The status of non-professional furnished rental relies on an annual revenue threshold set at 23,000 euros. This amount, stated in Article 155 IV of the General Tax Code, determines the boundary between the LMNP regime and the transition to the status of professional furnished rental (LMP). Crossing this threshold, or approaching it without measuring the effects, changes the tax applicable to rental income, social obligations, and the treatment of capital gains upon resale.
Gross or net income: what the 23,000 euro threshold covers in LMNP
A common confusion concerns the nature of the income taken into account. The 23,000 euro threshold applies to gross income, meaning the rents received including charges, before any deduction of expenses, loan interest, or depreciation.
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The charges recovered from the tenant (provisions for charges, re-invoiced household waste tax) are included in the calculation. In practice, a monthly rent of 1,950 euros including charges is sufficient to reach the ceiling over twelve months.
This calculation is done at the level of the tax household, not for the individual property. A couple owning two furnished apartments adds the income from both properties. Understanding the LMNP ceiling of 23,000 euros therefore requires thinking globally, rather than property by property.
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Double condition for transitioning to LMP status: income and household revenue
Exceeding 23,000 euros in rental income does not automatically trigger the switch to LMP status. Article 155 IV of the CGI sets two cumulative conditions to qualify a landlord as professional:
- The annual income from furnished rental exceeds 23,000 euros including tax for the calendar year.
- This income exceeds the other professional income of the tax household (salaries, wages, non-rental industrial and commercial profits, non-commercial profits).
An employee earning 40,000 euros in net taxable income and receiving 25,000 euros in furnished rents remains LMNP: the first condition is met, but the second is not. The transition to LMP occurs only when both criteria are met in the same year.
Considered activity income
Pension income, rental income from unfurnished properties, and asset income (dividends, capital gains) do not count as professional activity income. A retiree with a modest pension and furnished rents exceeding 23,000 euros thus more easily meets both conditions than an employed worker.
Concrete tax consequences of exceeding the LMNP ceiling
The transition to LMP status leads to several tax changes that go beyond a mere change of label.
Social contributions and SSI affiliation
The professional landlord is affiliated with the independent social security system (SSI, formerly RSI). This affiliation generates social contributions calculated on the profit from the activity, whereas the LMNP only pays social levies at a flat rate on its BIC income. For tourist furnished rentals like Airbnb, this obligation is triggered more easily beyond 23,000 euros in revenue, even without a formal LMP transition, due to specific provisions for short-term rentals.
Capital gains and reintegration of depreciation
Under the LMP status, the capital gain upon resale falls under the regime of professional capital gains and not the regime for individuals. The exemption after 22 years of ownership for income tax no longer applies.
Since the 2025 finance law, a change also affects LMNPs under the real regime: the depreciations deducted during the rental period are reintegrated into the calculation of the capital gain upon resale. This measure reduces the historical tax advantage of the real regime in the long term, except for certain service residences (notably student residences).
Offsetting deficits
The LMP can offset its activity deficits against the overall income of the household, without a limit on the amount, whereas the LMNP can only carry forward its deficits against BIC income of the same nature for ten years. This point benefits the LMP during heavy investment phases, but this offsetting comes with the social and patrimonial constraints described above.
Interaction between the 23,000 euro threshold and the micro-BIC regime
The 23,000 euro ceiling should not be confused with the thresholds of the micro-BIC regime, which concern the method of declaring rental income, not the status of the landlord.
- Classic long-term furnished rental: the micro-BIC applies up to 77,700 euros in annual revenue, with a flat-rate deduction of 50%.
- Unclassified tourist rentals: since the Le Meur law of November 2024, the deduction drops to 30% and the revenue ceiling is lowered to 15,000 euros per year.
- Classified tourist rentals and guest rooms: the 71% deduction remains applicable, but on a revenue ceiling revised by the same law.
A landlord can therefore be LMNP (revenues below 23,000 euros or second condition not met) while still being under the real regime because their revenues exceed the micro-BIC ceiling for their category. The two threshold grids operate in parallel.
Prorata temporis and year of starting activity
The year the furnished rental activity begins during the fiscal year, the 23,000 euro threshold is assessed on a prorated basis according to the number of days of activity. Starting rental on July 1 reduces the effective ceiling to about half. This prorata rule is often forgotten in the first year, which can lead to an unanticipated excess and a requalification to LMP from the first fiscal year.
The choice of tax regime (micro-BIC or real) and monitoring of the 23,000 euro threshold should be planned before the rental begins, not after the first declaration. A difference of a few hundred euros in monthly rent can shift the entire tax situation of the household for the year in question.