The status of non-professional furnished rental (LMNP) allows for generating rental income while benefiting from a specific tax framework. Since February 2025, Law No. 2025-127 has modified the calculation of capital gains upon the resale of LMNP properties under the real regime. This reform changes the game for any wealth strategy built around furnished rentals.
Reintegration of LMNP Depreciation: What the 2025 Law Changes for Resale
Before the reform, a LMNP owner under the real regime could depreciate their property for the entire holding period and then sell without these depreciations affecting the calculation of the capital gain. This mechanism allowed for the accumulation of two advantages: a reduction in taxable income each year and a capital gain calculated on the initial purchase price.
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Since February 15, 2025 (Article 84 of Law No. 2025-127, codified in Article 150 VB III of the CGI), the acquisition price is reduced by the depreciations applied under the real regime. The taxable capital gain mechanically increases, taxed at 19% income tax and 17.2% social contributions.
In practice, a property depreciated over several years will see its fiscal acquisition price decreased accordingly. The gap between this reduced price and the selling price generates a higher capital gain. To delve deeper into wealth management in LMNP with Capitaine Immo, this reintegration mechanism is now the first parameter to master.
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Service Residences LMNP: The Tax Exception to Know
The reintegration of depreciation into the capital gain does not apply to all LMNP properties. Service residences are exempt from this new rule. This exemption applies to student residences, senior residences, and certain medical-social establishments like nursing homes.
This distinction has a direct impact on property choice. An investor anticipating a medium-term resale has a tangible tax interest in directing their acquisition towards these categories of residences. Depreciation continues to function there as it did before the reform, without additional costs upon exit.
For a diversified portfolio, combining a classic long-term rental property with a unit in a service residence allows for leveraging two distinct tax timelines. The first generates optimized current yield through deductible expenses, while the second offers an exit route without depreciation penalties.
Real Regime or Micro-BIC in LMNP: Deciding Based on Holding Duration
The choice between simplified real regime and micro-BIC is not just a calculation of annual expenses. With the 2025 reform, this choice also engages the taxation of resale.
The real regime allows for the deduction of actual expenses (loan interest, renovations, management fees, insurance) and the depreciation of the property and furniture. The annual tax savings are often significant compared to micro-BIC and its flat-rate allowance. In return, every euro depreciated will inflate the taxable capital gain upon sale, except for service residences.
Micro-BIC, on the other hand, does not allow for any depreciation. The rental income undergoes a flat-rate allowance, and the capital gain upon resale is calculated on the actual purchase price, without reduction.
Criteria for Deciding Between the Two Regimes
- If actual expenses exceed the flat-rate allowance of micro-BIC and the holding period is planned for more than fifteen years (to benefit from allowances for holding duration on capital gains), the real regime remains relevant
- If resale is considered in the short or medium term for a classic property, micro-BIC avoids the reintegration of depreciations and may prove less costly overall
- If the property is located in a service residence, the real regime retains all its advantages since reintegration does not apply to resale
Thinking in a complete cycle, from acquisition to sale, helps avoid maximizing annual tax savings at the expense of the final wealth balance.
LMNP Accounting and Deductible Expenses: Often Underutilized Items
Under the real regime, the list of deductible expenses goes beyond loan interest and renovations. Several items are regularly overlooked or undervalued in declarations.
- Notary fees related to acquisition, depreciable or deductible depending on their nature
- Non-occupant owner insurance premiums (PNO) and unpaid rent insurance
- Fees for the accountant, mandatory for preparing the tax package under the real regime
- Travel expenses related to property management (visits, inventory), provided they are documented
- Depreciation of furniture over a different duration than that of the building, generally shorter
Maintaining a rigorous accounting with a specialized accountant in LMNP remains the basic condition for exploiting these items. An error in the allocation between land (non-depreciable) and construction can trigger a reassessment.
Holding Duration and Exit Strategy
The reform encourages extending the holding duration to benefit from progressive allowances on real estate capital gains. Another option is to switch the property to unfurnished rental or to convert it into a primary residence before sale, which can neutralize all or part of the capital gain.
These decisions should be prepared several years before the sale. Changing the mode of operation of an LMNP property at the last minute is not enough to escape the reintegration of already applied depreciations.
The LMNP status remains an effective wealth tool, provided that the exit taxation is integrated from the initial setup. Since 2025, a well-structured furnished investment should be considered over its entire lifespan, not just on the yield of the first years.