporation tax, SCI subject to income tax)
• Annual bookkeeping at a negotiated rate
• Tax returns and protection in the event of an audit

To find out how much you could really save by switching to the LMNP actual-expenses regime, request a personalised tax simulation. We analyse your property, your income and your marginal tax rate, and calculate the precise impact on your taxes over the next 10 years.