Find out all about the LMNP status and its advantages thanks to our concierge service in La Rochelle
Real estate brings together many investment opportunities and allows professionals and individuals alike to benefit from attractive profitability thanks to their investments. However, the regulations are clear and apply differently to individuals and professionals in the field. In order to separate these two situations, the government has set up a specific status: the status of Non-Professional Furnished Renter (or LMNP status). What are the benefits of this status and who is it for? Your La Rochelle Concierge explains everything to you.
What is LMNP status
The LMNP or Non-Professional Furnished Renter status is, as its name suggests, specific to individuals investing in furnished rentals. This concerns properties sufficiently equipped to suit the basic living requirements of a tenant. That is to say, apartments or houses with decent bedding, an equipped kitchen (hob, oven, etc.), crockery and kitchen utensils, storage, etc.
Thus, for all those who wish to invest in Airbnb rental, this status can be interesting to cover your seasonal rentals. This concerns many owners benefiting from the support of our La Rochelle concierge.
Thanks to this specific regime, the government wishes to promote real estate investment for individuals by granting some advantages to LMNP lessors. In order to obtain this status, you must meet one of the following conditions:
- The income from your rentals over an entire year must not exceed 23 euros.
- These same receipts must in no case exceed the total amount of other household income.
- No member of your household should appear on the trade and companies register as a professional lessor.
Is it worth registering as LMNP investors
The French administration gives nightmares to many of us and the Airbnb rental sector is not left out. Which status to choose? What are the advantages and disadvantages of the LMNP regime, your La Rochelle concierge has made the point for you.
The different LMNP status regimes
After finding out if your situation is consistent with a possible LMNP status, it is time to determine for you which taxation of this status will suit you best. Subject to the Industrial and Commercial Profits (BIC) regime, there are two different tax regimes linked to the LMNP status: the Micro-Bic and the Bic Réel.
- Micro-Bic: if your annual income does not exceed €72 per year, you can take advantage of this scheme and benefit from a 600% reduction calculated on all of your Airbnb income. However, you will not be able to benefit from additional reductions depending on your charges.
- Bic Réel: mandatory for all annual property income over €72. Although it does not benefit from the same reduction, you will be able, thanks to the BIC Réel scheme, to have a reduction in charges. The deductible expenses are, among others: your loan interest, your taxes, the work carried out in your accommodation or the trustee and management fees for your apartment.
The benefits of investing in new
The LMNP status has many advantages for all investors wishing to make their home profitable, especially when investing in a new building.
First of all, non-professional furnished rental companies benefit from a tax reduction of 11% of the cost price of their real estate investment thanks to the Censi-Bouvard law. This allowance is automatically calculated on his taxes and is spread over 9 years.
If you invest in a student residence, dedicated to seniors or geared towards tourism or the hotel industry, the recovery of your VAT will be granted to you. You may also, depending on your tax system, be exempt from your capital gain. For LMNP status, this is done according to the exemption applicable to the general scheme.
The LMNP status is not subject to the ceiling of the Scellier system. You do not depend on your investment area and can modify the rent of your accommodation with more freedom. LMNP investors are not dependent on the ceiling on tenants' resources provided for by the Scellier social.
The opinion of our La Rochelle concierge on the profitability of LMNP status
As a rental management agency, our La Rochelle concierge service supports many owners in their investment projects. Created for individuals, the LMNP status has many advantages for Airbnb rentals. By calling on your concierge in La Rochelle, we will be able to guide you in your choice of plan and advise you on how to carry out your investment.
Although the Micro-Bic scheme is attractive thanks to its 50% reduction, the actual scheme may be more advantageous depending on the amount of your charges. If you are hesitant to choose a rental management agency, think about the real regime that allows you to reduce your management costs. In addition to only taking a 20% commission on your rental income (and this, without added costs), your La Rochelle concierge service allows you to claim a tax reduction while benefiting from the premium services provided by our professionals. .
Thanks to your La Rochelle concierge, you collect all your management costs in a single commission charged by YourHostHelper. You will save time, money, and unparalleled peace of mind while enjoying your rental income.
The LNMP status is a situation created by the government to benefit individuals who wish to engage in seasonal rental. Help from the administration, this status can be very interesting depending on your financial situation. These two tax regimes are advantageous when filing your tax return. Your La Rochelle concierge advises you to make a comparison according to your real estate investments to define which plan will suit you best.
