LMNP 2025 declaration: instructions for declaring your furnished rental income

Do you own a furnished property that you rent out? Then you are subject to the Non-Professional Furnished Rental (LMNP) scheme.

Declaring your rental income every year is a crucial step. To help you navigate this process, here is an updated guide based on administrative information from 2025.

Déclaration LMNP 2025

Step 1: Identify your tax regime

The first step is to determine your tax regime. Two main options exist:

• The Micro-BIC regime: This regime applies if your annual rental income excluding taxes does not exceed €77,700 for standard furnished rentals and unclassified furnished tourist accommodation, or €188,700 for classified furnished tourist accommodation. The tax authorities then apply a flat-rate deduction for expenses of 50% (or 71% for classified furnished tourist accommodation), and you are taxed on the remaining income. This is a simple regime, ideal if your expenses are low.

>> Please note that the deduction rates change for income after January 1, 2025.

• 50% for classified properties and guest rooms (with a ceiling of €77,700 in annual rental income);

• 30% for unclassified properties (with a ceiling of €15,000 in annual rental income).

• The Actual Regime: If your income exceeds the Micro-BIC thresholds, or if you choose it voluntarily, you are subject to the Actual Regime. This regime allows you to deduct all your actual expenses (management fees, insurance, loan interest, renovations, depreciation of the property and furniture, etc.). Although more administratively complex, it can be more advantageous if your expenses are significant.

Where and when should you declare your LMNP income in 2025?

Your LMNP income declaration is filed at the same time as your personal tax return. In 2025, the filing deadline will depend on your department of residence. Be aware of the tax calendar publication dates by the administration. LMNP income tax returns are filed using form 2042-C PRO, available online at impots.gouv.fr.

If you are under the Micro-BIC tax regime: you must indicate the amount of your gross income in boxes 5ND, 5OD, or 5PD (depending on the type of rental) of this form. The tax deduction will be automatically applied by the tax authorities.

If you are under the Actual tax regime: the process is more detailed. You will need to complete several annexes to the 2042-C PRO tax return, including:

>> Form 2031-SD (Declaration of Income of Industrial, Commercial, Craft, Agricultural, and Self-Employed Businesses - Normal or Simplified Actual Tax Regime).

>> Annex 2031-B (Simplified Balance Sheet).

>> Annex 2031-G (Depreciation Statement).

Pitfalls to avoid and points of attention:

Clearly distinguish between deductible expenses: under the real tax system, it is crucial to know exactly which expenses you can deduct. Keep all your supporting documents safe.

Depreciation: Depreciation of property and furniture is a significant non-cash expense under the real tax system. It allows you to recognize the depreciation of your assets and reduce your tax base.

Specific reporting requirements: Depending on the nature of your rental (furnished tourist accommodation, short-term rental via platforms, etc.), additional reporting requirements may exist. Check with the tax authorities or a certified public accountant.

Turnover thresholds: Be sure to comply with the thresholds of the Micro-BIC system to avoid involuntarily switching to the real tax system.

Where can I find official information in 2025?

For reliable and up-to-date information, the definitive source remains the official website of the French tax administration: impots.gouv.fr. There you will find:

• Updated tax return forms for 2025.

• Detailed explanatory notes for each form.

• Frequently Asked Questions (FAQs) to answer common questions.

• The ability to contact the tax administration if necessary.

Declaring your LMNP income in 2025 requires thoroughness and a good understanding of the rules applicable to your situation. By correctly identifying your tax regime and consulting official sources, you can complete this process with confidence. Don't hesitate to consult an accounting professional if you have any doubts or if your situation is complex.