French rental income taxation: revenus fonciers, LMNP, LMP, and SCI à l'IR.
Written by the OpenAccountants team. Written by the OpenAccountants team from the official sources it cites.
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Every figure is drawn from this Guide and cited to its source.
Régime réel obligatory threshold
Obligatory above EUR 15,000 gross, or on irrevocable 3-year option.
Construction/extension works not deductible
Construction / extension / reconstruction works are NOT deductible — they only increase the acquisition cost for future capital gains computation.
Critical constraint — 3-year holding after déficit imputation
Do not sell the property within 3 years after imputing a déficit on global income — otherwise the déficit is clawed back.
Post loi Le Meur reform
Post loi Le Meur reform (Nov 2024), applicable revenus 2025 — the key distinction is now classified vs unclassified tourism.
Régime réel obligatory above ceiling
Above the ceilings: régime réel is obligatory.
2042-C-PRO boxes
5ND (long-term / unclassified), 5NG (classified tourism)
BIC result formula
BIC result = receipts − charges − amortisation
LMNP deficit rule
LMNP deficit: NOT imputable on global income (unlike LMP). Reportable on furnished BIC income for 10 years.
PS rate on LMNP
18.6%L. 136-6 CSS
LMP conditions
1. Furnished rental receipts > EUR 23,000 per year 2. AND furnished rental receipts > 50% of total professional income of the household (salaries + BNC + BIC + director compensation)
Default regime
Default regime: fiscal transparency. Income and charges flow directly to each partner's personal tax return pro rata to their shares.
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
Based on work by Romain Simon (@romainsimon), licensed under MIT. Adapted for the OpenAccountants format.
Disclaimer: This skill is for informational purposes only and does not constitute tax advice. All positions must be reviewed and signed off by a qualified expert-comptable or avocat fiscaliste before filing. Get this reviewed at openaccountants.com.
Quick Reference
Quick Reference
| Field | Value |
|---|---|
| Country | France |
| Taxes covered | IR on rental income, prélèvements sociaux |
| Currency | EUR only |
| Tax year | Calendar year |
| Key forms | 2042 (case 4BE), 2044, 2044-SPE, 2042-C-PRO, 2031, 2033, 2072 |
| Primary legislation | art. 14–33 quater CGI (fonciers), art. 35-I-5° bis CGI (LMNP), art. 155-IV CGI (LMP), art. 8 CGI (SCI) |
Fundamental Distinction
| Type of rental | Tax regime | Income category |
|---|---|---|
| Bare / unfurnished (location nue) | Revenus fonciers | Revenus fonciers (micro or réel) |
| Furnished non-professional (LMNP) | BIC | LMNP (micro-BIC or réel) |
| Furnished professional (LMP) | BIC | LMP (réel obligatory) |
| SCI at IR | Revenus fonciers | Fiscal transparency |
| SCI at IS | IS | Out of scope — see business accounting skill |
Classic error: declaring furnished rental as revenus fonciers. Furnished = BIC. The tax consequences are very different (amortisation possible under réel).
Micro-foncier parameters
| Parameter | Value |
|---|---|
| Condition | Gross rental income ≤ EUR 15,000 |
| Abattement | 30% automatic |
| 2042 box | 4BE |
| Exclusions | SCI, monuments historiques, Pinel, Borloo, Malraux |
Advantage: simplicity, no bookkeeping required. Disadvantage: no déficit possible. If actual charges > 30%, you overpay.
Deductible charges
| Charge | Deductible? | Notes |
|---|---|---|
| Mortgage interest (intérêts d'emprunt) | Yes — foncier income only | Never against global income |
| Maintenance / repair works (travaux d'entretien) | Yes | Not construction, not extension |
| Improvement works (travaux d'amélioration) | Yes | |
| Taxe foncière | Yes | Exclude TEOM (recoverable from tenant) |
| Insurance premiums (PNO, GLI) | Yes | |
| Management fees (agency, syndic non-recoverable) | Yes | |
| Provisions for co-ownership charges | Yes |
Déficit foncier rules
| Rule | Value |
|---|---|
| Imputable on global income | Up to EUR 10,700/year |
| Energy renovation exception | Up to EUR 21,400 (temporary device) |
| Excess beyond cap | Reportable on rental income for 10 years |
| Mortgage interest | NEVER imputable on global income — only on rental income |
Optimisation strategy: concentrate major works in one year to maximise the global income deduction.
Micro-BIC ceilings and abattements
| Type of furnished rental | Revenue ceiling | Abattement |
|---|---|---|
| Long-term furnished (LMNP longue durée) | EUR 77,700 | 50% |
| Classified furnished tourism (meublé de tourisme classé) | EUR 77,700 | 50% |
| Unclassified furnished tourism | EUR 15,000 | 30% |
Amortisation schedules
| Asset | Rate | Duration |
|---|---|---|
| Building (excluding land) | 2–3%/year | 25–40 years |
| Land | Non-amortisable | — |
| Furniture / equipment | 10–20%/year | 5–10 years |
| Major works | Per useful life | Variable |
Fiscal result is often nil or negative thanks to amortisation → no IR on rents for years.
LMP vs LMNP consequences
| Feature | LMP | LMNP |
|---|---|---|
| Deficit imputation | On global income | Only on furnished BIC (10-year report) |
| Capital gains | Professional regime (exemption possible after 5 yrs under revenue conditions) | Private capital gains regime |
| Social contributions | TNS contributions on profit (SSI) — significant | PS only |
| IFI | Potentially exempt as professional asset | Taxable |
Involuntary reclassification trap: a drop in professional income (unemployment, retirement) can trigger LMP status despite unchanged rents. Monitor annually.
SCI at IR features
| Feature | SCI at IR |
|---|---|
| Income category | Revenus fonciers (micro or réel, depending on total rental income of household) |
| Amortisation | Not available (unlike SCI at IS) |
| Capital gains on sale | Private real estate capital gains regime (exemption: 22 years IR / 30 years PS) |
| Typical use | Heritage transmission (démembrement, donation of shares), long-term bare rental |
Meublé in SCI = risk of IS reclassification. Furnished rental in an SCI exposes it to IS regime reclassification.
Allows amortisation but capital gains at sale are computed on net book value (after amortisation) → much heavier taxation. See business accounting skill.
Forms Summary
| Regime | Form |
|---|---|
| Micro-foncier | 2042 case 4BE |
| Régime réel foncier | 2044 (or 2044 spéciale) |
| Micro-BIC LMNP | 2042-C-PRO (cases 5ND, 5NG, etc.) |
| Réel LMNP / LMP | 2031 + 2033 (liasse BIC) + 2042-C-PRO |
| SCI at IR | 2072 (SCI declaration) + report on 2044 (partners) |
Conservative Defaults
| Ambiguity | Default |
|---|---|
| Furnished vs bare unclear | Classify as bare rental (revenus fonciers — no amortisation; conservative) |
| Regime unknown | Micro (simplest; check ceiling) |
| LMP vs LMNP unclear | LMNP (no TNS contributions) |
| Déficit foncier eligibility unclear | Do not impute on global income |
| Tourism classification unclear | Unclassified (30% abattement — most conservative) |
Key Legal References
| Rule | Article |
|---|---|
| Revenus fonciers | art. 14 to 33 quater CGI |
| Déficit foncier | art. 156-I-3° CGI |
| LMNP | art. 35-I-5° bis CGI |
| LMP | art. 155-IV CGI |
| SCI transparency | art. 8 CGI |
| PS on LMNP (revenus du patrimoine) | art. L. 136-6 CSS |
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