Vacation rentals have become the current new trend for travelers for flexible regulations and significantly cheaper prices compared to hotels. Many owners today aspire to become a non-professional furnished rental company. But how to do it ?
LMNP status: for whom?
The LMNP status is particularly suitable for owners who plan to invest for the long term. It is not really an investment dedicated to realizing capital gains. Rather, the status of non-professional furnished landlord makes it possible to build up real estate assets with a view to preparing for retirement, or an inheritance. The valuation of your property will be done gradually over the years.
The real estate concerned
The status of non-professional furnished landlord allows you to acquire two types of real estate. Also, you can invest in either the old or the new. Investing in new buildings is however not recommended because it is less profitable. On the other hand, the LMNP status allows you to acquire a property in student residence, tourist residence, etc. In some cases, a new purchase will even allow you not to pay VAT. But overall, investing in the old will always be more profitable.
Seasonal rental
There are several ways to rent a property acquired through the status of non-professional furnished lessor.
- In the tenant's main residence.
- Temporarily for a worker on CDD.
- In seasonal rental, the most interesting, as furnished tourist accommodation, lodges or guest rooms.
The advantage is that you can also offer only one part of your residence for non-professional furnished rental. You will thus take the opportunity to receive passing travelers for a short stay, and will be completely tax-free on your rents provided you respect the 120 rental days per year.
The conditions for renting in LMNP
To obtain LMNP status, certain conditions must be met:
- Your accommodation should be furnished to allow travelers to fully enjoy their new home upon arrival.
- You must pay all charges related to your accommodation, mainly specific taxes, taxes and other additional levies. This generally concerns the CFE, the tourist tax in the case of a seasonal rental and the RSI in the event that your seasonal income exceeds the ceiling of 23 euros and you are not affiliated to the general social security scheme.
- Your rental income must not exceed 23 euros and 000% of your overall income, under penalty of being reclassified as an LMP (Professional furnished rental).
- You do not have to be registered in the Trade and Companies Register (RCS) as a professional furnished rental company.
The LMNP tax regime
As a non-professional furnished rental company, you will be taxed in industrial and commercial profits, just like a business, even if you only rent accommodation. Since you are registered with the registry of the commercial court, you are forced to declare your income received in rents as BIC, commercial industrial profits.
Several possibilities are then available to you to declare your rents:
- The BIC system, with a reduction of 50%.
- The real regime to amortize and deduct your expenses.
- Discounts specific to seasonal rentals.
Note that if you choose a flat-rate allowance, this will apply to all of your charges. You will not be able to deduct another additional expense.
