Azur Verdon Immo - Loueur meublé non professionnel
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Furniture rental company

Not professional

Become the owner of a furnished property by receiving non-taxed rental income while recovering the VAT (only if you buy a new property).

Rental income

not taxed

What does the status of non-professional furnished lessor provide for?

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The conditions of the LMNP

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The advantages of LMNP

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Que prévoit le statut de LMNP

What does the status Leaseback?

This Non-Professional Furnished Rental (LMNP) status allows you to become the owner of a furnished property by receiving non-taxed rental income while recovering VAT (only if you buy a new property). This furnished rental therefore consists in renting premises (rooms or apartments) furnished, directly habitable by the tenant. It is a form of real estate asset management which allows to benefit from an attractive tax regime and significantly less restrictive regulations than bare rental.

In addition to this, you need to know more about it.

This system makes it possible to develop the network of reception facilities for the elderly (dependent or not), itinerant company staff, tourists or even students.

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Les conditions de la LMNP

The conditions of the LMNP

To invest in LMNP, the following conditions must be met:

  • buy a home and furnish it or buy a furnished home

  • achieve less than € 23,000 in annual revenue from the activity of renting a furnished apartment or obtain less than 50% of its total income from this activity,

  • not be registered or register of commerce and companies (RCS) as a professional furnished rental company.

Accommodation is considered furnished from the moment the tenant can live there suitably. The furnished apartment must be fully equipped (bedding, kitchen utensils, heating, storage furniture, refrigerator, table and chairs, etc.). The tenant must be able to reside there with only his personal belongings to bring.

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The non-professional furnished rental company can use its rental as the main residence of the tenant, on a temporary basis (as an employee posted for several weeks in another city) or have a seasonal nature (example: guest rooms, lodges, furnished tourist accommodation, etc.) .

The advantages of LMNP

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The tax regime for industrial and commercial profits (BIC) and not income from land

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The major advantage of furnished rentals is that the profits from this rental escape the taxation of property income and are subject to the industrial and commercial profits (BIC) regime.

If the lessor receives a maximum revenue of € 32,100 per year, the tax regime would be that of the micro-BIC. This regime presents a simpler accounting for the investor, with an exemption from VAT. The benefits will then be determined after a standard deduction of 50%, representing the costs.

If the individual receives annual revenue of between € 32,100 and € 763,000, he will be taxable under the simplified actual regime.

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In the event of a deficit, it will only be attributable to income of the same nature. That is to say only on non-professional BIC income. This deficit will be carried over over the next ten years. The deficit will be created by:

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  • acquisition costs

  • loan interest

  • depreciation

  • property tax

  • condominium fees

  • maintenance and repairs

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In addition to this, you need to know more about it.

Depreciation of your property

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The lessor will have the possibility of carrying out linear depreciation and by components of his property, that is to say that it will always have the same value over time.

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Depreciation in LMNP and LMP must be practiced not on the value of the whole, but independently for each component: shell, roof, interior finishing work, exterior finishing work, finishing, furniture. Each component depreciates at a different time and rate.

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In addition to this, you need to know more about it.

In addition to this, you need to know more about it.

In addition to this, you need to know more about it.

In addition to this, you need to know more about it.

In addition to this, you need to know more about it.

In addition to this, you need to know more about it.

In addition to this, you need to know more about it.

In addition to this, you need to know more about it.

In addition to this, you need to know more about it.

In addition to this, you need to know more about it.

In addition to this, you need to know more about it.

In addition to this, you need to know more about it.

In addition to this, you need to know more about it.

In addition to this, you need to know more about it.

In addition to this, you need to know more about it.

In addition to this, you need to know more about it.

In addition to this, you need to know more about it.

In addition to this, you need to know more about it.

The possibility of deducting the acquisition costs of the building

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Unlike a simple bare rental, the LMNP or LMP may deduct, the year of its payment or spread over the depreciation period, the acquisition costs, that is to say:

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  • The costs of the notarial act;

  • Guarantee costs;

  • Remuneration of intermediaries

  • the notary's fees

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In addition to this, you need to know more about it.

The possibility of investing in service residences and benefiting from leases signed by a reliable manager for 12 years.

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The investor can purchase an apartment, a house that he will make available to a company that will operate the property as part of a tourist residence, a hotel, a retirement home, etc.

The investor signs a commercial lease with the operator of the residence and the operator of the residence pays a monthly rent to the investor whether the property is rented or not.

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Guarantee :

  • To collect a rent whatever the reality of the rental of the apartment (except bankruptcy of the operator)

  • Indexation of the rent fixed in the lease. This is an essential piece of data which alone can justify the quality of an investment;

  • To organize the sharing of maintenance, repair and major works costs between the lessor (investor) and the lessee (operating company).

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In addition to this, you need to know more about it.

VAT recovery

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In the event of the acquisition of a new property, the investor will have the possibility of recovering the amount of VAT upon delivery of the property. In the event that the lessor invests in an old property already in operation, the amount of the sale will be exempt from VAT and will then be exclusive of tax.

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Les avantages de la LMNP
All our tax exemption systems

Build up real estate assets to benefit from additional rental income, save taxes or prepare for your retirement. A whole panoply of tax measures encouraging real estate investments.

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